Offshore staff

(UK)- Oceaneering International, Inc. has won the largest inspection and corrosion management services contract in its history. The contract with BP is expected to generate approximately $90 million of revenue for Oceaneering during the initial three-year term.

Under the contract, Oceaneering will provide corrosion inspection services for BP on an increased number of the operator's facilities in the U.K. and Norway. The assets covered by the contract include all of BP's upstream oil and gas facilities, both onshore and offshore.

The average annual revenue of $30 million Oceaneering anticipates to earn during the initial term of the new contract is 40% higher than the revenue received in 2005 for providing inspection services to BP. At the end of the initial three-year term, BP has three consecutive options to extend the contract for a period of two years each.

The contract calls for Oceaneering to provide risk-based inspection plans derived from detailed corrosion assessments. These assessments will be based on conventional non-destructive testing (NDT) and specialized inspection services.

Conventional NDT includes magnetic particle, dye penetrant, and visual inspections. Specialized inspections utilize more advanced technologies, such as computerized radiography and guided wave ultrasonics.

Oceaneering will also provide trend and defect analyses to support facility maintenance and repair plans and to meet statutory compliance requirements.

05/19/2006