ABB Ltd. (ABB - Analyst Report) recently received a $20 million oil & gas contract from the Chinese shipyard COSCO Nantong. ABB will be providing power and automation technologies to a floating production, storage and offloading vessel (FPSO) built by COSCO Nantong for Dana Petroleum. In addition, ABB will be responsible for the design, engineering, installation, commissioning and project management. The contract was signed during the second quarter of 2013.
Situated on the Western Isles field on the U.K. Continental Shelf, the FPSO will be attached to subsea installations on 170 meters depth on the Harris and Barra offshore fields. It will comprise Sevan Marine's characteristic cylindrical design. The production is scheduled to begin in 2015 with five production and four water injection wells. Dana Petroleum plc expects an output of 40,000 barrels of oil per day, which will be exported through shuttle tankers.
This contract is the first of its kind for ABB from a Chinese shipyard. ABB’s integrated and compact automation technologies are ideal for floating production units and are fast gaining popularity in other markets as well. Further, ABB is known for its efficient and safe operations as well as consistent power distribution.
Dana Petroleum plc, is a $4 billion oil & gas company operating in U.K., Egypt, Norway, the Netherlands and Africa. The company is the operator of the Western Isles project, owning 77% and the remaining 23% being owend by Cieco. Dana is a wholly owned subsidiary of the Korea National Oil Corporation and has a daily production of about 60,000 barrels of oil.
ABB's automation technology includes safety and automation systems (SAS), information management system (IMS), condition monitoring system (CMS) and operator training system (OTS). Most power equipments will include 11 kilovolt and 690 kilovolt switchgear, transformers, high voltage and low voltage variable speed drives and uninterruptible power supply (UPS). In addition, ABB will also deliver 16 different telecommunications systems; including the public address system, entertainment, meteorological and a Global Maritime Distress and Safety System (GMDSS).
Based in Zurich, ABB is a leading provider of Process Automation Technology by providing its customers with solutions such as instrumentation, automation and optimization of industrial processes. The industries served include oil and gas, power, chemicals and pharmaceuticals, pulp and paper, metals and minerals, and marine and turbocharging.
ABB currently has a Zacks Rank #3 (Hold). However, some other stocks which are worth considering at the moment include Orion Marine Group Inc (ORN - Snapshot Report) , Eaton Corporation Plc (ETN - Analyst Report) and Plug Power Inc (PLUG - Snapshot Report) . All three have a Zacks Rank #2 (Buy).