Subsea buoyancy product manufacturer Matrix Composites and Engineering has received a letter of intent for the purchase of deepwater drilling riser buoyancy systems in Asia.
The deal is with HMH USA and is for a new deepwater drilling rig project, and its size suggests that lean time experienced by the company in its oil and gas markets during the Covid-19 pandemic is over.
The letter of intent includes provisions for a purchase order to be received within 90 days at an agreed price of at least $14 million.
Matrix will now begin early stage activities at its Henderson, Perth composites factory to allow for the production of its syntactic foam drilling riser buoyancy modules (pictured) and riser protection systems.
Matrix is a world leader in subsea buoyancy systems, with its buoyant composite structures supporting drill and production equipment and pipelines suspended as much as 6,100 metres below the surface of the ocean.
Matrix CEO Aaron Begley said the order reflected a revival in the deepwater drilling market, with the company optimally positioned to capitalise on growing demand.
Begley said: “The well supported capital raise we recently announced gives us the balance sheet strength required to successfully deliver this contract upon award and target further opportunities that are emerging in the market.”
HMH is a full-service onshore and offshore drilling equipment supplier.
Picture: Matrix Composites and Engineering
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