OPT pens first ever service contract with U.S. oil and gas operator

Business & Finance

Ocean Power Technologies (OPT), a provider of ocean energy solutions, has signed a master service contract with an unnamed offshore oil and gas operator.

Ocean Power Technologies' PB3 PowerBuoy; Source: OPT

OPT said on Tuesday that the contract would govern all work with the customer within the U.S. and the U.S. outer continental shelf including the provision of goods and services.

George H. Kirby, president and CEO, said: “This contract is the first with a U.S. oil and gas operator, opening the door for OPT to provide solutions into the Gulf of Mexico […]. This contract signifies a major investment of time and resources by our customer and OPT, which further demonstrates the demand for our solutions and our credibility as experts in marine power and communications.”

According to the company, the deal includes the terms and conditions under which all future work with this customer will be conducted, including all product and service warranties.

“The Gulf of Mexico is the largest oil field decommissioning market in the world with more than 9,000 wells that require plugging and abandonment. Many of these wells are in deep water, where high cost and complexity drive the need for new technologies and where every dollar saved goes directly to the bottom line,” Kirby added.

In recent company news, OPT and electric underwater robotic systems manufacturer Saab Seaeye entered into a joint development and marketing agreement in late January.