Expro Wins Contract to Support Plug and Abandonment Campaign

Rhea-AI Summary

Expro (NYSE: XPRO) has secured a contract worth over $10 million for well decommissioning services, focusing on a 52-well plug and abandonment (P&A) campaign. The project combines subsea safety systems and surface processing design for safe well entry and fluid management.

Operating from its Aberdeen hub, Expro will provide surface fluid management equipment and its 7-3/8" large-bore subsea test tree assembly (SSTTA) with surface tree and controls. The company has maintained a 15-year relationship with this client, having been involved in the original construction of many of these wells. The contract highlights Expro's capability to deliver solutions across the entire well lifecycle, offering subsea well access systems compatible with any Christmas tree type.

Positive

• Secured new contract worth over $10 million
• Demonstrates long-term client relationship spanning 15 years
• Expands presence in well decommissioning market with 52-well project

Negative

• None.

Insights

Financial Analyst

The $10 million contract win for decommissioning services represents a strategic victory for Expro, reinforcing their market position in the well P&A sector. The 52-well project scope demonstrates significant revenue visibility and leverages their 15-year relationship with the client. While the contract value appears modest relative to Expro's market cap, the project's technical complexity and long-term client relationship suggest potential for follow-on work and reference value for similar campaigns. The company's ability to service wells throughout their lifecycle, from construction to abandonment, showcases their comprehensive service offering and positions them well in the growing decommissioning market. This contract win indicates healthy demand for Expro's specialized services and equipment in mature markets.

Energy Industry Expert

The contract highlights Expro's strategic positioning in the growing decommissioning market, particularly significant as the industry faces increasing pressure to properly abandon aging infrastructure. The combination of subsea safety systems and surface processing capabilities demonstrates Expro's technical advantage in complex P&A operations. Their dual barrier and disconnect capability is important for safe well re-entry, while their experience with these specific wells from construction through abandonment provides a competitive edge. The project's scope of 52 wells indicates a substantial long-term commitment and validates Expro's expertise in the P&A sector, which is becoming increasingly important as mature fields reach end-of-life status.

52-well project reinforces Expro’s reputation in subsea and surface well test P&A services

HOUSTON--(BUSINESS WIRE)-- Energy services provider Expro (NYSE: XPRO) has been awarded a contract valued at over $10 million for the provision of a well decommissioning solution. The solution combines subsea safety systems and surface processing design to enable both safe entry to the well and effective management of well fluids.

SSTTA String (Photo: Business Wire)

From its global support hub in Aberdeen, Expro will provide a surface fluid management package and its market-leading 7-3/8” large-bore subsea test tree assembly (SSTTA) with surface tree and controls, providing dual barrier and disconnect capability to facilitate re-entry into the subsea wells.

Expro has supplied subsea safety systems and well test equipment to this client for almost 15 years and was involved in the construction of many of the 52 wells now being plugged and abandoned (P&A’d). This demonstrates Expro’s ability to provide technical solutions across the entire well lifecycle.

With an unrivalled portfolio of standard and bespoke subsea solutions, Expro offers subsea well access systems that interface with any Christmas tree type and can operate in open water or within a drilling riser with blow-out preventer. Expro’s surface well test systems equally provide industry-leading solutions that can be configured to specific well conditions and customer requirements.

Iain Farley, Expro’s Regional Vice President for Europe and Sub-Saharan Africa said: “Having been involved in the development phase for many of these fields, we have gained a life of well experience that will be invaluable for this P&A campaign. Our expertise and know how will help deliver key technical and commercial benefits for the client across the project.

“The contract reinforces our reputation as the leading provider of subsea safety systems and surface well test equipment, including within the P&A sector. It demonstrates our commitment to delivering best-in-class equipment, allied with the highest standards of safety and service quality that Expro is renowned for.”

Notes to Editors:

Expro

Working for clients across the well life cycle, Expro is a leading provider of energy services, offering cost-effective, innovative solutions and what the Company considers to be best-in-class safety and service quality. The Company’s extensive portfolio of capabilities spans well construction, well flow management, subsea well access, and well intervention and integrity solutions.

With roots dating to 1938, Expro has approximately 8,500 employees and provides services and solutions to leading exploration and production companies in both onshore and offshore environments in approximately 60 countries.

For more information, please visit and connect with Expro on Twitter @ExproGroup and LinkedIn @Expro.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release, and oral statements made from time to time by representatives of the Company, may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding, among other things, the Company’s delivery of safe, reliable and environmentally secure subsea well access, the Company’s environmental, social and governance goals, targets and initiatives, and future growth, and are indicated by words or phrases such as "anticipate," "outlook," "estimate," "expect," "project," "believe," "envision," "goal," "target," "can," "will," and similar words or phrases. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from the future results, performance or achievements expressed in or implied by such forward-looking statements. Forward-looking statements are based largely on the Company's expectations and judgments and are subject to certain risks and uncertainties, many of which are unforeseeable and beyond our control. The factors that could cause actual results, performance or achievements to materially differ include, among others the risk factors identified in the Company’s Annual Report on Form 10-K, Form 10-Q and Form 8-K reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, historical practice, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241216642229/en/

MediaRelations@expro.com

Source: Expro

FAQ

What is the value of Expro's (XPRO) new decommissioning contract in 2024?

Expro (XPRO) has secured a contract valued at over $10 million for well decommissioning solutions.

How many wells are included in Expro's (XPRO) new P&A campaign?

The plug and abandonment (P&A) campaign includes 52 wells.

What equipment will Expro (XPRO) provide for the P&A project?

Expro will provide a surface fluid management package and a 7-3/8" large-bore subsea test tree assembly (SSTTA) with surface tree and controls.

Where will Expro (XPRO) manage the decommissioning project from?

Expro will manage the project from its global support hub in Aberdeen.

How long has Expro (XPRO) been working with this decommissioning client?

Expro has been supplying subsea safety systems and well test equipment to this client for almost 15 years.