KCA Deutag has been awarded a £30 million North Sea contract extension from BP,
and a series of new land drilling contract wins in Russia, West Africa,
Middle East, Asia and Europe with a total value of over US$100 million.
KCA Deutag's existing North Sea offshore platform drilling contract with BP
has been extended for a further three years, to April 2008. The contract
will cover five platforms: Magnus, Miller, Bruce, Andrew and Harding, and
is valued at approximately £30 million, with KCA Deutag continuing to
provide a range of drilling, maintenance and engineering services.
Commenting, Brian Taylor, KCA Deutag Director for UK, Norway, Caspian and
Sakhalin said, "We have been in detailed discussion with BP for some months
and are delighted that our exemplary safety record and long term commitment
to a valued client has been recognized and rewarded."
Sakhalin Island, Russia
KCA Deutag's rig T-2000, the most advanced western drilling rig in Russia,
is being mobilized to go to Sakhalin Island in far eastern Russia,
following a letter of agreement, to drill 3 onshore oil wells for
Petrosakh, a subsidiary of Russian company Urals Energy. Currently the rig
is in Western Siberia where it has been working for RITEK through a
Schlumberger sub contract. The spud date is October 2005, and the project
has an estimated duration of 12 months.
Pan Ocean Oil Corp in Nigeria has awarded KCA Deutag a 2 year contract with
a 1 year option, for oil and gas drilling. Rig T-57 is being upgraded for
the project, and drilling is due to start at the end of Sept 2005.
In Gabon KCA Deutag has won an oil drilling contract with a new client, Pan
African Maghena Inc SARL for rig T-48, which is currently in Thailand.
Following mobilisation, operations are due to commence in November 2005 for
I year, with options for 2 six month extensions. KCA Deutag previously
operated in Gabon up until 1998.
In Austria, leading oil and gas Group OMV has awarded KCA Deutag an
additional contract for a second rig to drill 2 deep exploration gas wells,
with a one year extension option. Rig T-52 is being refurbished for the
project, and is due to commence work in December 2005. This follows on
from a substantial contract award by OMV announced in May 2005 for a new
rig build for gas drilling, due to start in May 2006.
The Netherlands and Switzerland
Total E&P Netherlands B.V. has awarded a contract for KCA Deutag's rig T-45
to carry out a 1 well deep workover program in the Netherlands,
commencing July 2005.
Rig T-45 will then be moved to carry out an underground gas storage
program for BP Netherlands, for 1 well, with a possible additional 1 well
option. This is due to commence in October 2005.
After completion of the BP Netherlands contract rig T-45 will then be
mobilized to Basle in Switzerland to drill 2 ultra-deep geothermal wells
starting in Feb/March 2006 for Geothermal Exploration Switzerland. The
contract duration is about 10 months, and the wells will be drilled to a
depth of 5,000m, and are understood to be some of the most demanding
geo-thermal wells drilled to date in Western Europe.
The contract has been extended for KCA Deutag's Rig T-78 in Oman for PDO
for an additional full year, following on from the original 2 year
Rig T-202 is currently undergoing a major rig upgrade program in Jebel
Ali to increase the rating from 2000hp to 3000hp in preparation for a new
contract for Unocal Bangladesh for an 18 month gas drilling project, with
BP has renewed the contract for rig T-34 in Pakistan for an additional 2
years, with an option for a third year.
Commenting, KCA Deutag Chief Executive Maurice White said, "I am extremely
pleased with these new contract wins, which will maintain the already high
utilization rates of our land rigs, and confirm our decision to invest in
upgrading existing rigs and building new rigs to expand the fleet. They
also reinforce our long term strategy of internationalization."