Cooper Cameron Continues Preferred Supplier Status From BP
Cooper Cameron Corporation's Cameron division has entered into a second five-year preferred supplier agreement with BP Exploration, a unit of BP p.l.c., to provide subsea wellheads, Christmas trees and associated "through life of field" services for their U.K. Continental Shelf assets. The services and equipment for this agreement will be provided through Cameron's manufacturing and aftermarket facilities in Aberdeen, Scotland and Leeds, England. This is a continuation of the existing agreement, signed in 1996, under which more than 100 subsea trees were awarded to Cameron. That agreement was a performance-based contract that focused on overall well cost reductions against agreed-upon benchmarks.
Cooper Cameron Chairman, President and Chief Executive Officer Sheldon R. Erikson said, "We are pleased that BP has again chosen Cameron as the preferred supplier of subsea trees for its current and future U.K. developments. This five-year agreement is expected to be a significant contributor to Cameron's revenues and will call for up to 70 subsea trees and associated services with a total value of as much as $200 million." Erikson noted that as specific orders are received from BP under this agreement, they will be included in the summary of orders and backlog incorporated in the Company's quarterly earnings reports.
BP UK Upstream Supply Chain Manager Granville Clutterbuck commented, "BP has a strong track record of successfully developing subsea facilities in challenging North Sea environments. Alignment with suppliers has been a major contributor to the success of this work. The new contract, which is focused on delivering both technology development and cost benefits, will help to ensure continued competitiveness of hydrocarbon production in the U.K. Continental Shelf."