Abbot Group Plc subsidiary KCA Deutag has been awarded a preliminary works agreement for platform drilling services by Sakhalin Energy Investment Co. Ltd. The company announced the award today at the Offshore Europe 2003 oil and gas exhibition and conference in Aberdeen, Scotland.
The agreement is expected to lead to the award of a formal contract valued at $250 million. KCAD will provide engineering support to SEIC's design contractor for the LUN-A and PA-B drilling facilities.
Neal Stevenson, group director of business development for KCAD, points to the company's North Sea experience as the reason for the latest award. The ability to drive down costs in the North Sea was a selling point, Stevenson said. Another plus is the companies successes in harsh environment conditions. "KCA Deutag is exporting skills and expertise developed in addressing the demand in the North Sea," Stevenson said.
According to Alasdair Locke, executive chairman of Abbot, "Sakhalin Island is a key development area for KCA Deutag." KCAD has 40 platforms worldwide, with 30 in the North Sea, making the company the largest platform drilling contractor in the region.
With the latest award, KCAD is moving into new waters, but the company says it has not lost focus on the North Sea. "We are encouraged th the new entrants into the North Sea," Stevenson said. The small independent companies will be challenged by intermittent operations. The next new challenge in the North Sea will be helping independents to profitably produce smaller fields, he said.