UK-based drilling, engineering, and technology services company KCA Deutag has landed multiple new onshore and offshore drilling assignments and extensions, spanning different continents, which expands its total backlog by $900 million.
These multimillion-dollar contracts and extensions for land and offshore drilling projects entail work across Saudi Arabia , Oman , Pakistan , Angola , and Europe . The UK firm explains that its new land contracts and extensions amount to more than $431 million, including extensions for four rigs in Saudi Arabia collectively valued at $352 million, with contract durations ranging from five to ten years, adding up to 25 years.
Moreover, the company’s existing contacts for three rigs have been prolonged in Oman, with two rigs getting two more years and one securing a nine-month extension, bringing a combined value of $50 million.
The drilling player has also won a new contract for a rig in Germany valued at over $10 million, ensuring nearly a year of work. In addition, two new contracts in Pakistan, worth over $20 million, provide three years of activity.
Simon Drew , President of Land at KCA Deutag, commented: “These awards demonstrate our leading position and further cement our reputation as the partner of choice for both land and offshore drilling. The contracts announced provide continuation of services with key customers for the KCA Deutag group, based on strong safety performance and service delivery.
“As such, the contracts are testament to the performance of the KCA Deutag teams in each country and demonstrate our proven track record of developing and empowering those local leadership teams to provide in-country value, maximise local employment opportunities and support skills development.”
Furthermore, two offshore contract extensions, worth $87 million, will enable the firm to work for six years on projects in Europe and Angola. KCA Deutag has also inked contracts in Norway for two awards announced in March 2024, adding over $410 million to the firm’s backlog.
The UK player’s business combination with Helmerich & Payne (H&P) was revealed in July 2024. The U.S.-headquartered rig technologies and drilling solutions player’s acquisition of KCA Deutag is valued at almost $2 billion.
Upon completion, anticipated by year-end, the merger was expected to bolster H&P’s global onshore drilling position, increase rig count, and improve the combined company’s standing in America and the Middle East, seen as two of the world’s most prominent oil and gas-producing regions.