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KCA Deutag completes sale of Nigeria rigs

As part of its growth strategy to optimise the business and focus investments in core markets such as the Middle East, global drilling, engineering and technology provider KCA Deutag has completed the sale of its land drilling business in Nigeria for $18m. The sale includes five drilling rigs.

Geoplex Drillteq Limited has purchased the rigs and will take over operations while receiving technical support services from KCA Deutag to ensure proper service delivery for clients. Arrangements have 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.

Simon Drew, President Land, commented: "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 $100m 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 organization and will work with them to provide technical support for continued delivery to our clients and people."