Dril-Quip Inc. (NYSE: DRQ) said Oct. that Dril-Quip (Europe) Ltd., its wholly-owned subsidiary based in Aberdeen, Scotland, has entered into a FEED contract and frame agreement with Premier Oil Exploration and Production Ltd. to provide the subsea production systems for the Sea Lion Phase 1 Development located offshore the Falkland Islands.

The frame agreement replaces the previously announced letter of intent.

The current estimated value of the equipment portion of the scope of work is $207 million which includes plans for up to 30 subsea production systems, including wellheads, horizontal trees, tubing hangers, control systems, associated production and injection manifolds and subsea umbilicals. Under the frame agreement, it is envisaged that Dril-Quip will provide vendor financing for up to 30% of the equipment portion of the contract. Formal contract award will be subject to agreement of a definitive contract and Premier taking a final investment decision.

“We are excited that Premier has chosen Dril-Quip to be their trusted provider of subsea equipment for Sea Lion and that Dril-Quip’s scope of work for the project is progressing according to plan,” Blake DeBerry, president and CEO of Dril-Quip, stated.

Offshore