GE Oil & Gas (NYSE: GE) and Transocean have signed a new contractual service agreement (CSA), valued at about $180 million, that aims to further maximize productivity and lower operating costs for the offshore drilling company, GE said in a news release Jan. 11.

As part of the agreement, in line with a new business model based on service, GE will provide condition-based monitoring and maintenance services for pressure control equipment on seven of Transocean’s rigs over the next 10 to 12 years, according to the release. The agreement is a change from event and calendar-based maintenance to condition-based monitoring and maintenance.

“This agreement builds on the new service model we introduced last year to address today’s industry shift toward maximizing productivity and lowering operating costs while also maintaining operating flexibility,” GE Oil & Gas CEO Lorenzo Simonelli said in the release. “When cost and risk are at the top of operators’ minds, we share the responsibility by investing in equipment uptime and performance.”

The agreement was signed at the end of 2016.

Offshore