Another IOC, KCA Deutag Sells Assets In N’Delta For $18m

Global Drilling, Engineering and Technology provider, KCA Deutag, based in Port Harcourt, Rivers State, has completed the sale of its land drilling business in Nigeria for $18million.
This is in fulfilment of the international oil company (IOC’s) growth strategy to optimise the business and focus investments in core markets such as the Middle East.
The sale includes five drilling rigs.
An indigenous oil producing company, Geoplex Drillteq purchased the rigs, and would take over operations of Deutag’s business portfolio in the Niger Delta.
According to the terms of the sale, KCA Deutag would continue to provide technical support services to the new operators to ensure proper service delivery for clients.
Arrangements have also been put in place to support KCA Deutag employees and contractors to transfer to the new operation or take up other opportunities with the company.
The sale reflects Nigeria’s Local Content Act, which encourages increased indigenous ownership and utilisation of assets.
Speaking on the deal, President, Land Drilling, KCA Deutag, Simon Drew said, “After a successful history of operations in Nigeria, the sale of these assets allows us to build our business in the Middle East – where we currently operate 40 rigs – and follows the recent announcement that we have secured a contract with Petroleum Development Oman to invest around $100million in building four new land rigs against a long term, 10-year commitment.
“We have developed a positive working relationship with Geoplex during our discussions and are confident in Geoplex’s capability as an organisation and will work with them to provide technical support for continued delivery to our clients and people.”

By: Nelson Chukwudi