Global energy services contractor KCA Deutag has announced contract extensions worth nearly £100 million for its land drilling business.
The deals are primarily related to land rigs in Saudi Arabia and Oman.
They come as the firm continues work to close out the acquisition of Saipem’s land rig business.
Italian multinational oilfield services company Saipem is selling its onshore drilling business to KCA Deutag for £482m.
KCA Deutag said these developments reflected its focus on growth in key markets in the Middle East.
In Saudi Arabia, the company has been awarded multiple one-year extensions worth a
combined total of £30.6m.
A one-year contract with a new client in Oman, with a further one-year extension option, plus deals with existing clients across multiple rigs in the same country have delivered an additional £61.7m.
In Europe, KCA Deutag is celebrating new contracts wins worth a total of nearly £5.25m.
These will see the drilling contractor carry out work on projects in Germany and the Netherlands.
KCA Deutag land drilling president Simon Drew said: “We are pleased to have secured
multiple new contracts and extensions, building on our successful record of safe, efficient delivery for our valued clients in key markets.
“These contract wins and extensions reflect our strategic focus on growth, particularly in the Middle East, powered by ‘well of innovation’ technologies and energy efficient operations.”
KCA Deutag was founded in 1992, as Abbot Group by former executive chairman and Moray-based sheep farmer Alasdair Locke, one of the wealthiest people in Scotland.
Abbot was floated on the stock market in 1995 and in 2001 it bought one of the biggest names in North Sea drilling, Deutag, for £134m.
Today, the group operates about 80 drilling rigs in 14 countries, either directly or through affiliates.
It employs people in Europe, Africa, the Middle East, Caspian region and Canada.
The firm’s global headquarters are in the City South business park, between Aberdeen and Portlethen.
Group activities are all under three business units – land, offshore and Kenera.
With a strong focus on the energy transition, Kenera brings together KCA Deutag’s RDS design and engineering specialists and Germany-based land rig and oilfield manufacturer Bentec under one business unit.
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