KCA Deutag hails international contract wins worth £85m

KCA Deutag has reported contract wins in Oman, Nigeria, Algeria and Russia
KCA Deutag news

Aberdeen-based KCA Deutag (KCAD) has announced a series of onshore contract wins worth £85.1million.

Work has been secured by the drilling contractor within international oil and gas hubs including Russia, the Middle East and Africa.

Last year it completed a £480million takeover of rival firm Dalma Energy’s business in Oman and Saudi Arabia.

The firm said today this has been followed by a series of contract extensions totalling seven years for five rigs in Oman, along with a short term deal for another rig.

KCAD also secured work in Nigeria, where it is seeing “increasing activity”.

A rig there has secured a one year contract, along with a further year’s extension option.

Meanwhile a three-month drilling deal was awarded for another rig, with KCAD pursuing “many other active opportunities”.

The firm also reported contract wins in Russia and Algeria.

President of KCAD’s Land division, Simon Drew, said: “We are delighted to announce these contract awards and look forward to delivering value for our clients through safe, effective and trouble-free operations.”

In its third quarter 2018 results in November, KCAD reported a pre-tax loss of £90.3million thanks to the continuing effects of a “slow recovery”, particularly in the Land Drilling business.

At the time, chief executive Norrie McKay said it will “take some time” for investment levels to increase enough to bring a boost to the international markets.

Along with the Dalma takeover in April last year, KCAD announced partnerships with India’s Kavin Engineering and Azerbaijan’s Socar AQS to boost the firm’s presence in those markets.