Muscat – Oman’s leading hydrocarbon exploration and production company, Petroleum Development Oman (PDO), announced the successful launch of the sultanate’s first locally manufactured well drilling rig on Monday.

The sultanate’s first locally made drilling rig is the first of four highly automated rigs designed and constructed by KCA Deutag’s Kenera business unit, which will fulfil a ten-year drilling operations contract secured by PDO in January 2022.

The rig was unveiled at a ceremony held under the auspices of H E Mohsin bin Hamed al Hadhrami, Undersecretary of the Ministry of Energy and Minerals, at the KCA Deutag facility in Nizwa, where the rigs are being constructed at Kenera’s International Drilling Technology Co (IDTEC) facility, which is KCA Deutag’s in-country manufacturing and servicing company.

‘This remarkable drilling rig, the first of four to be produced by KCA Deutag for PDO, underpins our unwavering commitment to enhancing in-country value and boosting Oman’s self-sufficiency in the energy sector,’ PDO said in a post on X, formerly Twitter.

Designed and constructed by Kenera, the highly automated, fast-moving 1250hp rigs are tailor-made with a focus on digitalisation, utilising the latest technologies to deliver safe, efficient, and sustainable drilling operations for PDO, KCA Deutag said in a statement posted on its website.

Automation of key equipment is enabled via the rig’s central operating system, the cyber drilling chair (synapse), and bespoke software that enhances remote operations capability, improving safety and performance.

As a partner to PDO since 1964, the KCA Deutag Group has a long history in Oman and has demonstrated its commitment to the growth of the economy in Oman with an investment of approximately $100mn for Kenera to build the new rigs in-country.

The high in-country value (ICV) of the project has seen the company spend approximately 40% of its investment in subcontracting significant work, including construction and commissioning, to small and medium-sized Omani businesses, ensuring the expansion of the local economy.

Simon Drew, president of land drilling at KCA Deutag, said, “We are pleased to have welcomed PDO and ministry officials to our local facility to showcase the first of four technologically advanced rigs being constructed by Kenera in Oman. We take immense pride in delivering bespoke customer-centric solutions, and this project, with its strong emphasis on digitalisation and automation, demonstrates the capability we have in-country and across the group. As we continue to embrace cutting-edge technologies, these new rigs will deliver lower emissions and contribute to sustainability and energy optimisation in Oman.”

He said, “We believe this project holds the highest ICV of any rig construction project in the history of Oman. Our commitment to providing in-country value in Oman is demonstrated by our investment in the economy and people, with Omani nationals representing 92% of our local workforce. This also extends to establishing the next generation of talent through the launch of a summer internship program in partnership with Omani universities for 16 undergraduates.”

PDO’s external affairs and value creation director Eng Abul-Amir al Ajmi said, “PDO remains committed to supporting and leading the ICV initiative. We are dedicated to our role in contributing to the growth and prosperity of Oman. Indeed, we cannot emphasise enough the importance of ICV, particularly for our nation’s economy. The significance of ICV goes beyond corporate responsibility; it is the bedrock upon which our national economic aspirations are built.”

“We are pleased with our collaboration with KCA Deutag and look forward to continuing this partnership that will contribute towards fulfilling our ICV and sustainability targets.”