KCA DEUTAG, the international drilling and engineering contractor, has been awarded a contract by HESS Oil France S.A.S with a total firm contract value in excess of €6.5 million.

The contract, which is for KCA DEUTAG’s Euro Rig class land drilling rig T-208, comprises the provision of drilling and related services for shale oil exploration campaign in the Paris Basin permits operated by HESS and its partner Toreador Resources Corp. The contract comprises the drilling of six firm wells in the Paris Basin permits with two further well options and is due to commence in February 2011.

Hans Schröer, KCA DEUTAG’s Country Manager for Europe, said: “There is a great deal of excitement about the prospects of unconventional oil and gas plays in mainland Europe, with the world’s leading oil and gas companies having acquired significant acreage in countries such as France, UK, Germany, Poland, Hungary, Romania and the Ukraine. Exploration campaigns are already underway and tender activity for suitable rigs has increased markedly in the last six months. Although there are a number of technical and commercial challenges to be addressed to prove the long term economics of these plays, the industry remains hopeful that unconventional oil and gas could represent the same transformational opportunity as it did for the gas supply and drilling sectors in the US.”

Industry sources cite that European unconventional gas resources alone could amount to approximately 1200tcf GIIP (gas initially in place). While at this very early stage industry estimates on numbers of wells and drilling rigs required vary widely, all point to a dramatic increase in the potential numbers of rigs required in Continental Europe. 

Source:  KCA DEUTAG