KCA Deutag bags $550 million in new platform drilling contracts
Oil and gas services company KCA Deutag has secured a contract award and two contract extensions for platform drilling services in Russia, UK, and the Norwegian North Sea.
The combined value of these awards is approximately $550 million and will account for thirteen years of contract backlog, KCA Deutag said on Wednesday.
KCA Deutag’s Offshore division secured a five-year contract, with a further two two-year extension options, with a major oil company offshore Russia. The award will see the local team continue to deliver platform drilling services including rig maintenance, warehousing, inventory procurement, and management for three offshore platforms.
The award allows KCA Deutag to continue to build on its integrated service model by directly managing other offshore services and providing multiskilled crews.
In addition, the UK and Norway teams were also secured two separate contract extensions with longstanding customers.
As oil and gas operators look for ways to accelerate the realisation of their ESG goals, KCA Deutag is looking to play a pivotal role in this transition. In the case of these recent awards, the focus has been on the assessment, monitoring, and reduction of carbon emissions by means of operational and equipment optimisation, the company explained.
KCA Deutag also continues the rollout and implementation of its +veDRILL technology, aimed at driving performance improvement and digitalisation of the offshore worksite.
Ole Maier, President of Offshore and RDS, said: “Through multiskilling of our expert rig crews, we are pleased to be able to extend our services on these platforms, alongside continuing to deliver the highest standards of operational performance for our customer.
“At the same time, we continue our development and deployment of our Well of Innovation technologies to improve the value we deliver to our customers. This contributes to our ability to secure contracts such as these.
“Alongside this, we have and are developing new technologies as we leverage our group-wide operating, manufacturing and engineering capabilities to make our operations more energy-efficient while at the same time move into renewable energy applications as the energy transition gathers pace and scale”.