Dril-Quip Inc. will remove $82 million from its contract backlog after confirming that a supply contract for the offshore Ca Rong Do project in Vietnam between subsidiary Dril-Quip Asia Pacific PTE Ltd. and Spanish energy company Repsol SA was terminated, according to a Sept. 16 release.
The contract was awarded in February 2018 and covered the supply of top tensioned riser systems and related services. It was extended to Dec. 31, 2019, but was subject to continued delays of the Ca Rong Do project.
Dril-Quip President and CEO Blake DeBerry said that while the company was disappointed with the outcome, the contract was not included in its prior 2019 guidance due to uncertainty around the project. DeBerry said the company remains confident in achieving its production booking guidance of $75 million to $95 million as well as revenue of $100 million to $110 million per quarter for the rest of 2019.
The project concerns the development of the Ca Rong Do field in Block 07/03 offshore Vietnam. Repsol operates the project with the participation of Mubadala Petroleum LLC, PetroVietnam Exploration Production Corp. and PetroVietnam.
