KCA Deutag wins contract for 2 slider rigs for Lukoil

Posted on 02 June 2014

KCA Deutag‘s land division has been awarded a contract worth more than $90 million by Russia’s second largest oil company, Lukoil, for the supply of two arctic cluster slider rigs in the northern republic of Komi, Russia. The first rig deployed was an existing rig from within KCA Deutag’s Russian operations, and the second will be a newbuild.

The three-year contract for KCA Deutag’s arctic drilling rigs T-505 and T-506 comes with two one-year options, which could see the project continue into 2019. This deal will see the creation of 40 new jobs within the Komi region, which will be filled by skilled local nationals and bring KCA Deutag’s Russian operation up to 1,240 staff.

The design and fabrication for the T-506 rig, an HR-5000 series rig, will be undertaken by Bentec, KCA Deutag’s manufacturer of drilling rigs and equipment, at its Tyumen facility in Russia.

“From our entry into Russia in 2002, we have been extremely successful in building a business founded on the highest possible standards of safety and drilling efficiency,” Andy Hendry, President of KCA Deutag’s Land Division said. “This contract is a real testament to our ongoing commitment to delivering safe and effective operations in Russia while expanding the fleet with delivery of another first class Bentec rig built specifically for the Russian environment.”

“These contracts demonstrate the breadth of our capabilities, from innovation and technical expertise to our ability to operate across the globe in the most challenging environments,” Norrie McKay, CEO of KCA Deutag said. “With a growing team, a strong market presence and a proven track record, we are well placed to capitalize on future opportunities that arise within the region.”

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