KCA DEUTAG expands in Southeast Asia with Myanmar contract
KCA DEUTAG has been awarded a strategic new contract from PTTEPI, the national oil company of Thailand, for the provision of drilling operations and maintenance services with KCA DEUTAG’s self-erect tender (SET) barge, the Glen Affric. The SET barge will be used for PTTEPI’s Zawtika Project and is expected to drill up to 29 wells.
The contract has a value of up to US $50 million and was due to start before the end of 2012, with an approximate duration of 412 days and an option for a further 150 days.
“Our organization in Southeast Asia continues to deliver outstanding operational performance, which is the cornerstone that helped us secure an award such as this,” Larry Stamp, regional manager of Southeast Asia and Australasia for KCA DEUTAG, said. “This is an exciting new development for the company, as we enter a new country which is still in its infancy of oil and gas production. We are one of the first drilling contractors to enter this market, and this offers us the possibility to capitalize on other upcoming opportunities.”
Myanmar is an emerging energy market hotspot with significant oil and gas fields both onshore and offshore. The country has recently opened up to outside investment as the government aims to accelerate growth and transform it into one of the most significant oil and gas markets in Southeast Asia.
In addition to the Glen Affric, KCA DEUTAG has a SET barge in Malaysia, a land rig operating in Brunei and a warm-stacked SET in Singapore that the company is currently bidding for work in Southeast Asia, said Tony Rodnight, business development manager. “We’re seeing dayrates certainly rising over last year, a trend that is supporting discussions regarding a number of newbuild projects,” he said.
More information on KCA DEUTAG’s growing operations in Asia Pacific will be available in the upcoming Jan/Feb 2013 issue of Drilling Contractor.