KCA Deutag bags onshore drilling contracts in Middle East & Latin America

By Shilpa Annie Joseph, Official Reporter
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KCA Deutag secures drilling contracts
Rep. Image | Courtesy: Zbynek Burival @ Unsplash

KCA Deutag announced the award of land drilling contracts in Oman, Saudi Arabia, Peru, and Bolivia, totaling $204 million.

UK-based KCA Deutag is a drilling, engineering, and technology company working onshore and offshore with a focus on safety, quality, and operational performance.

In Oman, the company has secured contracts for five rigs with one customer worth a combined value of $181 million, which amounts to a total of 18 years of additional work.

According to the statement, further success in the Middle East saw the company also secure three short-term extensions in Saudi Arabia with a total value of $16 million.

Simon Drew, President of Land at KCA Deutag, said that, “These awards demonstrate our leading position in the Middle East and the positive momentum we’ve experienced in Latin America since the completion of the acquisition in May last year.”

“The deployment of our BESS technology in Oman will provide our customer with improved energy efficiency and a reduction in carbon emissions while demonstrating our commitment to delivering customer-centric solutions that support sustainable drilling operations through technology, automation, and energy optimization,” Drew added.

As part of the agreement in Oman, two of the rigs are being upgraded with Kenera Battery Energy Storage Systems (BESS) to save energy and reduce carbon emissions. Designed and manufactured by Kenera, the group’s technology and energy transition business, the BESS transforms the rigs into hybrid-powered assets.

The battery system is charged from the existing rig generators and increases their efficiency to deliver power during peak loads, reducing the consumption of diesel and carbon emissions by approximately 15 percent.

The addition of the BESS technology to these rigs advances the company’s carbon reduction focus in Oman and follows the deployment of a grid container to another rig in the fleet, which will enable it to be powered from the electrical grid instead of diesel generators.

In Latin America, KCA Deutag secured a six-month extension of a rig in Bolivia worth around $6 million, and the finalization of two short-term workover contracts in Peru.

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