Oilfield services provider Oceaneering International, Inc. (OII) announced that it has received a contract extension from one of its largest customers, BP plc (BP).
Oceaneering had initially received a three-year Field Support Vessel Services contract from the British oil company in Dec 2011. The contract, which came into effect from Feb 2012, facilitated two extension option periods of one year each. BP has exercised both these options under the contract.
Per the contract extension, Oceaneering will continue providing project management as well as engineering and vessel services till Jan 2017 for work at BP operated Blocks 18 and 31, offshore Angola. Oceaneering added that the vessels Ocean Intervention III and the Bourbon Oceanteam 101 will continue operations during this extension period.
The initial contract also had provision for a third vessel that Oceaneering was required to provide if needed by BP. Oceaneering added that Bourbon Evolution 803 is the third vessel that is being provided under the contract, which has been contracted through Jan 2015.
Oceaneering mentioned that in accordance with the contract terms, it will provide light subsea construction, maintenance and repair services for BP’s current and future subsea infrastructure. The company stated that it will also supply remotely operated vehicle (ROV) tooling, asset integrity and installation and workover control system services.
Houston, TX-based Oceaneering primarily serves the global offshore oilfield industry by providing engineered products and services. The company also offers inspection work, subsea products and services.
Currently, Oceaneering carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. market in the next one to three months.
Meanwhile, one can consider better-ranked players from the same industry such as RPC Inc. (RES) and Emerge Energy Services LP (EMES). Both these stocks have a Zacks Rank #2 (Buy).
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