The contracts are aimed at the provision of pressure control equipment services
With the energy market’s rout taking a slight stabilization turn following the positive outcome of the latest OPEC talks with other oil producers, energy companies are back in form again, ramping exploration programs and entering into energy contracts. As per latest updates by Reuters, Schlumberger Limited. (NYSE:SLB) has won a couple of ten year contracts with Transocean LTD (NYSE:RIG) aimed at the provision of pressure control equipment services. Value of the contracts stands close to $350 million.
According to the terms of one contract, Schlumberger has to manage the risers in the Gulf of Mexico owned and operated, Cameron, a Schlumberger company. The management would include inspection, storage, maintenance as well as recertification on the rigs.
On the other hand, the second contract would provide for a range of solutions needed for the maintenance and servicing of pressure control equipment and blowout preventer systems for nine rigs that come under Transocean. Via these contracts, a decrease in total ownership cost for the pressure equipment would occur. In addition, the uptime related to the pressure control equipment would also be soared. Solutions that would enhance the technicality, operations and commercial aspect of the pressure equipment would also be provided via these agreements.
Hunter Jones, President of Drilling systems at Schlumberger stated: “This agreement leverages the core competencies of Transocean and Schlumberger’s capabilities as an original equipment manufacturer. Our leadership in technology, hardware and software along with the ability to enhance the value of the data provides a foundation for improving operational performance and availability of pressure control equipment.”