The contract expands an existing relationship with BP to provide inspection services on an increased number of BP's facilities. As a result, the average annual revenue of $30 million Oceaneering anticipates to earn during the initial term of the contract is 40 percent more than the revenue received in 2005 for providing inspection services to BP. The assets covered by the contract include all of BP's upstream oil and gas facilities, both onshore and offshore, in the U.K. and Norway. At the end of the initial term, BP has three consecutive options to extend the contract for a period of two years each.
Under terms of the contract Oceaneering will provide risk-based inspection plans derived from detailed corrosion assessments. These assessments will be based on conventional non-destructive testing (NDT) and specialized inspection services.
Conventional NDT includes magnetic particle, dye penetrant, and visual inspections. Specialized inspections utilize more advanced technologies, such as computerized radiography and guided wave ultrasonics. Furthermore, Oceaneering will provide trend and defect analyses to support facility maintenance and repair plans and to meet statutory compliance requirements.
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