Emerson Process Management, part of Emerson Electric Co. (EMR - Free Report) , recently received a $17-million contract from Premier Oil for the automation of a new offshore production platform. This new offshore platform is located in the Solan field on the U.K. Continental Shelf.
Emerson is the main automation and electric contractor for the project and is required to provide a complete package of services, which include process management, detailed design, configuration, acceptance testing, commissioning and startup support. This apart, Emerson will also be supplying electrical switchgear, uninterruptible power supplies and satellite telecommunication equipment. In addition, Emerson will also provide an operator training solution that reproduces real-world situations to prepare operations personnel for incident management.
Emerson will be deploying its PlantWeb digital plant architecture, which will include DeltaV digital automation system, DeltaV SIS process safety system, CSI 6500 Machinery Health Monitor and AMS Suite predictive maintenance software. This apart, other machines will include Emerson’s Rosemount pressure, temperature, radar level, and vortex flow transmitters; Micro Motion Coriolis flowmeters and Roxar sand monitors and multiphase flowmeters.
This new offshore production platform is designed for unmanned operations and is a model for future developments in marginal fields. Such automated platforms not only increase profits but also ensure complete safety of workers. The Solan field is expected to generate about 40 million barrels of oil, with a daily production capacity of 24,000 barrels initially by the end of 2014.
Emerson’s Process Management segment offers a comprehensive set of products and technologies as well as engineering and project management services for precision measurement, control, monitoring and asset optimization of oil and gas reservoirs and power generating plants, or plants that process or treat such items as oil, natural gas and petrochemicals; food and beverages; pulp and paper; pharmaceuticals; and municipal water supplies. In the latest reported quarter, the segment reported a revenue increase of 3% driven by strong performance in the energy and chemical markets.
Prior to the Premier Oil contract, this division has procured another other major contract in the recent past. In Jul 2013, Emerson Process Management received an automation contract from South Africa-based energy and chemical company Sasol Ltd. (SSL - Free Report) . As per the contract, Emerson will automate Sasol’s gas-to-liquids (GTL) and world-scale ethane cracker complex in Lake Charles, La. Sasol plans to invest approximately $16 billion to $21 billion for the automation of Sasol’s two facilities.
Emerson currently carries a Zacks Rank #3 (Hold). Other stocks in the industry that look promising at the moment are Plug Power Inc (PLUG - Free Report) and AO Smith Corp (AOS - Free Report) . Both carry a Zacks Rank #2 (Buy).