GE Oil & Gas is pleased to announce it has been issued orders to supply seven subsea tree and wellhead systems, utilizing the VetcoGray MHXT tree and VetcoGray SG-5 wellhead system, by Maersk Oil North Sea UK Limited (Maersk Oil) for deployment in the U.K. North Sea. The total value of the awards is expected to be approximately $20 million.
The orders are made under a frame agreement signed with Maersk Oil which runs for a five-year period. Under the agreement, GE Oil & Gas continues to supply subsea wellheads, trees and tubular products to Maersk Oil for exploration and development projects.
The subsea trees will be manufactured at the GE Oil & Gas plant in Aberdeen, Scotland, and the SG-5 wellhead systems will be manufactured at the Montrose service facility, Scotland. These systems are set for a phased delivery commencing September 2011.
Frame agreements provide a standardized scope of supply designed to enhance manufacture and minimize manufacturing time and cost for the duration of the agreement.
GE Oil & Gas is a major supplier of subsea hardware to the oil and gas Industry and looks forward to supporting Maersk Oil in its ongoing development requirements over the next five years.