KCA Deutag said Nov. 18 that its land drilling operation has won new contracts worth approximately $460 million in the Middle East, Africa and Europe.
Following an announcement that KCA made in March that a client had reserved three rigs for an option period, the company confirmed today that these have subsequently been contracted for two years, with an option to extend by two further years. They have also been equipped with FX-Control, one of its newly launched +veDRILL technologies.
In Oman, KCA has won a three year contract extension, which commences in 2021, for five rigs operating for one of the country’s leading exploration and production companies. These rigs are currently being upgraded with the group’s latest equipment automation features, which are part of our +veDRILL Future technology range. These aim to remove people from the red zone and reduce invisible lost time.
In addition to this, one of the rigs in Oman has secured a new two year contract with two one year extension options. The company has also been successful in Iraq where two of its rigs have had their contracts extended by one year.
In Nigeria, KCA has won a one year contract for one rig with an option to extend by an additional year.
In addition, it has been awarded three contracts in Algeria for four rigs in total. The largest is a three year contract for two of these rigs, with a two year extension option. The other two are for short drilling programs.
In the Netherlands, one of its rigs has secured a new contract for a short drilling program with a salt mining company.
As part of the contract and to meet the challenging drilling requirements, the rig is being upgraded with a new 750t Top Drive, supplied by Bentec, KCA Deutag’s manufacturer of drilling rigs and oilfield equipment.
“These awards significantly increase KCA Deutag’s contract backlog and are a testament to the strength of our operational capability and reputation in the marketplace,” Simon Drew, president of land, said.
Oil pricing agency S&P Global Platts said Feb. 24 the market focus was on WTI Midland crude as a potential addition to dated Brent, a move that would look beyond its North Sea home.
Oil prices rose toward $46/bbl on Aug. 26, near the highest since March, lifted by U.S. producers shutting most of their offshore Gulf of Mexico output ahead of Hurricane Laura.
Oil fell towards $65 a barrel on March 5, pressured by the restart of Libya's biggest oilfield and on expectations for an increase in U.S. crude inventories.