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Shell (SHEL) Collaborates With Seatrium to Enhance FPS Technology
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Shell PLC (SHEL - Free Report) , the British oil and gas major, has signed a non-binding memorandum of understanding (MoU) with Seatrium, Singapore’s state-owned marine and offshore contractor. The MoU aims to explore and enhance collaboration opportunities in the domain of floating production systems (FPSs) by utilizing the companies’ combined engineering capabilities and technologies.
The agreement between Seatrium and Shell Global Solutions International is aimed at driving project standardization and replication involved in FPS projects. The partnership also seeks to promote the adoption of best practices in the design and construction of FPSs.
Both companies plan to leverage their extensive experience and knowledge garnered from previous FPS-related projects to refine and enhance the benefits of replication. The collaboration is expected to bring together the strength of both companies, allowing them to tap into the collective competencies and technologies and share the knowledge gained from the previous projects.
Shell and Seatrium have already worked together on various projects, including the Sparta FPU in the U.S. Gulf of Mexico. The Sparta FPU contract entailed the construction and integration of the hull, topsides and living quarters of the floating production unit.
Prior to this, the companies had also worked together on the fabrication of the Vito FPU in 2021 and the Whale FPU in 2023. According to Seatrium, the Sparta is an advanced iteration of the Vito FPU and the Whale FPU. In particular, Sparta is said to mirror nearly 95% of Whale’s hull and 85% of its topsides.
Over the next five years, Seatrium plans to tap into floating production systems as one of four key areas. According to the company, the market for floating production systems is worth SGD 500 billion ($367 billion). Seatrium expects the supply of floating production, storage and offloading units to go up drastically in the next few years, with awards for the company reaching 50 units by 2028. In order to support offshore production of oil and gas, the company has predicted its capital expenditure on floaters to reach SGD 150 billion over the next five years.
Seatrium expressed its enthusiasm about deepening its collaboration with Shell to leverage the combined competencies and technologies of both companies. According to the company, the collaboration should allow it to enhance its project management practices and achieve operational efficiency, eventually benefiting both companies in the future.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior- year reported figure, signaling a bright production outlook.
Hess Midstream LP owns, operates, develops and acquires a wide range of midstream assets, providing services to Hess Corporation and other third-party customers. The partnership has a stable fee-based revenue model secured via long-term commercial contracts. Since Hess Midstream operates through 100% fee-based contracts, it is exposed to minimal commodity price risks.
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Shell (SHEL) Collaborates With Seatrium to Enhance FPS Technology
Shell PLC (SHEL - Free Report) , the British oil and gas major, has signed a non-binding memorandum of understanding (MoU) with Seatrium, Singapore’s state-owned marine and offshore contractor. The MoU aims to explore and enhance collaboration opportunities in the domain of floating production systems (FPSs) by utilizing the companies’ combined engineering capabilities and technologies.
The agreement between Seatrium and Shell Global Solutions International is aimed at driving project standardization and replication involved in FPS projects. The partnership also seeks to promote the adoption of best practices in the design and construction of FPSs.
Both companies plan to leverage their extensive experience and knowledge garnered from previous FPS-related projects to refine and enhance the benefits of replication. The collaboration is expected to bring together the strength of both companies, allowing them to tap into the collective competencies and technologies and share the knowledge gained from the previous projects.
Shell and Seatrium have already worked together on various projects, including the Sparta FPU in the U.S. Gulf of Mexico. The Sparta FPU contract entailed the construction and integration of the hull, topsides and living quarters of the floating production unit.
Prior to this, the companies had also worked together on the fabrication of the Vito FPU in 2021 and the Whale FPU in 2023. According to Seatrium, the Sparta is an advanced iteration of the Vito FPU and the Whale FPU. In particular, Sparta is said to mirror nearly 95% of Whale’s hull and 85% of its topsides.
Over the next five years, Seatrium plans to tap into floating production systems as one of four key areas. According to the company, the market for floating production systems is worth SGD 500 billion ($367 billion). Seatrium expects the supply of floating production, storage and offloading units to go up drastically in the next few years, with awards for the company reaching 50 units by 2028. In order to support offshore production of oil and gas, the company has predicted its capital expenditure on floaters to reach SGD 150 billion over the next five years.
Seatrium expressed its enthusiasm about deepening its collaboration with Shell to leverage the combined competencies and technologies of both companies. According to the company, the collaboration should allow it to enhance its project management practices and achieve operational efficiency, eventually benefiting both companies in the future.
Zacks Rank and Key Picks
Currently, SHEL holds a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Archrock Inc. (AROC - Free Report) , SM Energy (SM - Free Report) and Hess Midstream LP (HESM - Free Report) . Archrock and SM Energy presently sport a Zacks Rank #1 (Strong Buy) each, while Hess Midstream carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior- year reported figure, signaling a bright production outlook.
Hess Midstream LP owns, operates, develops and acquires a wide range of midstream assets, providing services to Hess Corporation and other third-party customers. The partnership has a stable fee-based revenue model secured via long-term commercial contracts. Since Hess Midstream operates through 100% fee-based contracts, it is exposed to minimal commodity price risks.