Feb. 28 (UPI) -- Subsea 7, a company offering service support for oil and gas field development, said it landed a contract of at least $50 million for offshore Australia.
The company, which has its headquarters in the United Kindgom, announced a contract from Cooper Energy Ltd. that was valued at between $50 million and $150 million to help develop the Sole gas field off the coast of Victoria.
Andy Woolgar, a managing director for the region for Subsea 7, said the contract shows his company's competence in pipeline installations and other offshore infrastructure requirements.
"We look forward to leveraging this established and proven record in pipeline fabrication and offshore installation to help Cooper Energy as it develops its offshore gas resources," he said in a statement.
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The contract is indicative of recovery in spending on exploration and production that's followed stabilizing crude oil prices. A decision by members of the Organization of Petroleum Exporting Countries to cap output at 32.5 million barrels of oil per day set a tacit floor under oil prices at $50 per barrel.
Subsea 7 entered June with an announcement that a contract for offshore Brazil was canceled about six months early, leaving it without a day-rate contract in one of the more vibrant offshore sectors.
Last year's downturn forced many in the industry to cut back on spending and lay off staff. Royal Dutch Shell trimmed more than 2,000 jobs from its payrolls last year as the industry struggles to move through the downturn.
Citing "difficult" market conditions in the middle of 2016, Subsea 7 cut its labor force by more than 1,200 in an effort to adjust to the new market era of lower oil prices.
