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Petroleum

Oceaneering International Awarded Contract for FPSO System by Mobil Equatorial Guinea Inc.

Strategic Insights

— 1 min read

Oceaneering International, Inc., a leading provider of engineered services and hardware to customers operating in marine, space, and other harsh environments, has been awarded a contract by Mobil Equatorial Guinea Inc. to provide a floating production, storage, and offloading (FPSO) system. The contract, with an initial term of three years, marks the largest capital expenditure commitment in Oceaneering's history, with an estimated capital cost of $70 million. The FPSO system will be purchased and converted from an existing 268,000 deadweight ton crude oil tanker, providing Mobil with the option to purchase the vessel at any time during the contract term. The project is expected to contribute incremental annual earnings of approximately $0.30 per share during the contract term.

Key Takeaways:

  • Oceaneering International has been awarded a contract by Mobil Equatorial Guinea Inc. to provide a floating production, storage, and offloading (FPSO) system.
  • The contract has an initial term of three years, with an estimated capital cost of $70 million.
  • The FPSO system will be purchased and converted from an existing 268,000 deadweight ton crude oil tanker, which will have oil storage capacity of about 1.2 million barrels.
  • The project is expected to contribute incremental annual earnings of approximately $0.30 per share during the contract term.
  • Oceaneering will arrange debt financing to fund the required capital expenditures.
  • The contract provides Mobil with the option to purchase the vessel at any time during the three-year period.
  • John Huff, Chairman, President, and CEO of Oceaneering International, Inc., stated that the contract represents the culmination of a mutually beneficial relationship between Oceaneering and Mobil.

Statistics:

  • Estimated capital cost of $70 million.
  • Expected new earnings per share: $0.30.
  • Oil storage capacity: approximately 1.2 million barrels.
  • FPSO system to be purchased and converted from a 268,000 deadweight ton crude oil tanker.
  • Initial term of contract: three years.

Sources:

  • Oceaneering International Press Release, November 30, 1995.
  • NYSE: OII.
  • /CONTACT: Jack Jurkoshek, Investor Relations Manager of Oceaneering International, 713-578-8868, or Telefax, 713-578-5243/

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