KCA DEUTAG Lands Over $125 Million in Contracts

KCA DEUTAG, a wholly-owned subsidiary of Abbot Group plc, has announced contract extensions and new contract wins in the Middle East, Caspian, Africa, Europe and the North Sea worth more than $125 million.

North Sea

In the North Sea Britannia Operator Ltd (BOL) has awarded KCA DEUTAG a five-year platform drilling and maintenance services contract on Britannia, with options for two, two-year extensions. This contract was won by competitive tender.

BP has also notified KCA DEUTAG of its intention to negotiate a three-year extension to the current contract covering six platforms.

Middle East

Petroleum Development Oman (PDO) has awarded a $US27m drilling contract extension of four years with a possible option of an additional two, two-year extensions to KCA DEUTAG for its 3,000hp rig T-51 in Oman. Under the existing contract, T-51 has been continuously operating for PDO since 1995.

The contract extension also includes a two month detailed rig upgrade and refurbishment program, which encompasses the provision of three new mud pumps, five new engines (CAT 3512 B), an SCR upgrade, iron roughneck, new tank farm, and camp extension.

North and West Africa

In Libya, Wintershall has exercised a one year contract option with KCA DEUTAG for its 2000HP rig T-72 and agreed to the conditions of a further one year option.

KCA DEUTAG’s newly built Sandmaster K-750 drilling and workover rig T-108 is presently rigging up in Libya where it will commence operations by the end of May 2005 for Repsol Exploracion Murzuq S.A. (REMSA). The contract is to drill three wells with an option to extend to a further three wells. The rig will be working about 1,200 km SSW of Tripoli in the Sahara desert, an operation which required a special, highly mobile desert rig, such as the T-108.

KCA DEUTAG has been awarded a six-month contract with extension options by Shell Petroleum Development Company (Nigeria) for its 700hp rig, T-43, which commenced operations in January 2005.

Caspian Region
Unique Engineering Contract

Rig Design Services (RDS), a division of KCA DEUTAG, has received a Letter of Intent from Agip KCO (the Agip Kazakhstan North Caspian Operating Company N.V.) leading to a contract for the Front End Engineering Design (FEED) of two cantilever barge rigs for Tranche 3 of the Kashagan Field, located in the northern Caspian Sea, offshore Kazakhstan.

These bespoke rigs, which will be designed specifically to allow drilling operations in shallow North Caspian waters, are believed to be the first of their kind in the world. Each comprises a steel barge, 100m long by 75m wide, which will contain all drilling and marine equipment as well as living quarters. The cantilevered drilling equipment set will be capable of being skidded along the well row, located at the edge of an artificial island, providing access to a number of development wells.


KCA DEUTAG has recently been awarded a significant three year drilling contract by OMV Austria, the leading oil and gas Group in Central Europe, with activity due to start in mid 2006. KCA DEUTAG will be constructing a new 1500hp rig for the contract.

Commenting on these contract extensions and wins, Maurice White, KCA DEUTAG Chief Executive said, “The North Sea contracts confirm our commitment to maintaining a leading position in offshore platform drilling in the UKCS, and the land drilling contracts reinforce our strategy of focusing on the key geographic regions of North and West Africa, the Middle East, and Europe. We have been operating in Oman and Libya continuously for over 40 years and these latest wins further consolidate our leading positions in these countries. The pioneering project for RDS in Kazakhstan recognizes the innovative skills of our engineering teams and their depth of experience. “