ABB Ltd. (ABB - Free Report) has been awarded a contract by A/S Norske Shell to provide integrated service and support solutions for the Draugen offshore oil platform and the adjacent Ormen Lange onshore gas processing plant on the west coast of Norway.
The contract spans for 9 years and is valued at $260 million. The terms of the agreement also includes the option of two consecutive 2-year contracts covering both the oil and gas fields, along with the provision for future expansions, collaborations and upgrade.
Prior to this, ABB was awarded a contract by A/S Norske Shell in 2007, whereby ABB generated annual savings for five consecutive years. ABB has a technical expertise in the oil and gas sector and has successfully worked on a number of projects. The scope of this contract involves the system’s assimilation across the electric, instrument, control and telecommunication systems.
Earlier in Feb 2013, ABB received a contract to extend the export terminal of the Eni (Italian energy company) refinery in Taranto. Moving ahead, ABB believes that both the emerging markets and the mature markets will be a significant growth driver.
This is due to rising investments in energy globally benefits the company, leveraging the company’s growth initiatives from its key global investments. Industrial, utility and energy markets are expected to rapidly expand further and the industrializing economies will help to offset some of the declines in the already developed regions.
Based in Zurich, Switzerland, ABB Ltd. is a power and automation technology company and currently has a Zacks Rank #2 (Buy). One of the company’s competitors, which is worth considering at this moment is Franklin Electric (FELE - Free Report) , which also has a Zacks Rank #2 (Buy). Another competitor, Emerson Electric Company (EMR - Free Report) is good pick despite it being a Zacks Rank #3 stock, given the company’s performance and the number of new orders it is receiving.