Petroleum Development Oman (PDO) is to award KCA Deutag Energy LLC a 10-year contract for the provision of drilling services with four new highly automated rigs that will be built in the Sultanate of Oman
The contract comes with options to extend for a further two years and, with those options included, has a total value around US$550mn.
The innovative rigs will be constructed by International Drilling Technology Co. (IDTEC) in Oman, the group's local rig manufacturing and servicing company, which has already acquired the necessary expertise and certifications for rig construction. The technologically advanced rigs will be the first of their kind to be constructed in the country, marking a step change in the rig building capabilities in country.
KCA Deutag Energy LLC will invest approximately US$100mn to build the new rigs in Oman and expects to commence operations in the second half of 2023. Around 40% of this value will be spent with Omani suppliers, including local small and medium enterprise (SME) companies.
The project has high in-country value (ICV) and will provide many benefits to the local economy and community in terms of job creation, training and upskilling of Omani personnel focusing on engineering, operation and maintenance of mechanised and automated rigs, to achieve 100% Omani crews after four years of operation. The ICV benefits will continue throughout the life of the contract, securing employment for approximately 190 jobs.
The rig design and all key components will be provided by KCA Deutag's new business unit, Kenera, through its Bentec engineering and manufacturing centre. The modern rigs will be highly automated, fast-moving units designed for safe and efficient drilling operations in well-established Omani fields and will benefit from the latest technologies from KCA Deutag's Well of Innovation.
Mohammed Al Rashdi, PDO well engineering director, said, "Awarding this contract to KCA Deutag Energy LLC is a key step in establishing local rig manufacturing capabilities, especially for mechanised rigs capitalising on PDO’s journey to modernise its rigs fleet. This will also come with an opportunity to train and develop local Omanis in the design and manufacture of mechanised rigs, in addition, to supporting Omani SMEs and providing job opportunities for Omanis. It is a step change in the country to have locally manufactured light rigs for PDO."
