Oceaneering Announces Corrosion and Inspection Management Services Contract Award
HOUSTON, Sept. 3 /PRNewswire-FirstCall/ — Oceaneering International, Inc. (NYSE: OII) announced today that in June it obtained a corrosion and inspection management services contract from BP Exploration (Caspian Sea) Ltd. (BP) with estimated revenue of approximately $45 million over an initial three-year term. At the end of the initial term, BP has two consecutive options to extend the contract for a period of one year each.
The assets covered by the contract include BP’s onshore Sangachal Terminal and offshore production facilities in Azerbaijan, and export pipelines in both Azerbaijan and Georgia. This contract builds on an existing relationship with BP Exploration Operating Company Ltd. to provide inspection and integrity management services on its facilities in the United Kingdom.
Under the terms of the contract, Oceaneering will provide risk-based inspection plans derived from detailed corrosion assessments. These assessments will be based on both conventional non-destructive testing (NDT) and specialized inspection techniques. Conventional NDT includes magnetic particle, dye penetrant, and visual inspections. Specialized inspections utilize more advanced technologies, such as non-invasive ultrasonic corrosion mapping, which provides a reproducible fingerprint, and long-range ultrasonics, which provide a rapid and reliable technique for assessing the condition of small and large-diameter pipes. Furthermore, Oceaneering will provide corrosion trend and defect analyses to support facility maintenance and repair plans and to meet compliance requirements.
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, Oceaneering International, Inc. cautions that statements in this press release which are forward looking involve risks and uncertainties that may impact Oceaneering’s actual results. The forward-looking statements in this press release include the statement concerning the estimated revenue of $45 million from the contract referred to herein. Although Oceaneering’s management believes that the expectations reflected in those forward-looking statements are reasonable, Oceaneering can give no assurance that those expectations will prove to have been correct. Those statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including, without limitation: changes in the customer’s operational plans or schedule; contract cancellation or modifications; and difficulties executing under the contract. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see Oceaneering’s annual report on Form 10-K for the year ended December 31, 2008 and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.
Oceaneering is a global oilfield provider of engineered services and products primarily to the offshore oil and gas industry, with a focus on deepwater applications. Through the use of its applied technology expertise, Oceaneering also serves the defense and aerospace industries.
SOURCE Oceaneering International, Inc.