KCA Deutag Furthers Presence in S. East Asia with GTB Acquisition

- KCA Deutag Furthers Presence in S. East Asia with GTB Acquisition

Friday, August 05, 2011
KCA Deutag

KCA Deutag announced it has acquired Global Tender Barges Pte Ltd (GTB) by increasing its shareholding from 10 to 100%.

GTB based in Singapore owns three self-erect tender barges, the Global Emerald, Global Jade and Global Sapphire, which KCA Deutag has operated on behalf of GTB, since early 2008, under a management services agreement providing drilling operations, maintenance, procurement and other services connected with the offshore operations.

The transaction will contribute to KCA Deutag approximately US $115 million of annual revenues with substantial EBITDA and will further strengthen the financial profile of KCA Deutag.

The Global Emerald is currently on contract to Brunei Shell Petroleum until 1Q 2012 and the Global Sapphire to Petronas, Malaysia until 2014. The Global Jade has recently demobilized from a long term contract with Total in Indonesia and is bid on a number of long term contracts. The company is finalizing negotiations with one client and expects to be in a position to announce further contract awards in the coming few weeks.

The acquisition increases the scale of KCA Deutag's mobile offshore drilling units (MODU's) division, supplementing its three owned jackups and its other management contract on Triumph Drilling's self-erect tender rig, the Searex IX. It further strengthens KCA DEUTAG's presence in the strategic South East Asia and Mexican markets.

Holger Temmen, KCA Deutag's Chief Executive Officer commented, "This deal is a natural evolution for KCA Deutag, to acquire the remaining 90% equity, in assets that we have operated successfully on behalf of GTB for the last three and a half years. The three rigs have an excellent order backlog and bidding activity in the barge sector remains high, with a number of exciting long term opportunities in South East Asia and West Africa that may also justify investing in newbuild units. We are particularly pleased to be strengthening our relationship with three strategically important clients with whom we already have existing operations.

"South East Asia is attracting very large investments from our major oil company clients and provides exciting growth opportunities for companies in the oilfield services sector. KCA Deutag wish to substantially grow its presence in the region, both in the offshore, land drilling and engineering sectors. In addition to our barge activities, we currently operate our land rig T201 for Brunei Shell Petroleum and are currently executing a Front End Engineering Study for the drilling facilities on Woodside's Browse Field development offshore Western Australia for which we also hope to compete for the long term operations and maintenance contract."

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KCA Deutag Awarded FEED Contract for Browse LNG Development

- KCA Deutag Awarded FEED Contract for Browse LNG Development

Monday, June 06, 2011
KCA Deutag

KCA Deutag has been selected by Woodside Energy as one of two drilling contractors to carry out a major Front End Engineering Design (FEED) contract relating to a 3,000HP Modular Platform Drilling Rig (MPDR) for the Browse Liquefied Natural Gas (LNG) Development, offshore North West Australia.

The MPDR will be capable of drilling large bore gas wells up to 9,000m measured depth and of being transferred between Dry Tree Units (DTUs) based on a tension leg platform design. The DTUs will be positioned over the Calliance and Brecknock Fields, located approximately 270km from the Kimberley Coast, Western Australia.

Woodside is Australia's largest independent publicly traded hydrocarbon exploration and production company and one of the world's leading producers of LNG. The Browse LNG Development is a joint venture between Woodside, BHP Billiton, BP, Chevron and Shell.

FEED work has commenced and is being carried out by KCA Deutag's engineering division RDS in its London offices. It will take approximately six months to complete, include more than 30 persons, and involve interfacing with Woodside's two selected DTU contractors, Aker Solutions in Oslo and MODEC in Houston.

Neil Stevenson, KCA Deutag's Director, Business Development and Commercial, said, "This is an extremely important contract for KCA Deutag for a new client, and on one of the largest offshore LNG developments in the world. It also provides a major breakthrough into the expanding Australia onshore and offshore drilling market and builds upon our established presence in Southeast Asia. The award is very much aligned with our strategy of seeking involvement in new projects from the very early conceptual and front end stages and then being retained and accountable for the drilling performance of the rig during the operations phase."

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KCA Deutag Finishes Refinancing Process

KCA Deutag Finishes Refinancing Process

Thursday, March 31, 2011
KCA DEUTAG

KCA Deutag announced the completion of a refinancing process. The successful conclusion of this process has resulted in a transaction that strengthens the capital structure of the Company and ensures the long term financial stability of the business.

