Dril-Quip, Inc. announced that Dril-Quip (Europe) Limited, its wholly-owned subsidiary based in Aberdeen, Scotland, has entered into a letter of intent with Premier Oil Exploration and Production Limited to provide subsea production systems for the Sea Lion Phase 1 Development located offshore the Falkland Islands.
The scope of work includes plans for 23 subsea production systems, including wellheads, trees, control systems, associated production and injection manifolds, subsea umbilicals and related services. It is intended that Dril-Quip will commence pre-sanction engineering work in August 2018. Formal contract award will be subject to agreement of a definitive contract and Premier taking a final investment decision. Dril-Quip would also provide vendor financing for a portion of the contract.
Blake DeBerry, President and Chief Executive Officer of Dril-Quip, stated, “Premier’s approach was to select a world-class team of contractors, and we are pleased to play an important role in this project. We believe that our new product development efforts with respect to our subsea tree products were instrumental in our ability to satisfy Premier’s requirements. Also, our strong balance sheet allows us to provide Premier with vendor financing for a portion of the contract which is consistent with our overall strategy. Dril-Quip (Europe) Limited has enjoyed a successful relationship with Premier that includes providing multiple subsea completion systems for Premier’s Catcher Area Development project in the North Sea. We look forward to continuing that relationship with Premier as this significant project moves forward.”