KCA Deutag has won two major contracts in short order… a long-term deal with BP for the build and operation of new land rigs in Oman, and the largest-ever order for land rigs in the history of its German manufacturing subsidiary Bentec.
We can reveal that the BP contract is worth at least $220million and could reach $340million if options are exercised. The core contract will run for five years.
It covers the build and operation of three new-build fast-moving land rigs in Oman. These will be manufactured by Bentec and be deployed on the Khazzan project.
KCA Deutag currently operates seven rigs in Oman ranging from 750 to 3,000 horsepower.
The Aberdeen-headquartered group says the BP contract represents an “excellent business growth opportunity”, in a country with ambitious plans to further increase its oil and gas production levels.
KCA Deutag says too that the specification of the new fast-moving desert rigs will, over the contract duration, enable it to show its commitment to continuous performance improvement, in both safety and drilling performance, which in turn would 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 Q4 this year.”
Turning to the Bentec contract announced January 24, this is with Enafor of Algeria is the largest single contract in its 20-year history.
The value of the deal has not been disclosed. It will see the company, headquartered at Bad Bentheim, deliver seven desert drilling rigs to the state-owned company within the next 17 months.
As with the rigs destined for Oman, the Enafor rigs will be kitted out with Bentec equipment, including top drives, pumps, drawworks, power control rooms and electrical controls, all of which are manufactured at the Bad Bentheim site.
Bentec previously sold and successfully delivered four drilling rigs to Enafor last year, which suggests that the Algerian company is pleased with their quality and performance.
The firm’s technical solutions, industry knowledge and expertise were the decisive factors that Enafor lighten on when selecting a drilling rig and equipment manufacturer to significantly modernise its drilling rig fleet, according to the company’s CEO Dirk Schulze.
“We are extremely proud to have secured our largest deal since the company was established in 1994,” said Schulze.
“We work hard to maintain the highest quality standards across our drilling rig systems and this success is testament to that, the services we provide and our continued commitment to developing additional business in Algeria.”
Bentec is one of the world’s leading manufacturers of drilling rigs and is especially experienced at delivering land units suited to the conditions that prevail in Europe, Russia, North Africa and the Middle East.
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