Nexans secures major frame agreement with BP Exploration and Production Inc. for deep water umbilical projects in the Gulf of Mexico
Frame agreement to cover multiple umbilical projects could be worth as much as $300 million
Paris, August 25, 2009 – Nexans, the worldwide leader in the cable industry, has secured a frame agreement with BP Exploration & Production Inc. for deep water umbilical projects in the Gulf of Mexico that could be worth as much as $300 million in total. The frame agreement is initially for one year; however, BP has the right to extend the agreement for an additional four year period.
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 follows the success of the previous umbilical frame agreement between BP Exploration & Production Inc. and Nexans for the Gulf of Mexico, which ran from 2002 to 2008. During this time, Nexans delivered several umbilical projects for BP worth a total of $130 million. A number of these projects presented significant technical challenges, such as implementation of a record breaking deep water dynamic umbilical incorporating high power cable.
“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”, said Yvon Raak, Senior Corporate Executive Vice President. “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.”
The umbilicals for the Gulf of Mexico will be designed and manufactured at Nexans’ specialized facility in Halden, Norway.
With energy as the basis of its development, Nexans, the worldwide leader in the cable industry, offers an extensive range of cables and cabling systems. The Group is a global player in the infrastructure, industry, building and Local Area Network markets. Nexans addresses a series of market segments from energy, transport and telecom networks to shipbuilding, oil and gas, nuclear power, automotive, electronics, aeronautics, handling and automation. With an industrial presence in 39 countries and commercial activities worldwide, Nexans employs 22,400 people and had sales in 2008 of 6.8 billion euros. Nexans is listed on NYSE Euronext Paris, compartment A. More information on www.nexans.com