COMMUNICATIONS: Andronics, a Derry-based firm specialising in satellite communications, has won a deal with oil giant BP that should generate multimillion euro revenues.

BP has agreed to install the firm's UtilityEye product, a system for remote monitoring of gas and oil tanks, into 2,000 residential and commercial tanks.

By installing a monitoring unit at each oil or gas tank, BP will be able to ensure its customers do not run out of fuel and to organise its distribution more efficiently.

Completion of the deal follows corporate trials, which showed BP that Andronics's technology would enable it to monitor remotely tank levels to facilitate new deliveries.

UtilityEye is based on a constellation of low-earth orbit satellites that can provide low-cost, two- way communication between the tanks and the oil distributor.

Andronics developed the UtilityEye remote unit so it could be connected to a tank within minutes.

The firm also developed software to enable the collection of readings from remote meters, and for communication and integration with another company's systems.

UtilityEye works by taking a measurement once a day from the oil or gas tank. When the tank becomes 40 per cent full the system sends an alert to the distributor via satellite. Warnings are subsequently sent as the level falls every 10 per cent to enable the distributor to send supplies.

The deal will initially involve the installation of Andronics UtilityEye product in one BP depot area in the north-west of England. But later this year Andronics expects the technology to be rolled out in different areas of Britain.

"We are putting together a complete package for BP, which should enable them to undertake a complete new way to do business more efficiently," said Mr Robert Andrews, founder of Andronics.

Andronics is already piloting its UtilityEye product with a US corporate and has recently appointed a distributor in the United States, Touchstar Americas.

It is also seeking to sell the product in the Italian market and has appointed Altair Engineering as distribution firm .

"This is just the first scheme. Once we have this up and running we are satisfied that there will be other deals coming our way," said Mr Andrews.

The firm is currently deciding whether to raise funding of about €3 million (£2.4 million) to increase its marketing and sales operation or to go it alone.

"We have people interested in investing," said Mr Andrews.

"One of the things we know is that we have a product with a worldwide market."

Andronics employs 20 staff in Derry, with one sales representative based in Dublin.

It has already won a contract in the Republic with Donegal County Council to monitor a water reservoir that is located in a remote area.

However, its satellite monitoring systems may have other potentially lucrative applications, such as monitoring and tracking motor vehicles. The company is working on a system that would enable insurance firms or parents to monitor the speeds of drivers.