Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) announces the award of a sizeable(1) three-year frame agreement, with four one-year options, for six North Sea clients: Chevron North Sea Limited, Dana Petroleum (E&P) Limited, Hess Denmark APS, Nexen Petroleum U.K. Limited, Talisman Sinopec Energy UK Limited and TAQA Bratani Limited.
Under this frame agreement, Subsea 7 will continue to provide Diving Support Vessel (DSV) services on a year-round basis, as well as associated project management and engineering services to over 40 facilities in the North Sea. This award follows on from the original frame agreement awarded in 2009. One of the key advantages of this collaborative approach is that it allows all operators to benefit from lower costs realized through the sharing of resources.
The scope of work includes diver and ROV inspection, repair and maintenance, subsea construction and decommissioning services, and dedicated long-term project support. Project management and engineering work will be managed from Subsea 7's Aberdeen office.
Phil Simons, Vice President UK and Canada, said: "We are pleased to announce the signing of this important long-term agreement. The continuing relationships we have with each of our DSVi(2) clients is testimony of the shared objectives maintained since the original award, and its success in generating increased value opportunities. It represents our focused commitment to providing the right and cost-effective engineering solutions."
(1) Contract term: Subsea 7 defines a sizeable contract as being between USD 50 million and USD 150 million. Frame agreement estimated values are not included in backlog or revenue until call-off contracts are signed.
(2) DSVi: Diving Support Vessel initiative
