Helmerich & Payne announced a new offshore operations and maintenance contract with Turan Drilling & Engineering, a joint venture between SOCAR and KCA Deutag (now part of HP). The agreement, made with bp, covers eight offshore platforms in the Caspian Sea, is effective March 2026, and is worth up to $1 billion over a five‑year term with three one‑year extension options.
The deal adds a substantial, long‑term revenue stream to HP’s Offshore Solutions segment, which already manages platform rigs and offshore labor contracts worldwide. The contract’s value and duration provide predictable cash flow that can offset the company’s recent Q1 2026 loss of $97 million and adjusted loss of $0.15 per share, which were driven by a $103 million non‑cash impairment charge.
Management highlighted the strategic importance of the renewal. Trey Adams, HP president, said the contract “reflects the strength of our long‑standing partnership with bp and the consistent performance our teams have delivered in the Caspian region over multiple decades.” Ole Maier, senior vice president of offshore, added that the renewal “establishes a refreshed operational relationship that reshapes the traditional operator‑contractor model into a true one‑team framework.”
The contract aligns with HP’s broader strategy to expand its international footprint and leverage its FlexRig technology and automation capabilities. The acquisition of KCA Deutag in January 2025 has already broadened HP’s presence in the Middle East, and this renewal with bp reinforces the company’s position in the Caspian region, a key growth area for offshore operations.
Overall, the new contract provides HP with a stable, long‑term revenue source that supports its Offshore Solutions segment and strengthens its competitive position in the offshore drilling services market. The deal underscores HP’s focus on long‑term, contract‑based services that deliver predictable activity profiles and enhance earnings stability in a cyclical industry.
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