HOUSTON, Feb. 8, 2016 /PRNewswire/ -- Diamond
Offshore Drilling, Inc. (NYSE: DO) and GE Oil & Gas (NYSE: GE)
today announced the offshore drilling industry's first-of-its-kind
contractual service agreement (CSA) that transfers full
accountability for BOP performance to GE Oil & Gas. In this
Pressure Control by the Hour™ model, Diamond Offshore will
compensate GE Oil & Gas only when the BOP is available. This
10-year collaborative arrangement for GE's engageDrilling™
Services showcases a new way of thinking to drive continuous
improvement in deepwater drilling.
The arrangement will include GE purchasing the BOP systems
aboard Diamond Offshore's four drillships, currently located in the
U.S. Gulf of Mexico, for a total
of $210 million.
"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. "In today's market, we have to make the economics of
offshore drilling more competitive for our clients. The purpose of
our new Pressure Control by the Hour service model is to
incentivize all parties to prioritize equipment reliability and
availability for the ultimate benefit of our customers."
"To deliver a solution that improves drilling efficiency now and
in the future, collaboration is essential," said Lorenzo Simonelli, President and CEO,
GE Oil & Gas. "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."
The GE Oil & Gas engageDrilling™ Services offering
enhances BOP system availability by transferring the maintenance
and service of pressure control equipment to GE Oil & Gas. This
includes on-rig GE Oil & Gas personnel, management of parts,
overhaul and repair, continuous certification, data monitoring, and
management of change. This new arrangement is a
performance-based alliance that leverages the scale of GE data,
predictive analytics, insights and continuous certification,
positioning GE as a long-term commercial, operational and technical
partner.
Under the new service model, Diamond Offshore will begin
capturing data through GE's monitoring and analytics solutions.
Over time, this will enable condition-based monitoring and
maintenance, which will drive proactive decision-making and
planning to address the requirements of industry standards for
drilling systems. By transferring the maintenance and service of
well control equipment to GE Oil & Gas, Diamond Offshore is
simplifying operations and optimizing between well maintenance to
reduce the frequency and duration of downtime.
"This is a key part of GE's business strategy to collaborate
with drilling contractors and operators to push the boundaries of
our industry," said Simonelli. "Our new CSA model addresses the
current needs of drilling companies, and establishes the roadmap
for smart, predictive, condition-based services and maintenance in
our digital-industrial future."
"We look forward to partnering with GE Oil & Gas to lead the
way forward in our industry," said Edwards. "By combining Diamond
Offshore's operational excellence with the guaranteed performance
of GE's BOPs, we are increasing our competitiveness in the
market."
About Diamond Offshore
Diamond Offshore is a leader
in offshore drilling, providing contract drilling services to the
energy industry around the globe. Additional information and
access to the Company's SEC filings are available at
www.diamondoffshore.com. Diamond Offshore is owned 53% by Loews
Corporation (NYSE: L).
About GE
GE (NYSE: GE) is the world's Digital
Industrial Company, transforming industry with software-defined
machines and solutions that are connected, responsive and
predictive. GE is organized around a global exchange of knowledge,
the "GE Store," through which each business shares and accesses the
same technology, markets, structure and intellect. Each invention
further fuels innovation and application across our industrial
sectors. With people, services, technology and scale, GE delivers
better outcomes for customers by speaking the language of industry.
www.ge.com
About GE Oil & Gas
GE Oil & Gas is inventing
the next industrial era in the oil and gas sector. In our labs and
factories, and in the field, we constantly push the boundaries of
technology to solve today's toughest operational & commercial
challenges. We have the skills, knowledge and technical expertise
to bring together the physical and digital worlds to fuel the
future. Follow @GE_OilandGas.
Forward-Looking Statements
Statements contained in
this press release that are not historical facts are
"forward-looking statements" within the meaning of the federal
securities laws. Such statements include, but are not limited
to, statements concerning expected results or benefits to be
achieved from the contract and arrangement, timing of application
to specific drilling units, expectations of future costs and
performance and other statements that are not of historical
fact. Forward-looking statements are inherently uncertain and
subject to a variety of assumptions, risks and uncertainties that
could cause actual results to differ materially from those
anticipated or expected by management of the companies. A
discussion of the important risk factors and other considerations
that could materially impact these matters as well as the
companies' overall businesses and financial performances can be
found in each company's respective reports filed with the
Securities and Exchange Commission, and readers of this press
release are urged to review those reports carefully when
considering these forward-looking statements. Copies of these
reports are available through each company's website. These
risk factors for Diamond Offshore include, among others, risks
associated with worldwide demand for drilling services, level of
activity in the oil and gas industry, renewing or replacing expired
or terminated contracts, contract cancellations and terminations,
maintenance and realization of backlog, competition and industry
fleet capacity, impairments and retirements, operating risks,
regulatory initiatives and compliance with governmental
regulations, casualty losses, and various other factors, many of
which are beyond the Company's control. Given these risk
factors, investors and analysts should not place undue reliance on
forward-looking statements. Each forward-looking statement
speaks only as of the date of this press release. Diamond
Offshore expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any forward-looking
statement to reflect any change in the company's expectations with
regard thereto or any change in events, conditions or circumstances
on which any forward-looking statement is based.
Contacts:
Diamond Offshore Drilling
Darren Daugherty
Director, Investor Relations
(281) 492-5370
GE Oil &
Gas
Lindsey Benton
External Affairs
Leader
(832) 506-8974
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SOURCE Diamond Offshore Drilling, Inc.; GE