$900m rig deal sealed by KCA

KCA DEUTAG, the drilling and engineering contractor with an operational base in Aberdeen, has won a $900 million (£588m) contract from oil giant Statoil to run and maintain two big new rigs for the Norwegian Continental Shelf.

The contract is initially for eight years, with the option to extend by four periods of three years, taking the overall potential period to 20 years and contract value to $2.2 billion.

Norrie McKay, chief executive at KCA Deutag, said he was “delighted” to announce the significant award from Statoil, the Norwegian energy giant that it has worked with for almost 30 years.

Rune Lorentzen, chairman of KCA Deutag Drilling Norge, called the contract a “key milestone”. The group has said it wants to become the leading driller for the Norwegian Continental Shelf.