Dril-Quip Enters Into FEED Contract and Frame Agreement for Sea Lion Project Subsea Production Systems
Friday 19 October 2018
Dril-Quip, Inc. announced that Dril-Quip (Europe) Limited, its wholly-owned subsidiary based in Aberdeen, Scotland, has entered into a Front End Engineering and Design (FEED) Contract and Frame Agreement with Premier Oil Exploration and Production Limited to provide the subsea production systems for the Sea Lion Phase 1 Development located offshore the Falkland Islands. The Frame Agreement replaces the previously announced letter of intent.
The current estimated value of the equipment portion of the scope of work is $207 million which includes plans for up to 30 subsea production systems, including wellheads, horizontal trees, tubing hangers, control systems, associated production and injection manifolds and subsea umbilicals. Under the Frame Agreement, it is envisaged that Dril-Quip will provide vendor financing for up to 30% of the equipment portion of the contract. Formal contract award will be subject to agreement of a definitive contract and Premier taking a final investment decision.