Drilling, engineering and technology provider KCA Deutag has been able to extend a number of contracts and secure additional options, but is also close to completing the acquisition of Saipem’s land rig business.
The contract extensions, according to a company statement, are valued around $112 million, and are primarily related to land rigs in Saudi Arabia and Oman. In Saudi Arabia, the company has been awarded multiple one-year extensions worth a combined total of $35 million. In Oman, a one-year contract with a new client, which includes a further one-year option, in addition to contract extensions and options with existing clients on multiple rigs have delivered an additional $70.5 million.
In Europe, KCA Deutag has been awarded almost $6 million in new contracts in Germany and the Netherlands.
“We are pleased to have secured multiple new contracts and extensions, building on our successful record of safe, efficient delivery for our valued clients in key markets. These contract wins and extensions reflect our strategic focus on growth, particularly in the Middle East, powered by Well of Innovation technologies and energy efficient operations,” said KCA Deutag President Land Simon Drew.
The company further noted that work continues to close out the acquisition of Saipem’s land rig business, reflecting its focus on growth in key markets in the Middle East. To remind, earlier in June, KCA Deutag signed a Sale and Purchase Agreement (SPA) to acquire Saipem onshore drilling business (Saipem Onshore Drilling) for a total consideration payable at closing of $550 million in cash and 10 percent equity interest in the group.
Upon completion of the acquisition, the combined group will manage a leading global onshore drilling business generating over 50 percent of its EBITDA from the Middle East with more than 11,000 employees globally. Total backlog will increase by $1.6 billion to $7.2 billion.
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