GE Oil & Gas announced a new contractual service agreement (CSA), valued at approximately $180 million, with Transocean. The agreement, signed at the end of 2016, aims to further maximize productivity and lower operating costs for Transocean.

As a pioneer of new business models and performance-based service agreements, GE will provide condition-based monitoring and maintenance services for pressure control equipment on seven of Transocean’s rigs over the next 10 to 12 years.

“This agreement builds on the new service model we introduced last year to address today’s industry shift toward maximizing productivity and lowering operating costs while also maintaining operating flexibility,” said Lorenzo Simonelli, president and CEO, GE Oil & Gas. “When cost and risk are at the top of operators’ minds, we share the responsibility by investing in equipment uptime and performance.”

The agreement leverages GE’s digital capabilities to shift from event and calendar-based maintenance to condition-based monitoring and maintenance. Working with GE on parts forecasting and service scheduling will allow Transocean to optimize operations by proactively planning and minimizing between-well maintenance.

“We are evolving our business and enhancing our digital offerings to match the needs of our customers,” Simonelli said. “Digitization truly is the single largest step change for the industry and the foundation for its future.”

About GE Oil & Gas

GE Oil & Gas (NYSE: GE) works on the things that matter in the oil and gas industry. In collaboration with our customers, we push the boundaries of technology to bring energy to the world. From extraction to transportation to end use, we address today's toughest challenges in order to fuel the future.

About Transocean

Transocean (NYSE: RIG) is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on deepwater and harsh environment drilling services, and believes that it operates one of the most versatile offshore drilling fleets in the world.

Transocean owns or has partial ownership interests in, and operates a fleet of 58 mobile offshore drilling units consisting of 29 ultra-deepwater floaters, seven harsh-environment floaters, four deepwater floaters, eight midwater floaters and 10 high-specification jackups. In addition, the company has five ultra-deepwater drillships and five high-specification jackups under construction or under contract to be constructed.