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GE in $180m Transocean deal

GE takes on latest monitoring, maintenance project in oilfield technology

Equipment maker GE has forged a long-term $180 million monitoring and maintenance contract with Transocean, a 10-to-12-year deal covering pressure-control equipment on seven rigs.

The agreement aims to optimise productivity and lower operating costs for the drilling giant, highlighting a switch to "condition-based" monitoring from "event and calendar-based maintenance," GE said in a statement.

“This agreement builds on the new service model we introduced last year to address today’s industry shift toward maximizing productivity and lowering operating costs while also maintaining operating flexibility,” said Lorenzo Simonelli, chief executive of GE Oil & Gas.

GE made headlines last year with a $210 million deal with Diamond Offshore to buy blowout preventers on four rigs in the US Gulf to be leased back at a dayrate, a fee-for-service model aimed at improving efficiency and uptime.

GE has been diving ever deeper into oil and gas in recent months. It has agreed to merge its oil and gas unit with services giant Baker Hughes in a deal that is supposed to close next year.

It also recently struck a deal with supermajor BP to team up on real-time monitoring and data analysis in a bid to improve operational reliability and reduce unplanned downtime.