Expro Wins More Contracts
Expro International has been awarded additional contracts with a combined value estimated at $100 million, with contract terms varying from 3 to 5 years. This brings recent contract awards to a total estimated to be in excess of $200 million. The awards underpin Expro's confidence in its projections.
Expro is structured to deliver its range of technology driven products and services to the global upstream hydrocarbons industry through a combination of its functional business units and its geographic regions. This ensures that Expro closely mirrors the buying characteristics of the industry and remains at the forefront of these dynamic markets.
In the rapidly growing area of deepwater subsea field development, Expro's Subsurface Systems business unit provides proprietary, niche technologies for the installation of new subsea wells, and products and services to support the well during its commercial life. Expro's market leading subsea safety tools have recently been selected by ChevronTexaco for their Tahiti and Blind Faith projects in the deepwater Gulf of Mexico. This $35 million contract is for the provision of Expro's new electro-hydraulic deepwater safety systems in what is believed to be the first high pressure subsea field to be developed in a deepwater environment. The contract has an initial 3 year term with revenues starting in late 2005. This material award reinforces the progress made by the Subsurface Systems business.
Expro's geographic infrastructure supports both call-out and project work and acts as the main conduit for marketing most of our Cased Hole Services and Surface and Environmental product lines, both of which have secured enhanced levels of business.
In the Europe/FSU region, in addition to the aforementioned Shell Europe contract, other awards from bp and Talisman in the UK North Sea, and Total in the Netherlands for Cased Hole Services, have totalled $25 million. Whilst the majority of these awards are for the continuation of existing contracts, they underpin Expro's market position for the next 3 to 5 years and offer the potential for increased activity and opportunities to sell new products and services. The region has also added several Surface and Environmental contracts totalling $15 million in the period, including Marathon in Norway, KPO in Kazakhstan, and Venture in the UK North Sea.
The Africa/Asia business, now managed out of Dubai, has also been successful in securing business for both Cased Hole and Surface and Environmental Services. In total, the region has secured $25 million of new contract wins, with the most notable being with Woodside for their field development offshore Mauritania and with CNR for their Espoir project, offshore Cote D'Ivoire.
Graeme Coutts, Expro's Chief Executive Officer commented: "Expro has placed increasing emphasis on client engagement over the past year. The result of this focus has been a significant improvement in converting enquiries into firm contracts. Despite the difficulties created by the weakness of the U.S. dollar, I am delighted with the overall progress that we continue to make."
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