Under the terms of the deal KCA Deutag land division will supply two arctic cluster slider rigs in the northern republic of Komi, Russia.

The first rig deployed has been an existing rig from within KCA Deutag's Russian operations and the second will be a newbuilt rig.

The three-year contract of KCA Deutag's arctic drilling rigs T-505 and T-506 comes with two one-year options, that could extend the contract to 2019.

The design and fabrication of the T-506 rig, a HR-5000 series rig, will be undertaken by KCA Deutag's rig maker Bentec at its Tyumen facility in Russia.

KCA Deutag land division president Andy Hendry said the company had entered Russia in 2002 and had been successful in building its business there.

"This contract is a real testament to our ongoing commitment to delivering safe and effective operations in Russia while expanding the fleet with delivery of another first class Bentec rig built specifically for the Russian environment," he said.