CONTENTS

1 CONTENTS . Message from the CEO. 2. Message from the CEO As we approach the end of We strive to be market Because of you, KCA Deutag 2013, and celebrate KCA leaders in our field, driving meets and indeed often exceeds Deutag's first 125 years in the agenda and setting our customers' expectations. Safety & news business, I would like to take a industry standards, whether Our safety record is strong. This moment to reflect with pride on in health and safety or is due to the quality of your skills, the standards and values which protecting the environment. expertise and commitment, 4. 3. Our history have positioned our group as Our values are at the core of which sets you out from the a global market leader and our desire to continue to be crowd. pioneer in the oil industry. better at everything we do. 6. Our top priority is to keep you Our staff These standards and values We continue to broaden safe.

2 Our perfect day' is for underpin our ability to the group's offering to you to go home safely to your KCA Deutag supports consistently deliver the highest customers, delivering where families every single day. As 8. quality of work our customers possible total end-to-end we move into the next phase young people have come to expect across solutions from innovative of our growth that will remain every business unit. In 2013 design and manufacture unwavering. D a de los Muertos this culminated in KCA Deutag through to trouble free signing the biggest contract in operations, maximising the So to the future and the next 125. The remarkable its history in a deal worth over group's financial return. years; as we all know predicting 10. growth of our $ with global giant, Statoil this is no easy task but as we offshore division and our Land Drilling division Integral to our growth stand here today our business securing a contract worth in are our engineering and is robust and activity levels are The evolution of excess of $220m with a global manufacturing operations, buoyant.

3 Over the coming year, Bentec oil major in the Middle East. Our RDS and Bentec respectively. we plan to continue to grow, customers' faith in our ongoing These businesses enable consolidating our position in A proud land ability to deliver what they need us to get involved in new those key areas where we have drilling history when they need it demonstrates projects early in the process, a market leading position and that, working together with the scoping our customers' expanding into new markets Our KCA heritage, our same common goal and values, requirements and making and territories. However, RDS future we can beat KCA Deutag a key it's not just about winning the competition supplier in land new contracts. It's about the It felt like a family / at the highest drilling and offshore personal development of every IMS level.

4 The future services. one of us as we step forward to of our business work together with the same Operational integrity has never been Fundamental to our objective of being the best, brighter. continued success is following safe working practices you, our employees. while adhering to our core values. Celebrating 125 years As a valued and talented member of the KCA Deutag family, can I thank you for your hard work in 2013 and ask you CONTACT US to join me in looking forward to 2014 and the exciting times We value your comments and which lie ahead for us all as KCA. if you have any material you Deutag enters the next phase of would like considered for the its development. next edition, please contact: Norrie McKay CEO, KCA Deutag All submissions are considered but may not be printed due to lack of space. 1898 Heinrich Lapp 1919 Company name changed to Deutsche went public Tiefbohr-Aktiengesellschaft, DEUTAG.

5 1888. Drilling Company Heinrich Lapp' 1905. founded in Aschersleben, Drilled first oil well in its Germany own concession in Wietze, Germany 2. SAFETY NEWS. Celebrating safe, effective and KCA Deutag awarded trouble free operations contracts worth over T-2000. $165m KCA Deutag's T-2000 land rig in Russia has reached a significant KCA Deutag has signed two significant contracts safety milestone, having achieved nine years without any Lost valued at more than $165m USD. Time Incidents during drilling, rig moving and skidding operations. The first contract is a five year operations and The rig was the first to start operating for the company in Russia maintenance programme for platforms offshore and can withstand exposure to temperatures ranging from +35 to Angola with mutually agreed options for an -49 degrees Celsius.

6 Extension. KCA Deutag has had an operational presence in Angola since 2004 and this contract This achievement demonstrates the team's commitment to expands its Angolan business from one operational working together, its focus on health and safety and environmental string to three. protection. The second award is a 30 month extension to an existing drilling and maintenance services contract for a platform in Norway. This work further complements KCA Deutag's business which began drilling in the Norwegian Continental Shelf in the 1970s and now has around 1,100 employees. Where in the world As a global company it is important that we attend, exhibit and speak at international conventions and events to demonstrate our capabilities to current and potential clients. Here are some of the events we are looking to attend.

7 Britannia On 9th October 2013 the Britannia drill crew achieved seven years without a Lost Time Incident. Throughout this time they January 21st 23rd have completed two successful drilling campaigns with all the Offshore West Africa - Accra, Ghana uncertainties of up manning and down manning, which as we know are stressful times for individuals. Times that can be prone to incidents occurring, but with team work and strong leadership January 22nd 24th the Britannia crew have successfully overcome these challenges. Offshore Convention Myanmar - Yangon, Myanmar During that period there have also been numerous wireline and coil tubing campaigns conducted January 27th 29th throughout the rig, including a very Myanmar Oil & Gas Summit Yangon, Myanmar difficult 2 7/8 coil tubing recovery with the assistance of a specialised snubbing company.

8 Extra crew January 27th 28th members were sourced from other operations to assist with this work. Africa Oil & Gas - London, UK. Even when on shut down mode they have completed their work January 28th 29th safely and effectively showing excellent awareness that even on a rig that is on maintenance mode they are still vigilant of the Arctic Oil and Gas Summit - Oslo, Norway dangers. 1921 1927 Drilled in Solikamsk, USSR. DEUTAG shares taken over by C. Deilmann Bergbau 50th Anniversary und Tiefbau GmbH 1938 Owned 28 rigs and drilled over 1 million feet 3. Our history Over the last 125 years we have Our corporate history is not without In 1993 Bentec was created by been laying down strong roots which challenges and the 1940's presented Deutag, which allowed us to expand have grown throughout the oil and some perilous times for Deutag.

9 The total our portfolio and further develop the gas industry. The unification of two collapse of Germany had resulted in the business into rig manufacturing. companies - KCA Drilling and Deutag to loss of the facilities in Ascherslebenn become one company, making us one of and all rigs sited in Eastern Germany and The formation of the company into the world's leading drilling contractors. Eastern Europe. With little equipment what we recognise as KCA Deutag With a fleet of more than 100 onshore remaining, Deutag re-established its today began in 2001. The Abbot and offshore rigs, operating in some of headquarters in Bad Bentheim in 1946, Group which owned KCA Drilling then the world's harshest environments, we allowing them to take advantage of purchased Deutag; signifying the arrival continue to build on the legacy of the opportunities for expansion in the nearby of KCA Deutag and creating a major founding companies from where our oil and gas fields.

10 Drilling contractor. story began. During the 1950's Deutag grew rapidly - With both companies well established The original drilling company Heinrich being awarded contracts in Spain, Greece, with a reputation for excellence; KCA. Lapp', named after its founder, was Turkey, and the Spanish-Sahara (modern Deutag was set to succeed along the established in Germany in 1888, drilling day Morocco). In 1957 KCA (Keir Cawder lines set by our founder companies, their first well in Weitze, Germany in 1905. Arrow) Drilling were founded in Scotland. continuing to develop and expand into Lapp himself retired in 1918 and in 1919 As KCA Drilling, we commenced onshore a leading drilling contractor in the North the company was renamed: Deutsche drilling in Turkey, and achieved further Sea. Tiefbohr Aktiengesellschaft Deutag. success in the late 50's by expanding into drilling and workover operations in Waha, Libya To develop our business into the In the 1920's, the company was taken over (where we have operated for over 50 years).