KCA Deutag Wins $67 Million in New Contracts

KCA DEUTAG, a subsidiary of Abbot Group plc, announced the awarding of US$67m in contracts from clients operating in the Middle East, West Africa, Caspian Region and Asia.


A contract has been signed with the Bahrain Petroleum Company (BAPCO), the state-owned oil company for a 20-month drilling and workover program commencing December 2004.

A planned five-month major upgrade to Rig T-80, which will be used for the duration of the contract, has already started as part of KCA DEUTAG's ongoing rig upgrade and fleet expansion strategy.


The first contract has been secured for KCA DEUTAG's newly upgraded US$9.6 million 3000hp rig T-79, which was launched in Dubai at the end of April 2004

Margham Dubai Establishment (MDE) a state oil company of Dubai, awarded the work to T-79 after an extensive exercise in competition with other international drilling contractors. The rig will be operating in the Margham field, located in the desert of the emirate of Dubai, near the Sultanate of Oman, drilling one well initially, with possible options on other deep wells and workovers.

'KCA DEUTAG has an excellent rack record in the Middle East,' commented Claus Chur, Group Director, Land Drilling Division. "We are capitalizing on our long term investment programme and are now well positioned to meet the growing demand for land rigs in this area."


In Qatar RasGas Company Limited and Dolphin Energy Limited have awarded KCA DEUTAG a contract for Rig T-67 to drill 4 wells, 2 for RasGas and 2 for Dolphin Energy, with a possible option on 4 additional wells, commencing November 2004.


Brunei Shell Petroleum Company Sdn. Bhd. (BSP) has awarded a two year contract with two one year options to KCA DEUTAG.

The work will commence in January 2006 and the contract is for the provision of a fast moving rig and drilling operations as part of the Menang Drilling Program. A 350 tonne capacity rig is being built for the contract.

"The new rig is designed to improve drilling efficiency and reduce well costs in Brunei," explained Claus Chur. "KCA DEUTAG was awarded this contract as a result of the exemplary HSE and drilling performance from the T-41 rig which we have been operating successfully in Brunei for some time."


A contract to supply Project Management Services for the Pasni 2 exploration well was awarded to KCA DEUTAG by Pakistan Petroleum Ltd, and work is already underway on the project. The well is planned to spud late 2004.


In Baku the Azerbaijan International Operating Company (AIOC) announced the award of key contracts for the development of Phase 3 of the Azeri, Chirag and deepwater portion of the Gunashli (ACG) Full Field Development.

KCA DEUTAG was awarded a US$10 million contract for the Engineering and Procurement of Drilling, Utilities and Quarters (DUQ) modules. The scope of work includes engineering and procurement support for the DUQ drilling facilities. Work has already started, and is due for completion by Q3 2007.


An interim agreement for a three-year contract has been signed between KCA DEUTAG and SPDC for T-76, a 2,000 hp rig from the fleet in Europe, which will be shipped to the country. The mobilisztion is in full swing, with the commencement date to spud the first well being December 2004.

Panocean has also agreed a six months extension to the contract for Rig T-57, from November 2004 until April 2005.