Deep Down, Inc. today announced expansion plans of its buoyancy manufacturing facility and flotation testing services in response to recent orders and anticipated demand for its drilling riser buoyancy system used in ultra-deepwater production. The facility's expansion effectively doubles its buoyancy manufacturing capacity.
Deep Down acquired the Biddeford, Maine based facility, Flotation Technologies, Inc., in June of 2008 in conjunction with its continuing strategy to expand services in the deepwater and ultra-deepwater drilling and production markets. Subsequently, the Company announced an $11 million order for its deepwater drilling riser buoyancy modules to be installed on the Delba III semisubmersible drilling rig, which has a long-term contract to drill in Brazilian waters.
"Deep Down's primary opportunities are in the growing deepwater drilling and production services sector," commented Ronald E. Smith, Deep Down's president and chief executive officer. "To ensure our Company is prepared to meet demand, we have committed over $2 million to expand production and testing service capabilities. We have undertaken this expansion to advance Deep Down's strategy to become a leader within the deepwater buoyancy marketplace."
Deep Down's newly engineered drilling riser buoyancy solution, with its patent-pending CoreTec(TM) syntactic foam buoyancy technology, has solved many difficulties over current buoyancy products because it is inherently stronger at depth and provides a longer service life, which ultimately translates into a much more cost-effective drill riser buoyancy solution.
Ground has already been broken on the first phase of the expansion project, with construction to improve the Maine facility's shipping access and operational functionality. The second phase of the project, which includes the Maine facility's expansion and a Texas-based testing service capability, is slated to begin later this quarter.