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Oceaneering to Supply Hydraulic Connection Hardware for Chevron

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Oceaneering International, Inc. (OII - Free Report) has been assigned a contract by OneSubsea, a subsidiary of Schlumberger Limited (SLB - Free Report) , to supply the very first subsea hydraulic junction plates rated up to 20,000 pounds per square inch (“psi”) and related connection hardware.

The hardware is designed for the Anchor field to be developed in the deepwater Gulf of Mexico. Notably, Oceaneering will monitor the design, technology and manufacturing of the hydraulic connection hardware for Chevron Corporation’s (CVX - Free Report) Anchor field development project.  Moreover, it will manage the hardware’s integrated flying lead assemblies and installation equipment. Importantly, Oceaneering already delivered a portion of the order to OneSubsea.

In 2019, OneSubsea received a contract from Chevron to supply an integrated subsea production system for the deepwater Anchor field. Notably, this is the industry’s first 20,000 psi-rated field to be developed by Chevron in the Gulf of Mexico. The first phase involves a seven-well subsea development connected to a semisubmersible floating production unit (“FPU”).

The facility is estimated to have a design capacity of 75,000 barrels of crude oil and 28 million cubic feet of natural gas per day. Located in the Green Canyon area, the Anchor field is placed 225 kilometers off the Louisiana coast at a depth of nearly 1,524 meters below the sea surface. Further, the Anchor’s total potentially recoverable oil-equivalent resources are expected to be more than 440 million barrels.

Notably, the subsea hydraulic connection hardware addresses one of the industry’s major concerns related to the development of high-pressure fields, while enabling operators to explore depths in the safest way.

Company Profile & Price Performance

Headquartered in Houston, TX, Oceaneering is one of the leading suppliers of offshore equipment and technology solutions to the energy industry.

Shares of the company have outperformed the industry in the past three months. The stock has gained 129.8% compared with the industry’s 24.9% growth.

 

 

Zacks Rank & Stocks to Consider

Oceaneering currently carries a Zacks Rank #3 (Hold).

One better-ranked player in the energy space is Altus Midstream Company (ALTM - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Altus Midstream is likely to see earnings growth of 364.4% in 2021.

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