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Oceaneering Win ROV Work from Statoil

Oceaneering Win ROV Work from Statoil

View all news from: Oceaneering International Services Limited
View directory entry for: Oceaneering International Services Limited

03 June 2016

Oceaneering International has signed a framework agreement with Statoil for the maintenance, modification and storage of the Norwegian company’s remote-operator vehicle (ROV) and related subsea equipment.

Under this agreement, Oceaneering will also manufacture and sell ROV tools and related subsea equipment to the Norwegian state-owned operator.

"While our results for the first quarter reflect the challenging times we face in this low oil price market environment, we are pleased that each of our operating segments remained profitable”, said Oceaneering’s Chief Executive Officer, Kevin McEvoy, in its latest first quarter report.

The agreement has a duration of two years with the option for a two or three-year extension. As well as this, the deal includes options for maintenance, modifications, mobilisation and offshore operations with subsea tools and equipment.

In the end of last month, Oceaneering announced lower revenues than in the previous year in its first quarter results, which it said reflected the impact of the decline in crude oil prices over oilfield spending levels.

"Compared to the first quarter of last year, quarterly ROV operating income was down substantially on 33% lower revenue, resulting from 28% fewer days on hire and a 7% reduction in revenue per day on hire”, McEvoy explained.

"In spite of the challenging market environment, we continue to believe that our liquidity and cash generating capability enable Oceaneering to maintain market position and be ready for the inevitable market recovery”, he added.