KCADeutag secures further $45mn in project financing from Oman Arab Bank

Muscat: KCADeutag, a leading drilling, engineering, and technology partner based in the United Kingdom has secured an additional $45 million of project financing from Oman Arab Bank (OAB). This builds upon the previous $45 million acquired in 2023.

The total funding package of $90 million supports the construction of four highly automated new build rigs, the first to be constructed in Oman. As previously announced, KCADeutag will own and operate the rigs having secured ten-year contracts.

The first two rigs have been completed and commenced operations at the beginning of the year, while the construction of the remaining two rigs is underway and is expected to be completed in 2024. The project financing will be repaid over 10 years following completion.

Sulaiman Al Harthi, Chief Executive Officer at OAB, commented: “This project strengthens our relationship with a key industry player in the world and demonstrates our commitment to financing high-value projects that drive economic progress. It also underscores our belief in the power of partnerships and collaboration, enabling us to deliver solutions that not only meet our client's evolving needs but also drive mutual value creation.

Sulaiman Al Hinai, Chief Wholesale Banking Officer at OAB, added: “We take great pride in onboarding  KCADeutag with our new Corporate Internet Banking (CIB) platform. Our new CIB Platform is a key milestone in our ongoing digital transformation journey.

Jan Hetherington, Head of Corporate Development and Treasury at KCA said: “We are delighted to be working with a local bank as we build and deliver these four highly-automated rigs in Oman. Our ongoing presence in the country, 10-year contracts, and enviable footprint in the Middle East region has made this project finance deal possible.
He went on to say, “We look forward to continue to work with OAB, and will review opportunities to further strengthen the banking relationship as construction progresses and the remaining two rigs commence operations later this year.”