Oceaneering Scoops BP Contract Offshore Angola

Published at 08:25AM - 28/10/16

Oceaneering International announced today it has received a two-year extension from a unit of BP Plc to work offshore Angola.

Under the agreement signed, the company will get a two-year extension of the Field Support Vessel contract entered for work on block 18 and 31.

“We are pleased to have secured this contract extension with BP. In support of this contract, we are also providing a wide range of vessel-related subsea services, including remotely operated vehicles, tooling, asset integrity and diving services,” Oceaneering Chief Executive Officer (CEO) Kevin McEvoy, said.

Oceaneering Scoops BP Contract Offshore Angola

The two-year extension for the offshore work is expected to end in January 2019 and involves two blocks operated by BP in the deep and ultra-deep waters of the Congo basin.

Under the contract term extension, Oceaneering’s multi-service vessel Ocean Intervention III will remain chartered through April 2017 with five option periods for further extension of one month each.

Oceaneering Scoops BP Contract Offshore Angola
Oceaneering’s Ocean Intervention III

Additional vessels and services, if any, would be provided during the remaining period of the contract, on as-needed basis, Oceaneering informed in a statement.

“This extension strengthens our long-term commitment in Angola, which we will see as a vital deepwater market for Oceaneering’s services and products,” the CEO stated further.

Oceaneering Hit by Declining Service Demand

Oceaneering also announced its third quarter results today, posting operating results in line with expectations, despite the decline in the number contracted floating rigs.

“This prevailing market condition required us to reassess the number of ROVs we have in our fleet,” the CEO explained.

At the end of September, Oceaneering had a fleet of 279 vehicles with a 52% utilisation rate.

“In light of the current shrinking available drill support market, we remain focused on maintaining our ROV market share on contracted rigs and the rigs most likely to return to work,” he said.

However, the company saw an increase in diving services and survey work in the Gulf of Mexico, while asset integrity operating income also improved, primarily as a result of a smaller workforce.