Drilling contractor KCA Deutag has won a North Sea deal worth up to £1.4billion.
The Aberdeen-based firm said yesterday the agreement with Statoil for work on the Norwegian continental shelf would run for an initial eight years, with an option to extend it for up to a further 12 years.
It added that the deal would lead to up to 400 new jobs over four years.
Although most of these will be based in Norway, the contractor said it would draw on the expertise of its Aberdeen workforce to complete the contract.
The first phase of the agreement – for the management, operation and maintenance of two jackup rigs – is worth £589million but extensions would take that up to £1.4billion.
KCA chief executive Norrie McKay said the deal would help make KCA the leading drilling contractor in Norway.
“This award enhances our already significant business in Norway and also sets a precedent for KCA Deutag to target further drilling operations and management contracts on new-build mobile offshore drilling units that are third-party owned,” he added.
KCA said it would also provide input into the engineering design and construction of the two rigs, which will be able to operate on both surface and subsea wells.
The jackups are being built by Samsung Heavy Industries in South Korea.
KCA said it had been working with Statoil for nearly 30 years.
Rune Lorentzen, chairman of Norwegian subsidiary KCA Deutag Drilling Norge, said: “Today’s contract award extends a long-standing and productive working relationship with Statoil and recognises our efforts to deliver continuous improvement and value to our clients. We employ more than 1,000 people in Norway and will provide substantial resources to ensure a successful start-up. This is a bold new chapter for all companies involved.”
KCA employs 8,000 people worldwide, including more than 1,000 in the UK, and operates 100-plus rigs in 22 countries.
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