Marine engineering company Oceaneering (NYSE:OII) announced in a press release Thursday that it has received an order from BP (NYSE:BP) subsidiary BP Exploration Operating Company Limited that will add $45 million to Oceaneering's backlog.
The deal contracts Oceaneering to supply umbilicals cables for BP's Quad 204 field development. This order will provide umbilicals totaling 19 kilometers (11.8 miles) in length, with the company expecting the final phase of product manufacturing to be complete in 2015. They will be used to supply electrical and hydraulic power and chemical injection to subsea trees and production manifolds located at BP’s Quad 204 field development west of Shetland in the United Kingdom.
According to Oceaneering, this is the first deal between the companies after BP and Oceaneering ironed out a 10-year agreement in the third quarter of 2012 for the latter to supply the former with umbilicals and ancilliary equipment and services.
Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends Oceaneering International. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.