GE forms first-ever BOP service contract agreement

Diamond Offshore signed a contractual service agreement with GE Oil & Gas, allowing the hydrocarbons wing of GE company to buy back four blowout preventers (BOP) aboard four of its drillships for USD 210 million, the US companies announced today.

The deal will have Diamond leasing the assets from GE, which will have full accountability for the BOPs. This entails onboard personnel who will perform management of parts, overhaul and repair, continuous certification, data monitoring and overseeing change. The service agreement is for 10 years.

“Subsea equipment repair and maintenance is the single largest cause of nonproductive time across our industry, resulting in great expense to both drillers and operators,” said Marc Edwards, President and CEO of Diamond Offshore.

The new contract is an attempt by GE to break into the logistics game of the oil and gas industry. Technicians will also be able to see how the technology works in real time, giving them necessary data to improve their design.

“We are changing the game by building the new blowout preventer service model for the industry. With improved control, maintenance and servicing of our equipment, we are putting skin in the game and guaranteeing performance,” Lorenzo Simonelli, the president and CEO of GE Oil & Gas, stated.

The drillships are currently located in the Gulf of Mexico.

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