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Image courtesy of GE Oil and Gas.

GE Oil & Gas has signed a new contractual service agreement with Transocean worth about $180 million.

GE said on Thursday that the agreement was signed at the end of 2016 and “aims to further maximize productivity and lower operating costs for Transocean.”

As part of the agreement, GE will provide condition-based monitoring and maintenance services for pressure control equipment on seven of Transocean’s rigs over the next 10 to 12 years.

“This agreement builds on the new service model we introduced last year to address today’s industry shift toward maximizing productivity and lowering operating costs while also maintaining operating flexibility,” GE Oil & Gas CEO and president Lorenzo Simonelli said.

GE said the agreement will leverage its digital capabilities to shift from event and calendar-based maintenance to condition-based monitoring and maintenance.

The company added that working with GE on parts forecasting and service scheduling will “allow Transocean to optimize operations by proactively planning and minimizing between-well maintenance.”

“Digitization truly is the single largest step change for the industry and the foundation for its future,” Simonelli added.