Nexans agrees offshore deal with BP worth $300m
Cable company to provide deep water umbilicals in Gulf of Mexico
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Cable industry giants Nexans has announced that it has secured a $300 million framework agreement with BP Exploration and Production for deep water umbilical projects in the Gulf of Mexico.
The agreement covers the design, manufacture and supply of bespoke umbilicals that will carry fluid, power, control and telecommunications services for new subsea oil and gas projects or replacements in water depths up to 1,980 metres. During the term of the agreement, Nexans could deliver more than 200 kilometres of umbilical products to BP.
“This new frame agreement with BP Exploration and Production Inc. secures our position as a key strategic supplier of umbilicals for the Gulf of Mexico,” Yvon Raak, vice president at Nexans.
“Nexans has demonstrated its outstanding project execution capability, not only in solving technical challenges but also in ensuring on-time delivery. With this new agreement, we have also demonstrated that we can provide a cost effective solution to the Gulf of Mexico,” he added.
The agreement follows the success of the previous umbilical frame agreement between BP and Nexans for the Gulf of Mexico, which ran from 2002 to 2008. The new agreement is initially for one year; however, BP has the right to extend the agreement for an additional four year period.