We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NOV Secures Key Contract for Argentina's First FLNG Project
Read MoreHide Full Article
Key Takeaways
NOV will provide its APL Submerged Swivel and Yoke system for Argentina's first offshore FLNG project.
The SSY system enables secure mooring and gas transfer without jetty infrastructure, reducing costs and risks.
This award marks NOV's first FLNG engagement in Argentina, reinforcing its global offshore LNG presence.
NOV Inc. (NOV - Free Report) , a Houston-based oil and gas equipment and services company, has secured a significant contract to supply its APL Submerged Swivel and Yoke (“SSY”) system for Argentina’s first-ever offshore floating LNG (“FLNG”) project, led by Southern Energy SA. This initiative is supported by a consortium of major industry players, including Pan American Energy, Pampa Energía, Harbour Energy (HBRIY - Free Report) , YPF Sociedad Anónima (YPF - Free Report) and Golar LNG Limited (GLNG - Free Report) , all key contributors to the advancement of Argentina’s offshore energy sector.
Argentina’s First FLNG Project Marks a Turning Point in Natural Gas Export
Positioned in the Gulf of San Matías, this project represents Argentina’s strategic entry into the global FLNG market. The development will utilize the redeployed Hilli Episeyo FLNG, previously in service offshore Cameroon, which is capable of producing approximately 2.4 million tons of LNG annually.
The repurposing of the Hilli Episeyo is a cost-efficient and environmentally forward-thinking solution. By leveraging an existing floating unit, the consortium is significantly reducing both project lead time and embedded carbon emissions compared with a conventional newbuild FLNG.
Role of NOV’s APL Submerged Swivel and Yoke System
At the core of this FLNG advancement lies the APL SSY system, a robust and compact technology built upon proven turret and swivel architecture. This system delivers secure mooring and continuous transfer of natural gas through a subsea pipeline, ensuring year-round, all-weather operations without the need for traditional jetty infrastructure.
This not only simplifies the overall project architecture but also mitigates risk, optimizes costs and enhances operational efficiency — key factors in offshore LNG environments.
Enhanced Project Efficiency Through Jetty-Free Design
The elimination of a fixed jetty, made possible by the SSY system, offers a significant competitive advantage. It drastically reduces the topside infrastructure requirements, resulting in faster deployment, reduced capital expenditure and streamlined construction logistics.
The compact and modular nature of the APL SSY system makes it particularly suitable for remote field developments, such as this offshore Argentine installation. It facilitates faster integration with redeployed FLNG units, such as the Hilli Episeyo, while ensuring longevity and reliability throughout the terminal's lifecycle.
Strategic Milestone for NOV and Offshore LNG Infrastructure
This award signifies NOV’s first engagement in Argentina’s FLNG sector, underlining its capability and reputation as a trusted partner for offshore solutions. The collaboration with Southern Energy SA signals a broader trend of global diversification in offshore LNG production and exportation. NOV’s entry into the Argentine market reinforces its strategic intent to support energy transitions across emerging economies.
According to Anders Vaalandsmyr, director of Technology and R&D at APL, supplying the SSY for Argentina’s first FLNG project was a proud moment and a step toward setting new standards in gas export with Southern Energy SA.
Technology Built for Long-Term Service in Challenging Offshore Conditions
The SSY system is engineered for long-term offshore deployment, featuring specific design elements that ensure it withstands harsh marine environments while maintaining seamless operation over decades. Its integrated design allows for minimal maintenance, higher uptime and better adaptability to varying offshore field requirements.
As offshore LNG projects often face operational hurdles due to isolation, unpredictable weather and logistics constraints, technologies like the APL SSY system are instrumental in maintaining stable and safe operations over extended periods.
Argentina’s LNG Ambitions Align with Global Demand Trends
With global LNG demand projected to rise significantly in the coming decades, Argentina is positioning itself as a key LNG exporter. The Gulf of San Matías FLNG project is not just a national milestone but a strategic regional move to leverage Argentina’s vast natural gas reserves and contribute to the global energy supply chain.
By investing in FLNG infrastructure and partnering with technological leaders like NOV, Argentina is laying the groundwork for sustainable and scalable LNG export capacity that meets international standards.
Reinforcing NOV’s Global Footprint in Offshore LNG Markets
This contract further cements NOV’s presence in the global offshore LNG market. With extensive expertise in turret and swivel technologies and a robust track record of engineering solutions for complex offshore installations, NOV continues to set benchmarks in floating production systems.
The deployment of the APL SSY system for Argentina’s first FLNG terminal is a testament to NOV’s innovative engineering capabilities, project reliability and adaptability to new geographical markets.
Conclusion
The contract given to NOV for supplying the APL Submerged Swivel and Yoke system for Argentina’s first offshore FLNG project shows how advanced technology, teamwork and smart use of resources come together. As Argentina starts exporting LNG, this project improves the country's energy infrastructure and demonstrates how reliable offshore technology can help to create cleaner energy solutions. With the Hilli Episeyo FLNG and NOV’s APL SSY system, the Gulf of San Matías project is a key example of innovation in Latin America's energy industry.
