Houston, Texas - Deep Down Inc. has announced that its Flotation Technologies Inc. unit has gained a contract for a unique, custom-designed riser buoyancy solution from an international energy company. The $5.5-million contract is expected to be delivered in second half of 2008. The client and product are confidential due to the nature of the project, said Houston-based Deep Down, in a 9 May statement.
Deep Down signed a deal to buy Flotation Technologies Inc., which makes deepwater buoyancy and polyurethane elastomer systems, on 17 April 2008. Deep Down itself provides a range of services for the offshore subsea energy sector, including installation management and engineering and support services, as well as custom fabrication.
"We are very excited about the future of Flotation Technologies," commented Ronald Smith, Deep Down's president and ceo, in the company statement. Commenting on the purchase of the company, Smith added, "We believe the 'cost of ownership' of many of its products is attractive due to lower maintenance, repair, and replacement requirements after installation."
His view is that buoyancy will be increasingly important as the offshore energy industry continues to explore in ever deeper waters.
"This product is a solid example of the application of our engineering capabilities to create solutions for our customers' needs," said David Capotosto, Flotation Technologies' executive vice-president, in Deep Down's statement. Capostano said this deal utilises the ability of the group to offer engineering solutions "in volume, with aggressive timelines."
Flotation Technologies of Biddeford, Maine, makes deepwater buoyancy systems using its high-strength Flotec syntactic foams and polyurethane elastomers. Its buoyancy products are used in marine applications including distributed buoyancy for flexible pipes and umbilicals, drilling riser buoyancy modules, and many more offshore uses.
Houston-based Deep Down makes component parts of subsea distribution systems and assemblies for subsea fields. These items include umbilicals, flow lines, distribution systems, pipeline terminations, controls, winches, and launch and retrieval systems. The Company said its strategy is to consolidate service providers to the offshore oil and gas industry, throughout the world.