This new contract award followed a competitive bid process involving other North Sea metering service companies and has an estimated total value in excess of US $12 million. The contract covers five years, with an option for a five-year extension, and will be managed from Conoco's Aberdeen headquarters.
Accurate, reliable measurement of oil and gas production, known as metering, is of critical importance as these measurements are used for fiscal accounting, custody transfer, and taxation purposes. Even small errors in daily metering have a significant financial impact. With metering management, an oil company can have higher confidence in the accuracy of the measurement equipment being used and ensure it is maximizing revenues from production.
Emerson will supply its metering engineers and trained technician personnel at Conoco's onshore offices, onshore gas terminal and offshore installations. The Emerson team will be responsible for validation and reporting of measurement data, and for all metering, sampling and test equipment. Emerson personnel will also support installation of all custody transfer terminals, as well as ongoing terminal maintenance and verification activities.
Anne Burton, Southern North Sea Commercial Manager for Conoco, commented on the value of the relationship, "Partnering with Emerson gives Conoco access to considerable metering expertise and the advances in technology in the area of measurement which is key to our continuing business."
"In today's business environment, oil & gas companies continue a high emphasis on performance of their custody transfer metering systems because accuracy and integrity are important for profit margins and customer confidence," said John Berra, executive vice president of Emerson with responsibility for the process management business. "Emerson Process Management has built extensive engineering services capabilities that match up with our technology leadership to enable our customers, like Conoco's North Sea operations, to cost-effectively improve and maintain their metering systems."
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