Drilling and production equipment provider Dril-Quip and controls technology company Proserv have entered into an agreement under which Dril-Quip will rely upon Proserv for the development and manufacturing of its subsea control systems as a supplier.
"The mutually beneficial arrangement allows Dril-Quip to continue to support its existing subsea controls customers with the support of Proserv. The agreement follows Dril-Quip’s strategic decision to consolidate the supply and development of control systems with a dedicated subsea controls provider," the companies said in a joint statement.
The agreement also establishes a framework where Proserv and Dril-Quip may pursue joint marketing and collaboration efforts, with Dril-Quip providing subsea trees and Proserv providing subsea controls.
"This bundled offering will be a compelling value proposition for customers as it brings cutting edge technology solutions at competitive prices," the companies added.
Blake DeBerry, Dril-Quip's Chief Executive Officer, said the collaboration would significant benefits to the company's customers in the subsea production system market, as it will save them time and money "all while enhancing the execution of their offshore projects."
Davis Larssen, Proserv Controls Chief Executive Officer, said that Proserv would continue to operate independently, but would also now support Dril-Quip with the supply of subsea controls to Dril-Quip’s overall subsea offering, including fully integrated solutions.
David Currie, Proserv Group Chief Executive Officer, said: “Following our restructuring in 2019 and the creation of two focused divisions, this agreement reflects the next logical stage for the Proserv Controls business as it continues to focus on the core strengths of technology and innovative partnering for customer success, as evident here with Dril-Quip, as the only truly independent and focused controls provider in an industry that looks to new solutions going forward.”