KCA Deutag will benefit from a strong institutional shareholder base led by existing shareholder Pamplona Capital Management together with funds and accounts managed by GoldenTree Asset Management, EIG Global Energy Partners, and BlackRock Financial Management. Pamplona is the largest shareholder and will have a majority on the new board. The shareholders have equitized mezzanine debt and injected $550 million of new equity into KCA Deutag's holding company Turbo Alpha, of which $300 million will be used to pay down senior debt and $250 million to further develop the business.

Simultaneously, KCA Deutag also confirms that non-executive chairman, Tim Summers, has stepped down following successful conclusion of the restructuring and has been replaced by Alex Knaster from Pamplona Capital. Non-executive directors Chris Hughes and Bob Ellis, appointed at the commencement of the refinancing also step down.

John Halsted of Pamplona commented, "We would like to thank Tim Summers, Chris Hughes and Bob Ellis for their leadership and guidance in steering the Company through a prolonged and intensive refinancing period. The Company has emerged with a significantly strengthened balance sheet, growth capital in the business and an experienced and knowledgeable shareholder base, committed to assisting the Company grow and capitalise on the many opportunities in its core international markets. As shareholders we are very excited about the prospects of the Company in a strongly improving market sector."

Despite the tough economic and trading condition, 2010 was a year in which KCA Deutag delivered robust financial, operational and HSE performance. Compared to our international and US peer group, KCA Deutag mitigated the effects of economic and industry factors better than most, emerging from 2010 with:

• An improved contract backlog. In our platform drilling division almost every contract was extended by negotiation or competitive tender, securing a revenue backlog of more than $1.5 billion, with the major highlight being the award by AIOC in Azerbaijan of a six-rig, five-year plus options contract.
• Continued high utilization in our international land fleet with strategic awards in both northern and southern Iraq and increased activity in Algeria and Nigeria.
• Maintained and extended contracts for all three owned jack-ups.
• Major contract extensions and awards in our engineering division RDS, relating to the UK, Azerbaijan, Newfoundland, Australia and Brazil.
• Significant success in KCA Deutag sister Company Bentec, the specialist rig and drilling equipment manufacturer, with the successful introduction of it's top drive and six rigs currently under construction.
• Best ever company-wide HSE performance.
• Continuous improvement in our operating efficiency and equipment uptime.

Holger Temmen, CEO of KCA Deutag, commented, "We are pleased to have completed the refinancing of the Company and to have emerged with a strengthened balance sheet and debt position. Throughout this period, KCA Deutag's operational and financial performance remained very robust. This performance has been recognized in the many contract extensions and awards given by our clients and our shareholders and lenders also demonstrated their faith in our business plan by approving the build of five new land rigs during 2010 for key growth markets in Europe, Russia and MENA.

"KCA Deutag's strategic presence in the major international markets has allowed us to outperform the majority of our drilling peer group, especially those exposed to the US domestic market. The opportunities developing in markets such as Russia, Iraq, Algeria and the emerging unconventional oil and gas plays in Europe leave me very optimistic about our medium term growth prospects.

"I would like to thank all staff in KCA Deutag, our clients and suppliers for their patience and understanding as we have progressed through the refinancing process. I am delighted that we can now completely focus on delivering the business plan and continuing to meet and exceed our clients' expectations for safe, effective and trouble- free operations."

Tethys Contracts Rig, Accelerates Drilling Program in Oman

Tethys Contracts Rig, Accelerates Drilling Program in Oman

Wednesday, March 30, 2011

Tethys Petroleum Ltd.

The development and exploration program on Blocks 3 and 4 onshore the Sultanate of Oman accelerates after a second drilling rig has been contracted. The first well being drilled by this rig is the Farha South-6 well ("FS-6") on Block 3.

The new rig, a 750 horsepower Deutag T-55, is operated by UK drilling contractor KCA Deutag Drilling Company. The new rig will be used alongside the Abraj 204 rig already in use on the Blocks, and currently drilling the SE-7 exploration well on Block 4.

"We are very pleased that the work program of Blocks 3 and 4 of Oman is been accelerated, underpinning both the extent of Blocks 3 & 4 areas which remain un-explored to-date as well as remaining geological uncertainties before a fully-fledged development plan is put in place.

Two rigs will allow a speedier drilling schedule for 2011," said Magnus Nordin, Managing Director of Tethys Oil AB.

FS-6 is drilled as a vertical well, designed to target the lower Barik formation. The drill site is located 140 meters southeast of well FS-4 and 750 meters south-southwest of well FS-3.

Tethys has a 30 percent interest in Blocks 3 and 4. Partners are Mitsui E&P Middle East B.V. with 20 percent and the operator CC Energy Development S.A.L. (Oman branch) holding the remaining 50 percent.