KCA DEUTAG Wins $120 Million Contract in Angola

KCA DEUTAG Drilling has been awarded a major contract by Cabinda Gulf Oil Company (CABGOC), a Chevron Texaco subsidiary operating offshore Angola.

This significant contract, valued at $120 million, is the first to be awarded to KCA DEUTAG in Angola. The contract involves the design, engineering, procurement, construction, commissioning and operation of a high specification, new build platform rig for CABGOC's Benguela Belize field development, which is part of Chevron Texaco's deep-water development in Block 14. The installation of the rig will be followed by a five-year operation and maintenance period.

Block 14 is located some 50 miles offshore Angola in approximately 1400 feet of water and will be developed by a drilling and production platform consisting of a compliant tower, and drilling and production topsides. It will have 42 well slots and, consequently, a significant primary drilling program.

Of the $120 million contract value, approximately $60 million relates to KCA DEUTAG's selected subcontractor, National Oilwell, the specialist drilling equipment supplier and rig fabricator, based in Houston, Texas.

Engineering design, procurement and construction activity will be undertaken in Houston, commencing in March 2003. Following a design phase of seven months and a construction and onshore commissioning phase of 19 months, the rig will be transported and installed by CABGOC's other contractors, prior to final offshore commissioning by KCA DEUTAG. Commencement of operations is currently scheduled for around mid 2005. The five-year operation and maintenance period will involve significant training and investment in Angolan personnel - the majority of which KCA DEUTAG intends to carry out in Angola.

Maurice White, Chief Executive of KCA DEUTAG, commented:

"This significant contract has extended our presence into an area which we have identified as being a key market in the development of our core international drilling operations. It takes KCA DEUTAG into the West African ultra deep-water area, in which we believe there will be significant future projects.

"In addition, it strengthens our relationship with Chevron Texaco with whom we operate both in the North Sea and onshore in the Middle East."