The design and fabrication of the rig will be undertaken by Bentec, KCA Deutag's drill rig and equipment manufacturer.

KCA Deutag already operates a 1120 kilowatt rig in Brunei, the T-201, which has been Shell's land rig of the year for four of the past six years.

This contract represents a business growth for KCA Deutag because Brunei has ambitious plans to increase its onshore oil and gas production levels.

"This new rig for BSP is very high profile within Brunei, allowing exploration and development of deeper horizons," KCA Deutag land division president Andy Hendry said.

He called the win a "significant land drilling contract" for the company.