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.
Shell Awards Vallourec for Major OCTG Contract at the Orca Project
Read MoreHide Full Article
Key Takeaways
Shell awarded a major OCTG contract for the Orca deepwater gas-condensate project offshore Brazil.
Vallourec will deliver seamless OCTG pipes, VAM premium connections and drilling services for offshore wells.
Drilling is set for April 2027, with 10 wells needing 12,000-15,000 tons of pipe.
Shell plc (SHEL - Free Report) , the British energy giant, has awarded a major contract to Vallourec S.A., a French tubular solutions provider to the energy industry. The award of the contract followed a competitive bidding process. Per the terms of the contract, Vallourec will be responsible for delivering OCTG (Oil Country Tubular Goods) products and services, which involve high-performance steel pipes used in oil and gas production activities. These products and the associated services will be used in offshore operations at the Orca project.
The Orca project was formerly known as the Gato do Mato, which is a massive deepwater development offshore Brazil. The drilling operations for the project are expected to start in April 2027. The current development plan involves drilling 10 wells, which should require an estimated 12,000 to 15,000 tons of pipe. The contract covers the entire OCTG requirements for Shell’s offshore wells in this project, including the supply of seamless pipes and the proprietary VAM® premium connections. The pipes included in the contract range from 4.5 inches to 18 inches in diameter and will come in both carbon and stainless-steel tubular materials. Vallourec will also provide all the related accessories needed to support drilling activities at the deepwater development.
Apart from the tubular solutions, Vallourec will also support Shell by providing a wide range of value-added services for both onshore and offshore operations. These services include desk engineering, material logistics, supervision of offshore operations and repairs for equipment returned from the rig. These services will enable Shell to increase its operational efficiency and reduce risks.
Shell’s Orca gas-condensate discovery offshore Brazil is expected to start production in 2029. The British energy giant has awarded the integrated engineering, procurement, construction and installation scope for the project to TechnipFMC.
Subsea7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Shell Awards Vallourec for Major OCTG Contract at the Orca Project
Key Takeaways
Shell plc (SHEL - Free Report) , the British energy giant, has awarded a major contract to Vallourec S.A., a French tubular solutions provider to the energy industry. The award of the contract followed a competitive bidding process. Per the terms of the contract, Vallourec will be responsible for delivering OCTG (Oil Country Tubular Goods) products and services, which involve high-performance steel pipes used in oil and gas production activities. These products and the associated services will be used in offshore operations at the Orca project.
The Orca project was formerly known as the Gato do Mato, which is a massive deepwater development offshore Brazil. The drilling operations for the project are expected to start in April 2027. The current development plan involves drilling 10 wells, which should require an estimated 12,000 to 15,000 tons of pipe. The contract covers the entire OCTG requirements for Shell’s offshore wells in this project, including the supply of seamless pipes and the proprietary VAM® premium connections. The pipes included in the contract range from 4.5 inches to 18 inches in diameter and will come in both carbon and stainless-steel tubular materials. Vallourec will also provide all the related accessories needed to support drilling activities at the deepwater development.
Apart from the tubular solutions, Vallourec will also support Shell by providing a wide range of value-added services for both onshore and offshore operations. These services include desk engineering, material logistics, supervision of offshore operations and repairs for equipment returned from the rig. These services will enable Shell to increase its operational efficiency and reduce risks.
Shell’s Orca gas-condensate discovery offshore Brazil is expected to start production in 2029. The British energy giant has awarded the integrated engineering, procurement, construction and installation scope for the project to TechnipFMC.
SHEL’s Zacks Rank and Key Picks
SHEL currently carries a Zacks Rank #3 (Hold).
Some top-ranked stocks from the energy sector are Subsea7 S.A. (SUBCY - Free Report) , Oceaneering International (OII - Free Report) and FuelCell Energy (FCEL - Free Report) . While Subsea7 currently sports a Zacks Rank #1 (Strong Buy), Oceaneering and FuelCell carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Subsea7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.