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Oceaneering (OII) & Stork Win Deals Worth $6.5M From Neptune

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Oceaneering International, Inc. (OII - Free Report) along with engineering and construction firm Fluor Corporation's (FLR - Free Report) subsidiary Stork has clinched integrity management and fabric maintenance contracts on Neptune Energy's Cygnus gas production facility, offshore the UK.

Cygnus is integral to the UK North Sea energy infrastructure with a capacity to produce nearly 6% of UK domestic gas demand. It is jointly held by Neptune Energy, the operator with 38.75% interest and Spirit Energy with 61.25% stake.

Valued at $6.5 million, the deals are awarded to Oceaneering and Stork under a three-year agreement with an option of two one-year extensions. Per the terms of the pact, oilfield services provider Oceaneering will supply integrity management services to the gas platform. These include pressure systems, structural, pipeline, erosion management as well as offshore inspection services. Meanwhile, Stork will provide fabric maintenance along with scaffolding services for Cygnus.

Crawford Tennant, Oceaneering’s director of Integrity Management and Digital Solutions (IMDS), Europe, said: “Oceaneering is delighted to win this integrity management services contract from Neptune, expanding our existing scope of work. We look forward to working with the Cygnus team to deliver the high-quality integrity services and technologies necessary for Neptune to achieve their asset reliability and efficiency goals”.

Earlier this month, Oceaneering registered quite a few multi-million dollar deal wins in the fourth quarter of 2020 for its Integrity Management and Digital Solutions unit (IMDS). These contracts, exceeding an amount of $250 million, are obtained from major clients and operators and are mostly for a period of three to five years. Nearly 55% of the total contracts represents the expansion of the existing deals while the remaining 45% reflects the brand new businesses.

Per the agreements, the terms of activity involve software, data services, monitoring and diagnostic services, integrity management and remote integrity engineering. It also engages in remote and onsite assessment services for both onshore and offshore brownfield and greenfield projects. These contracts will cover places like Qatar, Angola, Azerbaijan, the United States and Australia with the sites housing vessels, LNG plants, LNG storage facilities, terminals and production facilities.

Company Summary

Founded in 1964, Oceaneering is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. Headquartered in Houston, TX, the company provides specialized products and services for all phases of the offshore oilfield lifecycle, right from exploration to decommissioning with focus on deep water.

Zacks Rank & Key Picks

Oceaneering currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are DCP Midstream Partners, LP (DCP - Free Report) and Altus Midstream Company (ALTM - Free Report) , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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