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Equinor (EQNR) Deepens Marine Services Pact With DeepOcean

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Equinor ASA (EQNR - Free Report) , the Norwegian state-owned energy giant, has inked a significant deal with homegrown ocean services provider DeepOcean, solidifying their partnership in subsea infrastructure and cable repair for both offshore oil & gas and renewable energy sectors.

Under the agreement, Equinor and DeepOcean will engage in a comprehensive array of marine services, including subsea intervention and repair contingencies for pipelines, structures and high-voltage cables. The duration of this strategic alliance spans four years initially, with provisions for extending up to an additional four years, underscoring a commitment to long-term collaboration and mutual growth.

DeepOcean, headquartered in Haugesund, Norway, will spearhead contract delivery, leveraging its international operations as needed. The agreement also allows for potential engineering studies and preparedness initiatives, further enhancing operational readiness and adaptability.

Geographically, the agreement involves work across the Norwegian continental shelf (NCS) and extends internationally to cater to planned Equinor projects. Additionally, it includes contingency work for members of the Pipeline Repair System & Intervention (PRSI) pool. The PRSI pool, consisting of 23 energy companies, serves as a collaborative platform for managing offshore pipeline and power cable repair contingencies.

For offshore renewable projects, the agreement includes marine services related to high-voltage cable installation, maintenance and repair. DeepOcean's extensive experience in subsea operations, spanning various industries, positions it as a versatile partner capable of tackling complex challenges across the energy spectrum. The company's multidisciplinary approach, drawing insights from both oil & gas and renewable energy sectors, underscores its adaptability and innovative prowess.

DeepOcean has received initial assignments under the new agreement, including seabed preparations and intricate remote hot tap tie-in operations across multiple NCS locations. Additionally, the company has provided crucial marine support for pipeline inspection and survey tasks in collaboration with Equinor and Gassco.

In conclusion, the strategic alliance between Equinor and DeepOcean marks the beginning of a new era in the domain of subsea infrastructure and cable maintenance.

Zacks Rank & Key Picks

Equinor currently carries a Zack Rank #4 (Sell).

Some better-ranked stocks in the energy sector are Sunoco LP (SUN - Free Report) , Murphy USA Inc. (MUSA - Free Report) and Global Partners (GLP - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow. 

The Zacks Consensus Estimate for SUN’s 2024 earnings per share (EPS) is pegged at $4.96. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

Murphy USA is a leading independent retailer of motor fuel and convenience merchandise in the United States.

The Zacks Consensus Estimate for MUSA’s 2024 EPS is pegged at $26.32. The company has a Zacks Style Score of B for Growth and B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

Global Partners is a leading operator of gasoline stations and convenience stores. Over the past 30 days, GLP has witnessed upward earnings estimate revisions for 2023 and 2024.

The Zacks Consensus Estimate for Global Partners’ 2024 and 2025 EPS is pegged at $3.90 and $4.47, respectively. GLP currently has a Zacks Style Score of A for Value.

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