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KCA Deutag secures nearly 200 jobs with $550 million Oman contract

© Supplied by KCA DeutagKCA Deutag oman

Aberdeen-headquartered KCA Deutag has landed a contract worth $550 million (£408m) in Oman, securing nearly 200 jobs.

Petroleum Development Oman, headed up by former Shell North Sea boss Steve Phimister as managing director, has awarded the 10-year deal to KCA Deutag.

The contract covers drilling services including four new automated land drilling rigs to be built in-country. Combined with options to extend for a further two years, the deal has a total value of $550 million.

KCA Deutag Energy will invest around $100 million to build the new rigs in the Sultanate of Oman and expects to begin operations in the second half of 2023.

Around 40% of the value will be spent with Omani suppliers by International Drilling Technology Co. (IDTEC), a business which is majority owned by the KCA Deutag Group as its local rig manufacturing and servicing company.

The firm said the in-country value benefits will continue for the life of the project, securing employment for around 190 jobs.

Simon Drew, President of KCA Deutag’s Land Operation, said: “KCA Deutag has been operating in Sultanate of Oman and working for PDO for almost 60 years and we are delighted to have been awarded this opportunity to continue this long-standing relationship.

“This investment demonstrates our commitment to PDO and the Sultanate of Oman to deliver outstanding In-Country Value with the first four rigs constructed locally.

“It is also validation of our excellent safety record, incident-free operations and technological performance – as well as an opportunity to deliver energy-efficient rigs that benefit from our fuel optimisation technology and are capable of adopting grid and hybrid technologies in the future.”

KCA Deutag oman © Supplied by KCA Deutag
Steve Phimister, MD of PDO and former Shell North Sea boss (centre-right) at the contract signing ceremony with Simon Drew, KCA Deutag President (centre-left)

Petroleum Development Oman is state-owned by the Sultanate of Oman, with a 60% interest, with partners Shell (34%), Total Energies (4%) and PTTEP (2%).

Former Shell North Sea boss Steve Phimister oversaw a signing ceremony for the contract with KCA Deutag, having left Shell for PDO in July last year.

Mohammed Al Rashdi, PDO Well Engineering Director, said: “Awarding this contract to KCA Deutag Energy LLC is a key step in establishing local rig manufacturing capabilities, especially for mechanised rigs capitalizing on PDO journey to modernize its rigs fleet.

“This will also come with an opportunity to train and develop local Omanis in the design and manufacture of mechanised rigs, in addition, to supporting Omani SMEs and providing job opportunities for Omanis. It is a step change in the country to have locally manufactured light rigs for PDO.”

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