Diamond Offshore Drilling Inc. and GE Oil & Gas have entered what is being called the offshore drilling industry’s first-of-its-kind contractual service agreement that transfers full accountability for BOP performance to GE Oil & Gas, a news release said.
In this Pressure Control by the Hour model, Diamond Offshore will compensate GE Oil & Gas only when the BOP is available. The 10-year collaborative arrangement, which is for GE’s engageDrilling Services, will include GE purchasing the BOP systems aboard Diamond Offshore’s four drillships in the U.S. Gulf of Mexico for a total of $210 million, according to the release.
“Subsea equipment repair and maintenance is the single largest cause of nonproductive time across our industry, resulting in great expense to both drillers and operators,” said Marc Edwards, president and CEO of Diamond Offshore. “In today's market, we have to make the economics of offshore drilling more competitive for our clients. The purpose of our new Pressure Control by the Hour service model is to incentivize all parties to prioritize equipment reliability and availability for the ultimate benefit of our customers.”
Lorenzo Simonelli, president and CEO of GE Oil & Gas, added, “To deliver a solution that improves drilling efficiency now and in the future, collaboration is essential. We are changing the game by building the new blowout preventer service model for the industry. With improved control, maintenance and servicing of our equipment, we are putting skin in the game and guaranteeing performance.”
The GE Oil & Gas engageDrilling Services offering enhances BOP system availability by transferring the maintenance and service of pressure control equipment to GE Oil & Gas. This includes on-rig GE Oil & Gas personnel, management of parts, overhaul and repair, continuous certification, data monitoring, and management of change, according to the release. This new arrangement is a performance-based alliance that leverages the scale of GE data, predictive analytics, insights and continuous certification, positioning GE as a long-term commercial, operational and technical partner.
Under the new service model, Diamond Offshore will begin capturing data through GE's monitoring and analytics solutions. Over time, this will enable condition-based monitoring and maintenance, which will drive proactive decision-making and planning to address the requirements of industry standards for drilling systems, the release said. By transferring the maintenance and service of well control equipment to GE Oil & Gas, Diamond Offshore is simplifying operations and optimizing between well maintenance to reduce the frequency and duration of downtime.
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