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KCA Deutag creates Joint Venture in Kazakhstan

KCA Deutag Group together with OGCC JSC KazStroyService are pleased to announce the creation of Joint Venture KCA Deutag Kazakhstan LLP – a 51% KCA Deutag Drilling GmbH and 49% OGCC JSC KazStroyService Company.

KCA Deutag has over 130 years of drilling, engineering and technology experience both onshore and offshore. Currently, KCA Deutag operates 76 land rigs, 29 platforms and 2 jack-ups. The KCA Deutag group includes one of the largest companies for engineering and design of offshore drilling systems, RDS, as well as the leading land rig builder and equipment manufacturer, Bentec, and is actively playing its role in the energy transition.

Always striving to maximise local content, KCA Deutag operated one of its drilling rigs in Kazakhstan for more than 13 years, entering the country in 2001 to provide Engineering and Drilling Services for the North West basin of the Caspian shallow waters.  The scope of work included engineering of surface infrastructure, provision of a heavy arctic drilling rig and the operation and management of the artificial islands from which drilling operations were conducted. KCA Deutag stayed active in Kazakhstan upon contract expiry, and in 2020 a tendering strategy was approved for the purposes of country re-entry and business development. With increasing local content requirements in the oil and gas sector as a major government policy priority, KCA Deutag sought out a strong partnership with a local company in Kazakhstan.

OGCC JSC KazStroyService is one of the largest EPC companies in the Caspian region, providing design, engineering, procurement, construction, testing and commissioning services with a focus on hydrocarbon projects onshore and offshore, industrial projects, civil infrastructure and operations and maintenance. It is a preferred EPC company of Kazakhstan with highest safety and quality standards and the largest equipment base in the CIS region.

The Joint Venture Agreement concluded in early 2021 between the two companies led to the formation of KCA Deutag Kazakhstan LLP, which will focus on PSA projects on the territory of Kazakhstan, covering engineering, procurement and leasing of drilling rigs, as well as their operations and maintenance, re-construction and modification. 

Simon Drew, President of Land Drilling at KCA Deutag said: "We see Kazakhstan as a key growth market, and we are delighted to re-energise our presence in the country. Together with our Joint Venture partner we are committed to delivering the highest standards of operational performance.  We will also be seeking opportunities to demonstrate our ability to provide engineering, services and technology solutions that our potential customers need in both oilfield and energy transition projects in the future.".

Sabit Zhanassov, General Director of JSC OGCC KazStroyService said: "This joint venture will strengthen the position of two large oilfield service companies and will provide high quality of services, which will have a positive effect on the market environment in Kazakhstan. Thanks to the international experience of our partner, we will train local specialists and offer new solutions in industry development".