Leading global drilling and engineering contractor, KCA Deutag, announces that it has been awarded a contract extension by Sakhalin Energy Investment Company Ltd. (Sakhalin Energy) for platform drilling services on its three platforms offshore Sakhalin Island in Russia.

The four year contract extension is effective from 1 June 2017 to 31 May 2021.

It also covers the provision of a full supply chain service including drilling and rig maintenance on the Lunskoye-A, Piltun-Astokhskoye-B and Molikpaq platforms, warehousing, management of spare parts and procurement.

KCA Deutag employs approximately 300 employees in Sakhalin, around 80% of whom are Russian nationals. The group's offshore operations are supported by an onshore operation in Yuzhno-Sakhalinsk and a supply base in Kholmsk where our logistics hub and drill pipe management facilities are located. The group has been contracted with Sakhalin Energy since 2003.

Rune Lorentzen, President of Offshore and RDS said: "We are delighted to have been awarded this contract extension, which builds on a long standing relationship with Sakhalin Energy, and are very much looking forward to continuing to deliver the highest standards of operational performance."

Terje Løvereide, KCA Deutag Country Manager in Sakhalin said, "This is great news for the company and the operation locally. It has been achieved thanks to the dedicated efforts of a highly professional team delivering quality performance both on and offshore."

About KCA DEUTAG

KCA DEUTAG is one of the largest international drilling contractors. The company employs 8,000 staff in more than 22 countries and it had revenue in 2012 of US$1.7 billion.
KCA DEUTAG is currently the drilling operations contractor on 39 offshore platforms worldwide and owns and operates a fleet of mobile offshore drilling units consisting of 2 jack-ups and 3 self erecting tender barges. The company also owns and operates a fleet of more than 60 land drilling rigs.