KCA Deutag, the global drilling, engineering and technology provider, has secured contract extensions and options totalling over $170M, with the majority focused on extensions with existing clients across core markets in the Middle East.
Two of the company's highly mobile 2000hp desert rigs in Oman have been awarded a total of three firm and four optional years contracts as an extension to their existing contracts. In total, these two contracts add revenue of around $80M during the firm and optional periods.
Further success has come for a rig in Saudi Arabia, with the award of a five-year firm extension valued at around $60M.
Additional wins for rigs in Kurdistan and Pakistan, both for continuation with existing clients, add another $19M revenue.
The balance of the work comes in Europe, with the work highlighting the flexibility of the fleet there, with one contract drilling in the traditional oil and gas market, one geothermal contract and the third drilling for salt extraction.
The extensions form part of KCA Deutag's growth strategy to optimise the business and focus investments in core markets such as the Middle East - where the Group currently operates 40 rigs - and follows previously announced contract wins and long-term commitments in the region.
KCA Deutag President Land Simon Drew commented: "Securing contract extensions with multiple clients demonstrates the high levels of trust and customer satisfaction we have worked hard to establish with our partners, through delivering strong safety and operational performance whilst offering a competitive overall package.
With increasing activity in our core markets, we are building a strong future for the KCA Deutag Group and helping to transform the energy industry with our Well of Innovation technologies and increasingly energy-efficient rigs."