Petrofac and Danos, a US-based oilfield services provider, have signed a memorandum of understanding (MoU).

The MoU is structured to progress discussions towards the formation a joint venture (JV) Agreement for the pursuit of opportunities to deliver services across the oil and gas asset life cycle, with a focus on supporting operations and asset management solutions.

The two organisations are seeking to combine their collective strengths in a JV to provide a differentiated service offering to hydrocarbon resource holders. These service capabilities would be deployed to support operations across all phases of the asset life cycle including late life and decommissioning.

To remind, Danos has recently been awarded a contract by Shell Exploration and Production Company, a subsidiary of Royal Dutch Shell, to provide mechanical and automation maintenance services for three of its production hubs and associated subsea infrastructure located in the Gulf of Mexico.

Dave Blackburn, senior vice president, Petrofac Engineering and Production Services, said: “The ‘lower for longer’ operating environment requires a different approach to be taken and we see this as an ideal time for our two companies to come together in this alliance. As many companies are forced to consider how to reduce operating and lifting costs, or improve efficiencies, the blend of our capabilities, from skilled, competent local people through to fully holistic asset-led solutions provides us with a clear platform from which we can respond.”

Paul Danos, executive vice president, Danos said: “At Danos, part of our purpose is to ‘solve big challenges for our customers’. We see a clear need for new and creative solutions to address the developing challenges brought on by the current market realities. I am excited about the strong capabilities that this alliance creates to offer relevant solutions to our customers.”