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Repsol-McDermott Partner for Gulf of Mexico Development

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Repsol Exploración México S.A., an affiliate of Repsol, S.A. (REPYY - Free Report) , has awarded a front-end engineering design (FEED) contract to McDermott for the development of the Polok and Chinwol fields located in the Gulf of Mexico.

An Insight Into REPYY’s Contract With McDermott

Per the contract, McDermott will provide REPYY with FEED services that will look into the project’s engineering, procurement, construction and installation (EPCI) of components like subsea, umbilicals, risers and flowlines.

Polok and Chinwol wells were drilled in Block 29 of the Salina basin and are located in the Gulf of Mexico, off-coast Veracruz and Tabasco.

Polok-1, drilled to a total depth of 2,620 meter, discovered a net column of oil of more than 200 meter from two zones in the lower Miocene. The Chinwol-1 exploration well, with a total depth of 1,850 meter, uncovered a net column of oil of more than 150 meter from three zones in the lower Pliocene.

Repsol is the operator of the Block 29 syndicate, holding 30% of the stake, with other partners like PC Carigali Mexico Operations holding 28.33%, Wintershall DEA holding 25% and PTTEP Mexico E&P Ltd. holding 16.67%.

McDermott’s Take on the Contract

McDermott states that it is well positioned to provide innovative and efficient FEED solutions to Repsol for its development in the Polok and Chinwol fields, as the company has far-reaching experience in subsea engineering and also has an in-house capability in providing the EPCI facilities.

McDermott also has a vision to take the project further from its Houston office by focusing on cost-effectiveness, safety, efficiency and quality delivery.

This project highlights McDermott’s leading position in complex projects like subsea engineering and its commitment to delivering continued advanced solutions.

REPYY’s Zacks Rank and Key Picks

Repsol is engaged in the exploration, development and production of crude oil products and natural gas. It also transports petroleum products and liquefied petroleum gas and refines petroleum. Currently, REPYY has a Zacks Rank #5 (Strong Sell).

Investors interested in the energy sector might look at some better-ranked stocks like Mach Natural Resources LP (MNR - Free Report) , Flotek Industries, Inc. (FTK - Free Report) and Targa Resources Corp. (TRGP - Free Report) .While Mach currently sports a Zacks Rank #1 (Strong Buy), Flotek Industries and Targa Resources each carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Mach Natural Resources LP is an independent upstream oil and gas company that focuses on the acquisition, development and production of oil, natural gas and natural gas liquids reserves. The Zacks Consensus Estimate for MNR’s 2024 earnings indicates 205.56% year-over-year growth.

Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. The Zacks Consensus Estimate for FTK’s 2024 earnings indicates 125% year-over-year growth.

Houston, TX-based Targa Resources Corp. is a premier energy infrastructure company and a leading provider of integrated midstream services in North America. The Zacks Consensus Estimate for TRGP’s 2024 earnings indicates 71.58% year-over-year growth.

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