Dril-Quip Enters Into Letter of Intent for Subsea Production Systems for Sea Lion Project

HOUSTON, July 13, 2018 (GLOBE NEWSWIRE) -- Dril-Quip, Inc. (NYSE:DRQ) today announced that Dril-Quip (Europe) Limited, its wholly-owned subsidiary based in Aberdeen, Scotland, has entered into a letter of intent with Premier Oil Exploration and Production Limited to provide subsea production systems for the Sea Lion Phase 1 Development located offshore the Falkland Islands. 

The scope of work includes plans for 23 subsea production systems, including wellheads, trees, control systems, associated production and injection manifolds, subsea umbilicals and related services.  It is intended that Dril-Quip will commence pre-sanction engineering work in August 2018.  Formal contract award will be subject to agreement of a definitive contract and Premier taking a final investment decision.  Dril-Quip would also provide vendor financing for a portion of the contract.

Blake DeBerry, President and Chief Executive Officer of Dril-Quip, stated, “Premier’s approach was to select a world-class team of contractors, and we are pleased to play an important role in this project.  We believe that our new product development efforts with respect to our subsea tree products were instrumental in our ability to satisfy Premier’s requirements.  Also, our strong balance sheet allows us to provide Premier with vendor financing for a portion of the contract which is consistent with our overall strategy.  Dril-Quip (Europe) Limited has enjoyed a successful relationship with Premier that includes providing multiple subsea completion systems for Premier’s Catcher Area Development project in the North Sea.  We look forward to continuing that relationship with Premier as this significant project moves forward.”

About Dril-Quip

Dril-Quip is a leading manufacturer of highly engineered drilling and production equipment for use onshore and offshore, but which is particularly well suited for use in deepwater, harsh environment and severe service applications.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the execution of a definitive contract, final investment decision approval, vendor financing, provision of equipment and services, the expected scope of the contract and the expected timing of work.  Forward-looking statements are based upon certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments and other factors. These statements are subject to risks beyond the Company’s control, including, but not limited to, the volatility of oil and natural gas prices and cyclicality of the oil and gas industry, the Company’s international operations, decisions made by the Company’s customers and suppliers, operating risks, and other factors detailed in the Company’s public filings with the Securities and Exchange Commission.  Certain material factors that could cause the Company’s actual results to differ from those contemplated in this press release include, but are not limited to, the amount of products actually ordered pursuant to the contract, the Company’s ability to successfully manufacture and deliver, and the customer’s acceptance of, the products ordered.  Investors are cautioned that any such forward-looking statements are not guarantees of future performance and actual outcomes may vary materially from those indicated.

Contact: Trever Ashurst, Manager – Investor Relations (713) 939-7711