WA-based company Matrix Composites and Engineering has won an agreement with a European oil services company to supply riser buoyancy models for three years, with two one year options following.
Matrix said in a statement the agreement was potentially worth $35 - $50 million per year in revenue, based on historical performance.
Riser buoyancy modules act to compensate for the weight of drills in deep water.
Under the agreement, Matrix will work on the development of new modules to be used to a depth of 15,000 feet, which is the greatest depth riser buoyancy modules have been used.
The company said it was chosen as the primary supplier due to the superior quality of its product, its effective quality programs and the efficiency of its new manufacturing plant in Henderson, WA.
The plant is home to a hydrostatic pressure testing facility with a 7,500PSI deep water simulation chamber, the largest of its type in the world.
The facility can test buoyancy systems to a depth of 17,500 feet.
Matrix CEO Aaron Begley said the award of the agreement showcased the company’s success in delivering on one of its key strategies of strengthening its position as the global leader in the manufacture, supply and service of subsea buoyancy systems.
Matrix shares were down 1 cent to $2.99 at close today.
