(MENAFN- Muscat Daily) KCA Deutag, one of the largest international drilling contractors, headquartered in Aberdeen, Scotland, has been awarded a five-year-plus-options contract by BP for the construction and operation of three new build fast-moving land rigs in Oman.
The rigs will be manufactured by Bentec, KCA Deutag's manufacturer of drilling rigs and equipment, KCA Deutag said in a press statement on its website. ''The contract value is to the order of US$220mn for the initial contract, and US$340mn including options,'' the company said.
KCA Deutag currently operates seven rigs in Oman, ranging from 750HP to 3,000HP. ''This contract represents an excellent business growth opportunity in a country with ambitious plans to further increase its oil and gas production levels. The specification of the new fast moving desert rigs will allow KCA Deutag, over the contract duration, to demonstrate its commitment to continuous performance improvement in both safety and drilling, which will, in turn, reduce the total drilling costs for BP,'' the company said.
Andy Hendry, president of KCA Deutag's land division, said, ''BP Khazzan is a very high profile development within Oman and the broader Middle East. Given the desire for best-in-class drilling efficiency and safety, we are extremely excited to be partnering with BP on this project.''
''KCA Deutag is also looking forward to promoting local content and in-country value for Oman in the way that we work. This is a very significant land drilling contract for KCA Deutag and I am especially proud of the many employees and functional teams that contributed to its award. Drilling will commence in quarter four of 2014,'' Hendry said.
In December last year, Oman and BP had signed a gas-sales agreement and an amended production-sharing agreement for the development of the Khazzan filed in Block 61, with the British oil giant as operator. The total investment for the full-field development of Khazzan will be around US$16bn, including investment made to-date in the appraisal of the resource and the early well-test progra
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