Oilfield services company Oceaneering International Inc. (OII - Free Report) has entered into a deal with U.S. energy behemoth, ExxonMobil Corporation (XOM - Free Report) , to purvey a production control umbilical.
Per the agreement, Oceaneering will provide an electro-hydraulic, steel tube umbilical for the development of the Julia oil field, which is based in the Gulf of Mexico. The umbilical has a total length of roughly 22.5 kilometers.
Oceaneering is planning to manufacture the product at its facility located in Panama City, Florida. The delivery is projected to be in the first half of 2015.
Oceaneering added that the umbilical is expected to provide electrical power signals, hydraulic control fluids and chemicals, for operating and monitoring the subsea wells and manifold in the oil field.
Last month, Oceaneering inked a deal with Italian oil and gas contractor Saipem to provide ten subsea production control umbilicals and two electrical power cables for the development of the Burullus West Delta Deep Marine Phase IXa project, which is based offshore Egypt.
Houston, Texas-based Oceaneering primarily serves the global offshore oilfield industry by providing engineered products and services. The company also offers inspection works, subsea products and services. Moreover, Oceaneering provides technological skills to the aerospace and defense sectors.
Oceaneering currently carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.
However, in the oilfield services sector, two firms that are expected to significantly outperform the broader U.S. equity market over the next one to three months are Exterran Holdings Inc. and Dawson Geophysical Company (DWSN - Free Report) . Both the firms currently retain a Zacks Rank #1 (Strong Buy).