Oceaneering Bags Contract From Petrobras Worth $75M In Revenues

Oceaneering International Inc OII disclosed winning a five-year contract from Petróleo Brasileiro S.A. (Petrobras) in Brazil for the operation of three existing drill pipe riser (DPR) systems to support intervention and completion operations in Brazil.

Petrobras also has the option to add a fourth DPR system by notifying Oceaneering before mid-December 2023. 

The field operations are expected to start when the current contract expires or 18 months afterwards. 

The five-year contract value could be worth up to $75 million in revenue.

"We are very pleased to continue providing Petrobras with DPR services over the next five years. Since winning the initial contract in 2018, we have greatly expanded our presence in Brazil and have leveraged our portfolio of services and products into other areas of the growing Brazilian market. We believe our strong performance under the original DPR contract and our expertise in control systems and umbilicals for the subsea industry were key elements to winning this contract," commented Roderick A. Larson, President and CEO of Oceaneering.

OII is expected to release its Q3 financial results on October 25, 2023.

Price Action: OII shares closed higher by 4.57% at $24.48 on Monday.