GE Oil & Gas (NYSE: GE) announces a new contractual service agreement (CSA), valued at approximately $180 million, with Transocean. The agreement, signed at the end of 2016, aims to further maximize productivity and lower operating costs for Transocean.
As a pioneer of new business models and performance-based service agreements, GE will provide condition-based monitoring and maintenance services for pressure control equipment on seven of Transocean’s rigs over the next 10 to 12 years.
Transocean Jackup rig. Photo credit: Transocean
“This agreement builds on the new service model we introduced last year to address today’s industry shift toward maximizing productivity and lowering operating costs while also maintaining operating flexibility,” said Lorenzo Simonelli, president and CEO, GE Oil & Gas. “When cost and risk are at the top of operators’ minds, we share the responsibility by investing in equipment uptime and performance.”
The agreement leverages GE’s digital capabilities to shift from event and calendar-based maintenance to condition-based monitoring and maintenance. Working with GE on parts forecasting and service scheduling will allow Transocean to optimize operations by proactively planning and minimizing between-well maintenance.
“We are evolving our business and enhancing our digital offerings to match the needs of our customers,” Simonelli said. “Digitization truly is the single largest step change for the industry and the foundation for its future.”
