KCA Deutag has been awarded a five year plus options contract by BP, for the construction and operation of three new build fast moving land rigs in Oman. These will be manufactured by Bentec, KCA Deutag’s manufacturer of drilling rigs and equipment. The contract value is in the order of $220 million USD for the initial contract, and $340 million USD including options.
KCA Deutag currently operates seven rigs in Oman ranging from 750 to 3,000 HP. This contract represents an excellent business growth opportunity, in a country with ambitious plans to further increase its oil and gas production levels. The specification of the new fast moving desert rigs will allow KCA Deutag over the contract duration, to demonstrate its commitment to continuous performance improvement, in both safety and drilling performance, which in turn will reduce the total drilling cost for BP.
Andy Hendry, President of KCA Deutag Land division, said “BP Khazzan is a very high profile development within Oman and the broader Middle East. Given the desire for best in class drilling efficiency and safety, we are extremely excited to be partnering with BP on this project. KCA Deutag is also looking forward to promoting local content and in-country value for Oman in the way that we work. This is a very significant land drilling contract for KCA Deutag and I am especially proud of the many employees and functional teams that contributed to its award. Drilling will commence in quarter four of 2014.”