State-upstream operator, Kuwait Oil Company (KOC) has signed two contracts with the local United Precision Drilling Company (UDPC) worth a total of almost $130m for deep drilling rigs.

Both contracts were signed on 8 August.

The first, worth KD30.4m ($107.4m), covers the supply of 3,000 horsepower deep drilling rigs for KOC’s operations, as a replacement for KOC’s 36,048 rigs. The second contract, worth KD33.99m, covers the same rig supply.

Under the terms of the contracts, UDPC will supply and operate rigs for onshore drilling operations over a period of five-years.

UDPC won four similar deep drilling rig supply and operation deals in late 2010.