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.
The company is counting on growing “premium inventory”—wells that generate rates of return of at least 30% at $40/bbl oil— to increase resource potential.
Hedging has been a security blanket for some. Having assets that can deliver high returns at $40 oil prices gives EOG an edge.
Revenue for the independent E&P—which has assets in the Eagle Ford, Austin Chalk, Delaware, Woodford and Rockies—jumped about 41% to $3.68 billion.