OYO Geospace announced that it has accepted a non-binding letter of intent with the international energy company Statoil to provide 600 kilometers of seabed seismic reservoir monitoring system for the Snorre and Grane fields on the Norwegian continental shelf.
Under the letter of intent, Statoil is contractually obligated to pay OYO Geospace $2.5 million for certain pre-award work related to a potential final contract. The final contract, if it is awarded in October 2012 contingent on partner approval, as the letter of intent anticipates, would result in total revenue of approximately $160 million over a three-year period.
The letter of intent is cancellable by Statoil at any time prior to the execution of definitive contract documentation. At this time, there can be no assurance that definitive contract documentation will be agreed and entered into, or that OYO Geospace will receive the benefits of the proposed contract.
OYO Geospace designs and manufactures instruments and equipment used by the oil and gas industry in the acquisition and processing of seismic data as well as in reservoir characterization and monitoring activities. The company also designs and manufactures equipment and film for the thermal printing industry worldwide.
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Press Release, September 11, 2012