KCA Deutag Kicks Off Iraqi Operations

KCA Deutag has commenced operations in Iraq, with the deployment of one rig in the north of the country and a second being mobilized shortly.

KCA Deutag established its presence in the country with its first rig, now operating in Northern Iraq. The company's second Iraqi rig, a new-build 2,000HP land rig, T-601, is arriving in Basra, Southern Iraq, in the next few weeks and will be operational as of early 2011.

Tim Summers, KCA Deutag chairman said, "Iraq is a key strategic market for KCA Deutag as the country looks to develop its huge reserves base. Even before the Iraqi government increased their estimate of the country's proven oil reserves by 25 percent to 143bn barrels, the Iraq Drilling Company was planning to drill more than 250 wells each year from 2011. Iraq represents an important opportunity both for KCA Deutag and Bentec given the anticipated level of industry activity and investment in the region. KCA Deutag has been operating in-country with one rig in the North since September 2010. Our second rig, a 2,000hp land-rig destined for Southern Iraq, will be arriving in November 2010 with operations expected to start in early 2011.

"In addition to the two rigs already commissioned for Iraq, we are planning to ship a third rig from Dubai into the region, expected to be operational in 2011, and are also in the process of building two additional 1,500hp Speed Rigs, manufactured by Bentec, to address the specific requirements of Iraq. They are expected to go into service in during 2012.

"KCA Deutag has also recently signed an MoU with the Iraq Drilling Company to jointly pursue future drilling and training opportunities in Iraq and we have begun recruiting Iraqi engineers in line with our policy of knowledge sharing. KCA Deutag has a long history in the Middle East and was involved with the Iraqi oil services sector as early as in the 1950s and operated successfully in the country up until the 1980s. We again look forward to providing safe, effective and trouble free services to the re-emerging Iraqi oil industry and to helping rebuild its presence on the global oil market, and thus contribute to the overall economy."