KCA wins fresh work with oil giant Statoil

scottish driller KCA Deutag has won more work with Norwegian oil giant Statoil after another contractor called it in to upgrade a platform.

Aberdeen-based KCA said the latest three-year contract was worth £16.5 million. The work will be carried out by the firm’s engineering division in Bergen and will employ up to 35 staff.

Bjarne Tresselt, business manager at the engineering division, said it was a “major contract win” that would strengthen the group’s position as a provider of drilling upgrades.

“This is the biggest contract win in terms of engineering man-hours for the company in Norway and we consider it to be an acknowledgement of our capacity and competence,” he said.

KCA, which was sold to an American private equity firm by oil tycoon Alasdair Locke in 2008, won a $700m (£430m) contract from Statoil to operate oil rigs in Norwegian waters earlier this year. The Scottish firm has worked with the Norwegian energy giant for nearly 30 years.

The latest deal has been signed with energy services group Aibel and is part of a long-term cooperation agreement.

KCA Deutag also revealed yesterday that it has been awarded a contract for drill-related services directly from Statoil. It did not put a value on the deal, but said the work in the seas off Norway could last for up to ten years and covers the management, maintenance and logistics of drilling equipment.