KCA Deutag Wins Additional Caspian Sea Work from BP

KCA DEUTAG Drilling has been awarded a further interim arrangement, again by BP, which will to lead to contracts for platform drilling services on the West Azeri and East Azeri platforms.

The estimated value of these contracts is US $150 million and the primary duration will be five years from commencement of drilling operations in 2005 and 2006 respectively. KCA DEUTAG will commence the recruitment and training of the drilling crew personnel during 2003.

On 27 March, KCA DEUTAG announced that it had been awarded an interim arrangement by BP, effective from 1 January, which will lead to a formal five year contract to carry out platform drilling services on the Central Azeri platform, offshore Azerbaijan. The estimated value of the contract is US $75 million, and drilling operations are scheduled to commence in mid 2004.

The formal signing of these three contracts is expected to take place within the next week.

Under a separate contract with BP, a KCA DEUTAG project team of approximately 60 engineers is currently completing the design of the West and East Azeri drilling facilities.

With the award of these three contracts, which complements KCA DEUTAG's existing Chirag 1 platform contract, the company will become the largest independent drilling contractor in the Caspian area, both offshore and onshore.