Spanish oil company Repsol has terminated a contract with U.S. firm Dril-Quip for the delivery of offshore equipment for a project in Vietnam.
Houston-based Dril-Quip has announced that the contract award between its subsidiary Dril-Quip Asia Pacific Pte Ltd. and Repsol for the supply of drilling Top Tensioned Riser (TTR) systems for the Ca Rong Do (CRD) project located offshore Vietnam has been terminated.
The contract was awarded in February 2018 and was last extended until December 31, 2019 but had been subject to continued delays of the CRD project. With this termination, the CRD contract value of approximately $82 million will be removed from the Company’s backlog.
Blake DeBerry, Dril-Quip's President and Chief Executive Officer, commented, "While we are disappointed with this outcome, CRD was not included in our prior 2019 revenue guidance due to the overall uncertainty surrounding the project. "
DeBerry added: "We remain confident in our ability to achieve our previously announced guidance of $75 to $95 million of product bookings and $100 to $110 million of revenue per quarter for the remainder of 2019, and we continue to focus our efforts on growing our bookings and backlog while effectively executing to best serve our customers.”