Deep Down Inc., a specialist in complex deepwater oil and gas distribution equipment and services, said Aug. 20 that it has received an order from Shell for work related to its Kaikias development in the U.S. Gulf of Mexico.
The order is for the design, engineering, manufacturing and installation of a riser isolation valve control system on the Ursa tension-leg platform (TLP). The Ursa TLP is located in the Mississippi Canyon Block 810, approximately 130 miles from the coast of Louisiana, in a water depth of 4,500 ft (1,371 m).
The riser isolation valve control system will be installed on the TLP to provide shutdown of production fluids.
“We continue to be humbled by the trust Shell places in Deep Down, as we work together to continuously improve safety in the oil and gas industry,” Charles Njuguna, Deep Down’s CFO, said.
Oilfield services firm Halliburton on April 6 was cutting about 350 employees in Oklahoma, according to a filing with the state, amid a deepening oil bust.
Although the industry learned a lot during the last downcycle, oil and gas companies won’t have the same access to capital in the latest slump and will likely only be able to invest the cash they generate.
The prospect of lower production from the U.S. shale patch has pushed gas prices higher.