Oceaneering International, Inc. (NYSE:OII) announced that it has secured an order from BP Exploration Operating Company Limited (BP), a subsidiary of BP plc (NYSE:BP), to supply umbilicals for BP’s Quad 204 field development west of Shetland, United Kingdom. This order adds over $45 million to Oceaneering’s Subsea Products backlog.
The order is for two riser and five infield umbilicals totaling approximately 19 kilometers (11.8 miles) in length. These will be used to supply electrical and hydraulic power and chemical injection to subsea trees and production manifolds located at the Quad 204 drill centers.
Product manufacturing is planned to be performed in three phases at the Oceaneering Umbilical Solutions facility in Rosyth, Scotland. The first phase is scheduled to commence in the first quarter of 2013 and the third phase is anticipated to be completed in the second quarter of 2015.
This order is the first issued by BP under a ten-year term Global Subsea Hardware Umbilical Agreement executed between BP and Oceaneering during the third quarter of 2012. Under the agreement, Oceaneering has committed to supply umbilicals and ancillary equipment and services to BP at mutually agreeable order specifications and terms.
Source: Oceaneering International