KCA Deutag sells Nigerian drilling business for $18 million
(World Oil) — KCA Deutag announced that it sold its land drilling business in Nigeria, including five drilling rigs, for $18 million to Nigeria-based Geoplex Drillteq Limited.
KCA Deutag, a drilling, engineering and technology provider, says the sale is part of its strategy to optimize the business and focus investments in core markets including the Middle East.
Geoplex Drillteq Limited, a full oil services” company, will take over operations while receiving technical support services from KCA Deutag to ensure proper service delivery for clients. There are plans to support KCA Deutag employees and contractors to transfer to the new operation or take up other opportunities with the company.
The sale aligns Nigeria’s Local Content Act, which encourages increased indigenous ownership and utilization of assets, KCA Deutag 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 $100 million in building four new land rigs against a long term, 10-year commitment,” said Simon Drew, president of land drilling for KCA Deutag.
“We have developed a positive working relationship with Geoplex during our discussions and are confident in Geoplex’s capability as an organization and will work with them to provide technical support for continued delivery to our clients and people.”
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