Oceaneering Wins BP Offshore Contract In Angola

By Houston Business Journal

Oceaneering International Inc. (NYSE: OII) has been awarded a three-year contract from BP Plc (NYSE: BP) for services offshore of Angola.

The Houston-based oil and gas services company agreed to provide project management, engineering and two vessel services to two BP blocks beginning on Feb. 1. Oceaneering’s work on the blocks will consist of some subsea construction, inspection, maintenance and repair of subsea infrastructure.

London-based BP has the option to add a third vessel service from Oceaneering to its blocks after the contract start date.

Terms of the contract were not disclosed.

Angola is one of Oceaneering’s growing markets, said M. Kevin McEvoy, the company’s president and CEO, in a statement.

The contract win could bump up the lower end of Oceaneering’s 2012 earnings per share guidance range by as much as 10 cents, according to a note to investors Thursday from Pritchard Capital Partners LLC analysts. Although Oceaneering said it accounted for the contract in its eps guidance range of $2.45–$2.65, the analysts estimate that the lower end of the range is at $2.54. The analysts also said the contract signifies the upturn of Oceaneering’s subsea project business.

Copyright 2011 American City Business Journals

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