Dril-Quip Enters Into Letter of Intent for Subsea Production Systems for Sea Lion Project
July 13 2018 - 6:00AM
Dril-Quip, Inc. (NYSE:DRQ) today 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.”
About Dril-Quip
Dril-Quip is a leading manufacturer of highly
engineered drilling and production equipment for use onshore and
offshore, but which is particularly well suited for use in
deepwater, harsh environment and severe service applications.
Forward-Looking Statements
This press release contains certain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements
regarding the execution of a definitive contract, final investment
decision approval, vendor financing, provision of equipment and
services, the expected scope of the contract and the expected
timing of work. Forward-looking statements are based upon
certain assumptions and analyses made by the Company in light of
its experience and perception of historical trends, current
conditions, expected future developments and other factors. These
statements are subject to risks beyond the Company’s control,
including, but not limited to, the volatility of oil and natural
gas prices and cyclicality of the oil and gas industry, the
Company’s international operations, decisions made by the Company’s
customers and suppliers, operating risks, and other factors
detailed in the Company’s public filings with the Securities and
Exchange Commission. Certain material factors that could
cause the Company’s actual results to differ from those
contemplated in this press release include, but are not limited to,
the amount of products actually ordered pursuant to the contract,
the Company’s ability to successfully manufacture and deliver, and
the customer’s acceptance of, the products ordered. Investors
are cautioned that any such forward-looking statements are not
guarantees of future performance and actual outcomes may vary
materially from those indicated.
Contact: Trever Ashurst, Manager – Investor
Relations (713) 939-7711
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