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TechnipFMC (FTI) Wins Shell's Sparta Development Contract
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TechnipFMC (FTI - Free Report) , an offshore contractor, has been awarded a contract for the first integrated engineering, procurement, construction, and installation (iEPCI) project by Shell (SHEL - Free Report) for its Sparta Development Project in the U.S. Gulf of Mexico. In this project, TechnipFMC will be utilizing high-pressure subsea production systems rated up to 20,000 pounds per square inch (psi).
Sparta is a deep-water development project in the U.S. Gulf of Mexico. The development is poised to achieve a peak production of approximately 90,000 barrels of oil equivalent per day. Shell retains a 51% operating interest in the project, along with Equinor, which holds the remaining 49%. The project is scheduled to start production in 2028.
Per the terms of the contract, TechnipFMC is responsible for manufacturing and installing subsea production systems, umbilicals, risers and flowlines for the project. FTI describes the project as “substantial”, which means the contract is valued in the range of $250-$500 million. However, no financial details have been revealed regarding the deal.
The tree systems used for the Sparta project will be the first in Shell to be qualified for 20K applications. They are specifically engineered to withstand high-pressure conditions and meet the requirements of the greenfield development. Additionally, Sparta will serve as the first replicable project undertaken by Shell that uses all-electric topside compression equipment.
According to FTI’s statement, the company will leverage its leading-edge subsea technology combined with its proven integrated execution model, iEPCI. This will lead to improved project economics for Sparta.
Zacks Rank and Key Picks
Currently, FTI and SHEL both carry a Zacks Rank #3 (Hold).
Investors might want to look at some better-ranked stocks in the energy sector, such as Energy Transfer LP (ET - Free Report) and Oceaneering International (OII - Free Report) . Both Energy Transfer and Oceaneering International sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.
Oceaneering International is a market-leading supplier of offshore equipment and technology solutions to the energy industry. The company has projected an increase in free cash flows for 2024. The bright outlook is supported by the growing market demand for its mobile robotic forklifts and underride vehicles.
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TechnipFMC (FTI) Wins Shell's Sparta Development Contract
TechnipFMC (FTI - Free Report) , an offshore contractor, has been awarded a contract for the first integrated engineering, procurement, construction, and installation (iEPCI) project by Shell (SHEL - Free Report) for its Sparta Development Project in the U.S. Gulf of Mexico. In this project, TechnipFMC will be utilizing high-pressure subsea production systems rated up to 20,000 pounds per square inch (psi).
Sparta is a deep-water development project in the U.S. Gulf of Mexico. The development is poised to achieve a peak production of approximately 90,000 barrels of oil equivalent per day. Shell retains a 51% operating interest in the project, along with Equinor, which holds the remaining 49%. The project is scheduled to start production in 2028.
Per the terms of the contract, TechnipFMC is responsible for manufacturing and installing subsea production systems, umbilicals, risers and flowlines for the project. FTI describes the project as “substantial”, which means the contract is valued in the range of $250-$500 million. However, no financial details have been revealed regarding the deal.
The tree systems used for the Sparta project will be the first in Shell to be qualified for 20K applications. They are specifically engineered to withstand high-pressure conditions and meet the requirements of the greenfield development. Additionally, Sparta will serve as the first replicable project undertaken by Shell that uses all-electric topside compression equipment.
According to FTI’s statement, the company will leverage its leading-edge subsea technology combined with its proven integrated execution model, iEPCI. This will lead to improved project economics for Sparta.
Zacks Rank and Key Picks
Currently, FTI and SHEL both carry a Zacks Rank #3 (Hold).
Investors might want to look at some better-ranked stocks in the energy sector, such as Energy Transfer LP (ET - Free Report) and Oceaneering International (OII - Free Report) . Both Energy Transfer and Oceaneering International sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.
Oceaneering International is a market-leading supplier of offshore equipment and technology solutions to the energy industry. The company has projected an increase in free cash flows for 2024. The bright outlook is supported by the growing market demand for its mobile robotic forklifts and underride vehicles.