KCA Deutag Wins Long-Term Rig Contract from NAM
KCA Deutag has won a multimillion Euro contract from Nederlandse Aardolie Maatschappij BV (NAM), a joint venture of Shell and ExxonMobil, for the provision of KCA Deutag's Bentec-built T-700 heavy land drilling rig. This contract is further proof of KCA Deutag's leadership in the European land drilling sector and confirms its long-term relationship with NAM.
The overall contract duration is seven years, with two years firm at a value in excess of €20 million and a further five years in options. Once fully operational this new rig will contribute significantly to KCA Deutag's land drilling revenues and EBITDA.
Holger Temmen, KCA Deutag's Chief Executive Officer, said, "This is a significant contract award and builds on KCA Deutag's excellent reputation and long history of operations in The Netherlands, especially with NAM. The T-700 rig win also reinforces both Bentec’s standing as one the premier international rig manufacturers and KCA Deutag's ability to provide integration of world class rig design and operational capability.
"This is an innovative new rig that has been designed specifically to operate within the strict regulatory requirements of the European drilling market, and is part of the company’s ongoing expansion of its fleet to meet customer demand. The T-700 rig is expected to operate in various regions of the Netherlands and drilling will commence in early 2012."
Willy Oude Essink, Well Delivery Leader at NAM, added, "We are pleased to build on our longstanding relationship with KCA Deutag based on trust, performance and innovation. NAM operates in environmentally sensitive areas and KCA Deutag and Bentec have assisted us throughout in developing heavy land rigs. The T-700 is designed for the specific challenges in our industry. We look forward to continuing this relationship with the signing of this contract."