C.A.T. Oil AG: Early and Significant Success in 2014 Tendering Campaign
C.A.T. oil AG, one of the leading providers of oil and gas field services in Russia and Kazakh-stan, today announced an early and significant success in its 2014 tendering campaign. For a three-year period starting in 2014 the Company has been awarded a tender worth EUR 281 million (based on a rouble-to-euro exchange rate of 45) for a sidetrack drilling contract by its long-standing customer Lukoil. C.A.T. oil has thus successfully marketed 55% of its current sidetrack drilling operating capacities for 2014-16. In addition C.A.T. oil’s subsidiary CAT-OBNEFT has succeeded in securing tenders for conclusion of further side-track drilling contracts worth EUR 22 million for 2014 by Tomskneft-VNK and Slavneft-Megionneftegaz. As the secured tenders reflect successful marketing of more than 70% of the Company’s existing sidetracking capacities for the current year, C.A.T. oil is perfectly placed to accomplish its 2014 tendering campaign in the coming weeks.
Manfred Kastner, CEO of C.A.T. oil, commented: “The tendering campaign is one of the most exciting events in the course of the year. It not only regularly provides us with a detailed insight into industry trends, market sentiment and mid-term production plans of our customers. The progress of the tendering campaign also reviews our standing in the market.”
Manfred Kastner continued: “As three-year contracts are less common in the Russian oilfield service market, the tender award by Lukoil underscores not only quality and efficiency of C.A.T. oil’s services but also customers’ growing appetite for multi-year contractual arrangements going forward. The major three-year contract once again confirms the strong demand for our high quality services. Negotiations on additional tenders are well underway and we will re-port further good news in the coming weeks of the tender season.”
The contracts’ underlying sidetracking services will be accomplished primarily in the Kogalym, Megion and Tomsk regions in West Siberia.