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Oceaneering, Statoil Ink Deal for Johan Castberg Project

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Oceaneering International, Inc. (OII - Free Report) recently entered into a deal with Statoil ASA (STO - Free Report) for supplying umbilicals.

The umbilicals will be utilized for the development of Statoil’s Johan Castberg project — located off the coast of Norway. The dynamic and static control umbilicals will likely be designed and manufactured at the facility of Oceaneering in Rosyth, Scotland. Oceaneering expects the delivery of the umbilicals, with probable length of 39 kilometers, by early 2021.  

Investors should know that the hydraulic control fluid and chemicals are likely be transmitted through the umbilicals. The umbilicals are also expected to supply fiber-optics and electricity for the operation of subsea wells.

For the development of the Johan Castberg field, Statoil has proposed a plan last December. Also, the company projects the field to have significant recoverable oil and natural gas resources — estimated at 450 to 650 million barrels of oil equivalent.

Headquartered in Houston, TX, Oceaneering is the contractor of engineered services from the offshore energy industries. The company’s pricing chart is not impressive as the stock has lost 16.7% over the past year, compared with the industry’s19% decline.

 

 

The company carries a Zacks Rank #4 (Sell). Meanwhile, better-ranked players in the energy sector include Chevron Corporation (CVX - Free Report) and Denbury Resources Inc. (DNR - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  

San Ramon, CA-based Chevron is a leading integrated energy player. The company is expected to post year-over-year earnings growth of 335% in 2017.

Headquartered in Plano, TX, Denbury is an upstream energy player. The company’s 2017 earnings are estimated to grow 125%.

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