Leading global drilling and engineering contractor, KCA Deutag, announces that it has been awarded two contracts with BP Exploration (Caspian Sea) Limited ("BP"). These contracts have a combined value of approximately $360m for the initial contract or $1bn including all options.

The first contract has been awarded to our offshore division and is for the operations and maintenance of seven platforms operated by BP in the Caspian Sea pursuant to Product Sharing Agreements. These are the East, West and Central Azeri, Deepwater Gunashli, West Chirag, Chirag and Shah Deniz installations. The initial term is for three years with two three year extension options.

The second contract has been awarded to RDS, KCA Deutag's engineering and design specialist, and is for engineering support services on all drilling packages for projects in the Caspian Sea that are operated by BP from the Azerbaijan, Georgia and the Turkey Region. This contract is effective from 1st December 2015 to 30th September 2017 with two extension options of one year each.

KCA Deutag employs approximately 750 people in Azerbaijan, 75 per cent of who are Azerbaijani nationals. The group has been operating in the country since 1995 when it was awarded its first drilling contract and has a twenty year history of working with BP in Azerbaijan providing design, construction support, platform services, commissioning and brownfield engineering services to BP-operated platform drilling operations.

Rune Lorentzen, President of Offshore and RDS said: "These major contract awards build on KCA Deutag's long standing relationship with BP, and recognise our efforts to deliver both continuous improvement and value to our client. We are committed to providing the highest quality of service and our engineering and design team will work closely with the operations and maintenance team to ensure that we achieve that."

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.

About BP

Over the past 10 years, BP has invested more than $90 billion in the U.S. – more than any other energy company. BP is a leading producer of oil and gas and produces enough energy annually to light nearly the entire country for a year. Employing more than 18,000 people in all 50 states, BP supports nearly 200,000 additional jobs through all of its business activities.