Saipem S.p.A. (SAPMF Quick QuoteSAPMF - Free Report) , an Italian drilling, engineering and construction services provider to the energy industry, has secured a new subsea contract for work on Azule Energy's West Hub Tails project offshore Angola. The contract is estimated to be worth approximately $350 million. The West Hub Tails project is part of the broader Agogo Integrated West Hub Development in Block 15/06, located approximately 180 km off the coast of Angola.

Per the terms of the contract, Saipem will cover the engineering and fabrication of the subsea equipment. The company is also responsible for transporting and installing the subsea infrastructure, which includes approximately 62 kilometers of flowlines, risers and umbilicals. Flowlines and risers are critical components used in offshore oil and gas production to transport hydrocarbons from the field to the production facilities. In addition, umbilicals deliver power and electrical signals to subsea equipment. The subsea infrastructure will be tied back to the Agogo floating production, storage and offloading (FPSO) vessel.

To carry out the offshore activities, Saipem will utilize the construction vessels FDS and Normand Maximus. The fabrication work will take place at Saipem's Ambriz yard in Angola and involve the local workforce in the related activities. Saipem has stated that the contract is expected to have a duration of nearly 2.5 years. 

The West Hub Tails project involves extending the productive life of four fields, namely the Sangos, Ochigufu, Mpungi and Vandumbu fields, by redirecting production to the Agogo FPSO. These fields previously produced via the Ngoma FPSO, which began operating in 2014. With Ngoma nearing the end of its design life, production will be rerouted to the newer Agogo FPSO, which features advanced technology and modern operating standards aimed at lowering emissions. This will allow Azule Energy to continue production and maximize recovery from these mature fields. Azule Energy is a joint venture company owned by Eni and BP.

SAPMF’s Zacks Rank & Key Picks

SAPMF currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Par Pacific Holdings (PARR Quick QuotePARR - Free Report) , Valero Energy (VLO Quick QuoteVLO - Free Report) and Galp Energia SGPS SA (GLPEY Quick QuoteGLPEY - Free Report) . While Par Pacific and Valero sport a Zacks Rank #1 (Strong Buy) each, Galp Energia carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.

Par Pacific Holdings operates an integrated downstream energy business across the United States, with fuel retail operations in Hawaii, Washington and Idaho, refining operations in Hawaii, Wyoming, Washington and Montana, and a supporting logistics network. Its refineries have a combined crude oil throughput capacity of 219,000 barrels per day and produce gasoline, diesel, jet fuel, marine fuels, asphalt and other petroleum products.

Valero Energy is a leading refining player with a robust network of 14 refineries and a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. VLO’s refineries have a combined Nelson Complexity Index of 11.5, which implies that they can process a wide variety of feedstocks, convert them into higher-value products and shift product yields according to market conditions.

Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region. It is engaged in the refining and marketing of oil products and gas, as well as marketing and sales.