This strategic, corporate level contract provides for the development and commercialization of this unique technology for subsea operational deployment on a global scale.
Expro will build and deploy a fully engineered AX-S system; BP will provide partial project funding and technical input, including field trials of the AX-S system on subsea wells, subject to the system passing agreed testing milestones. The agreement anticipates that field trials will take place during the first half of 2009. Both parties have also determined the basis of a long-term contractual agreement to further the commercialization of this unique technology. Once proven, the AX-S system will be available to the whole industry.
The parties also anticipate further collaboration covering future technology developments aligned to establishing maximum impact of the AX-S intervention technique. The AX-S system is designed to service the rapidly growing market for lightweight well intervention services that diagnose production problems and improve production and reserves recoveries from subsea wells. The AX-S system has been designed to extend the limits of lightweight intervention to water depths of up to 10,000 feet, which would represent a significant technological breakthrough over what is possible today.
Commenting on behalf of Expro, Graeme Coutts, CEO said, "Introducing breakthrough technologies in the upstream sector is a very difficult task. The road to commercialization can be lengthy and extremely expensive. I am therefore delighted that we have been able to construct a contractual relationship, which reflects full strategic alignment between technology provider and end user. We have chosen to partner with BP in particular because they share our vision and ambition to be at the forefront of deepwater development, creating technical solutions, like AX-S, that will go on to become accepted commercially as industry wide solutions. In the world where oil and gas is becoming increasingly difficult to find, our customers are becoming very focused on maximizing recovery from existing discoveries. In deep water, rig based economics limit the deployment of traditional production enhancement techniques resulting in lower recovery factors than might otherwise be possible. Both BP and Expro recognize the potential of AX-S to exploit this key market opportunity and deliver a meaningful new technique to the upstream sector in the growing market of subsea field development."
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