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KCA Deutag awarded $197 million contracts in Oman, Saudi Arabia

KCA Deutag, a leading drilling, engineering and technology partner, has announced the award of $204 million of land drilling contracts in Oman, Saudi Arabia, Peru and Bolivia, further strengthening its position in core and key markets.

In Oman, the company has secured contracts for five rigs with one customer worth a combined value of $181 million which amounts to a total of 18 years of additional work.

Further success in the Middle East saw the company also secure three short-term extensions in Saudi Arabia with a total value of $16 million.

As part of the agreement in Oman, two of the rigs are being upgraded with Kenera Battery Energy Storage Systems (BESS) to save energy and reduce carbon emissions. Designed and manufactured by Kenera, the Group’s technology and energy transition business, the BESS transforms the rigs into hybrid-powered assets. The battery system is charged from the existing rig generators and increases their efficiency to deliver power during peak loads, reducing the consumption of diesel and carbon emissions by approximately 15%.

The addition of the BESS technology to these rigs advances the company’s carbon reduction focus in Oman and follows the deployment of a grid container to another rig in the fleet which will enable it to be powered from the electrical grid instead of diesel generators.

In Latin America, KCA Deutag continues to build upon the positive developments recently announced, with a six-month extension of a rig in Bolivia worth around $6m and the finalisation of two short-term workover contracts in Peru.

Simon Drew, President of Land at KCA Deutag, commented: “These awards demonstrate our leading position in the Middle East and the positive momentum we’ve experienced in Latin America since the completion of the acquisition in May last year.

“The deployment of our BESS technology in Oman will provide our customer with improved energy efficiency and a reduction in carbon emissions while demonstrating our commitment to delivering customer-centric solutions that support sustainable drilling operations through technology, automation and energy optimisation.”

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