HOUSTON – Diamond Offshore Drilling Inc. and GE Oil & Gas have entered into a contractual service agreement (CSA) that transfers full accountability for BOP performance to GE Oil & Gas. In this Pressure Control by the Hour model, Diamond Offshore will compensate GE Oil & Gas only when the BOP is available.
Under the arrangement, GE Oil & Gas will provide engageDrilling Services for BOP systems on Diamond Offshore’s four sixth-generation drillships, including management of maintenance, certification, and reliability. This 10-year collaborative arrangement will include GE purchasing the BOP systems aboard the four drillships, currently located in the US Gulf of Mexico, for a total of $210 million.
Marc Edwards, president and CEO of Diamond Offshore, said: “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.
“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.”
GE Oil & Gas says the 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 personnel, management of parts, overhaul and repair, continuous certification, data monitoring, and management of change.
This new arrangement is a performance-based alliance that leverages the scale of GE data, predictive analytics, insights and continuous certification, positioning the company 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.