KCA DEUTAG awarded US$225million jack-up contracts

abarrelfullabarrelfull wrote on 12 Aug 2013 19:56
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2007

KCA DEUTAG has been awarded a 36 month contract by CNR International (Olowi) Ltd for the jack-up drilling rig Ben Avon (formerly named Songa Tellus), working in the Olowi field, offshore Gabon. The contract, which has a commencement window of between 1 April 2008 and 30 June 2008, is valued at in excess of US$170 million.

This contract will significantly enhance KCA DEUTAG’s existing operations in Gabon, where the company currently has two land rigs on contract to Addax Petroleum. It will also further strengthen the company’s relationship with CNR, an important client for KCA DEUTAG, with whom it has five platform rigs under contract in the UK North Sea.

KCA DEUTAG has also entered into a binding letter of intent, in respect of the Ben Avon, with a leading independent operator. The contract has a value in excess of US$55 million and is expected to commence in May 2007, running until the commencement of the CNR contract mentioned above.

These contracts confirm the fixing of all three of Abbot’s jack-up rigs on long-term contracts. The Ben Loyal (Songa Jupiter) is contracted to Pemex for two years from September 2006 and the Ben Rinnes (formerly Songa Neptune) has recently signed a contract with CABGOC for three years, commencing in the second quarter of this year. The combined value of these four contract awards is approximately US$560 million.

Commenting on the contracts, Alasdair Locke, executive chairman of KCA DEUTAG parent company Abbot Group, said:
“These contracts further strengthen our position in the international MODU market, which we entered last May with the acquisition of Songa Drilling. We continue to see a positive trend on day rates and demand for our services across the range of all our business activities, providing further transparency of forward revenues for the Group. In addition, jack-up rig utilisation in the international market remains extremely strong and we continue to see attractive opportunities in all our areas of operation and certainly in excess of the market’s capacity to undertake them. We are confident of delivering improving results for the foreseeable future.”


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