KCA Deutag has secured land drilling contracts and contract extensions with a total value of $379 million, with existing and new customers in Saudi Arabia, Oman and Pakistan.
In Saudi Arabia, KCA Deutag has been awarded contract extensions and an equipment upgrade project with a combined value of $292 million. The contract extensions amount to a total of 23 years of additional work across four rigs, while the equipment upgrade project includes the delivery of mechanized catwalks on two rigs to improve safety and operational performance.
Further success in Oman has seen the company extend two existing contracts as well as gain one new contract award with a total value of $78 million. Two rigs in Oman have secured extensions for two and one-year contracts respectively while a third rig, currently stacked, has been awarded a new three-year contract, with options that could extend this to five years.
Adding to our commitment and investment in the region, in Oman KCA Deutag has completed the build of the first two highly automated newbuild rigs which are currently undergoing commissioning and are due to be mobilized to their first location shortly. KCA Deutag has finalized the design of the next two rigs with the customer and has begun the construction phase for rig delivery in 2024. Each of the four rigs will fulfill a 10-year drilling operations contract secured in January 2022.
One rig in Pakistan has also secured a new one-year contract, with a value of $9 million with an existing customer in the country.
“These contract awards and extensions in the Middle East demonstrate our strategic focus on sustainable growth in this key core region for our Group. This is a testament to our strong safety and operational performance as we collaborate with our customers to safely deliver additional drilling programs and solutions for the energy transition in the region,” said Simon Drew, KCA Deutag President of Land.