Aberdeen-based drilling giant KCA Deutag said yesterday it had won a “strategic” new contract, worth up to £31million, for work off the coast of Burma.
The south-east Asian country – whose name was changed officially to Myanmar more than 20 years ago – is now an emerging energy market hotspot.
It has significant oil and gas fields both onshore and offshore, and was recently opened up to outside investment as the government aims to accelerate growth and transform the country into one of the most significant energy markets in the region.
KCA Deutag said its early entry into the country, through a contract with Thailand-based exploration and production company PTTEP, strengthened its strategic position in south-east Asia.
The move is also expected to open up the possibility of further onshore, offshore and engineering-related contracts.
Larry Stamp, KCA Deutag regional manager for south-east Asia and Australasia, 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 capitalise on other upcoming opportunities.”
KCA Deutag will use a barge-type rig, the Glen Affric, to carry out drilling operations and maintenance services on PTTEP’s Zawtika Project under the contract.
The work involves up to 29 wells and will already be under way by the turn of the year. It is expected to take about 412 days, although there is an option to extend the deal for a further 150.
KCA Deutag is one of the world’s leading drilling and engineering contractors.
It operates in excess of 100 drilling rigs in more than 22 countries and employs around 8,000 people globally.
The company owns a fleet of more than 60 land rigs, three jackups and three self-erect tender barges.
Recent big contracts have seen it secure entry into the dynamic Iraqi and Brazilian oil and gas markets.
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