KCA DEUTAG, the international drilling contractor, has been awarded a US$ 50 million land drilling contract from Russian oil and gas operator Arctic Gas Co (a Company participated by Eni and Enel).

The contract, which is for an initial three years with extensions, saw KCA DEUTAG's rig T-505 commence operations in the fourth quarter 2008, in the Severo-Samburgskoye field in Novy Urengoy, western Siberia.

Holger Temmen, Chief Executive of KCA DEUTAG, said: "Russia is a key strategic growth area for our business and this contract further strengthens our position in that market, where our HR-5000 series of rigs have continued to make inroads since their introduction in 2006.

"We continue to build on our relationships with key clients and potential clients in Russia, based on our track record of performance improvement and delivering results on time and on budget."

This latest contract follows that awarded earlier this year, by Burgaz, Gazprom's drilling subsidiary, for KCA DEUTAG's rig T-500 for a drilling campaign in the Novyi Urengoi field in the Yamburg region of west Siberia.