NOV's Zacks Rank
Currently, NOV has a Zacks Rank #4 (Sell), HBRIY and GLNG have a Zacks Rank #3 (Hold) each, and YPF has a Zacks Rank #5 (Strong Sell).
Image: Shutterstock
NOV Secures Key Contract for Argentina's First FLNG Project
Key Takeaways
NOV Inc. (NOV - Free Report) , a Houston-based oil and gas equipment and services company, has secured a significant contract to supply its APL Submerged Swivel and Yoke (“SSY”) system for Argentina’s first-ever offshore floating LNG (“FLNG”) project, led by Southern Energy SA. This initiative is supported by a consortium of major industry players, including Pan American Energy, Pampa Energía, Harbour Energy (HBRIY - Free Report) , YPF Sociedad Anónima (YPF - Free Report) and Golar LNG Limited (GLNG - Free Report) , all key contributors to the advancement of Argentina’s offshore energy sector.
Argentina’s First FLNG Project Marks a Turning Point in Natural Gas Export
Positioned in the Gulf of San Matías, this project represents Argentina’s strategic entry into the global FLNG market. The development will utilize the redeployed Hilli Episeyo FLNG, previously in service offshore Cameroon, which is capable of producing approximately 2.4 million tons of LNG annually.
The repurposing of the Hilli Episeyo is a cost-efficient and environmentally forward-thinking solution. By leveraging an existing floating unit, the consortium is significantly reducing both project lead time and embedded carbon emissions compared with a conventional newbuild FLNG.
Role of NOV’s APL Submerged Swivel and Yoke System
At the core of this FLNG advancement lies the APL SSY system, a robust and compact technology built upon proven turret and swivel architecture. This system delivers secure mooring and continuous transfer of natural gas through a subsea pipeline, ensuring year-round, all-weather operations without the need for traditional jetty infrastructure.
This not only simplifies the overall project architecture but also mitigates risk, optimizes costs and enhances operational efficiency — key factors in offshore LNG environments.
Enhanced Project Efficiency Through Jetty-Free Design
The elimination of a fixed jetty, made possible by the SSY system, offers a significant competitive advantage. It drastically reduces the topside infrastructure requirements, resulting in faster deployment, reduced capital expenditure and streamlined construction logistics.
The compact and modular nature of the APL SSY system makes it particularly suitable for remote field developments, such as this offshore Argentine installation. It facilitates faster integration with redeployed FLNG units, such as the Hilli Episeyo, while ensuring longevity and reliability throughout the terminal's lifecycle.
Strategic Milestone for NOV and Offshore LNG Infrastructure
This award signifies NOV’s first engagement in Argentina’s FLNG sector, underlining its capability and reputation as a trusted partner for offshore solutions. The collaboration with Southern Energy SA signals a broader trend of global diversification in offshore LNG production and exportation. NOV’s entry into the Argentine market reinforces its strategic intent to support energy transitions across emerging economies.
According to Anders Vaalandsmyr, director of Technology and R&D at APL, supplying the SSY for Argentina’s first FLNG project was a proud moment and a step toward setting new standards in gas export with Southern Energy SA.
Technology Built for Long-Term Service in Challenging Offshore Conditions
The SSY system is engineered for long-term offshore deployment, featuring specific design elements that ensure it withstands harsh marine environments while maintaining seamless operation over decades. Its integrated design allows for minimal maintenance, higher uptime and better adaptability to varying offshore field requirements.
As offshore LNG projects often face operational hurdles due to isolation, unpredictable weather and logistics constraints, technologies like the APL SSY system are instrumental in maintaining stable and safe operations over extended periods.
Argentina’s LNG Ambitions Align with Global Demand Trends
With global LNG demand projected to rise significantly in the coming decades, Argentina is positioning itself as a key LNG exporter. The Gulf of San Matías FLNG project is not just a national milestone but a strategic regional move to leverage Argentina’s vast natural gas reserves and contribute to the global energy supply chain.
By investing in FLNG infrastructure and partnering with technological leaders like NOV, Argentina is laying the groundwork for sustainable and scalable LNG export capacity that meets international standards.
Reinforcing NOV’s Global Footprint in Offshore LNG Markets
This contract further cements NOV’s presence in the global offshore LNG market. With extensive expertise in turret and swivel technologies and a robust track record of engineering solutions for complex offshore installations, NOV continues to set benchmarks in floating production systems.
The deployment of the APL SSY system for Argentina’s first FLNG terminal is a testament to NOV’s innovative engineering capabilities, project reliability and adaptability to new geographical markets.
Conclusion
The contract given to NOV for supplying the APL Submerged Swivel and Yoke system for Argentina’s first offshore FLNG project shows how advanced technology, teamwork and smart use of resources come together. As Argentina starts exporting LNG, this project improves the country's energy infrastructure and demonstrates how reliable offshore technology can help to create cleaner energy solutions. With the Hilli Episeyo FLNG and NOV’s APL SSY system, the Gulf of San Matías project is a key example of innovation in Latin America's energy industry.
NOV's Zacks Rank
Currently, NOV has a Zacks Rank #4 (Sell), HBRIY and GLNG have a Zacks Rank #3 (Hold) each, and YPF has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.