We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
TechnipFMC (FTI - Free Report) , a global leader in the oil and gas industry, has been awarded a significant contract by Petrobras (PBR - Free Report) , the Brazilian state-owned oil company, to supply flexible pipes for the pre-salt fields offshore Brazil. This contract, valued between $75 million and $250 million, highlights TechnipFMC's capability to design, engineer, and manufacture 14 kilometers of gas injection riser pipes, along with providing associated services such as packing and storage. These flexible pipes are essential for transporting oil and gas from offshore fields to the surface. They are also used for gas injection, which helps to improve oil recovery.
The Pre-Salt Fields: A Strategic Location
Understanding the Pre-Salt Fields: Before we delve deeper into the project, let's take a moment to understand the significance of the pre-salt fields offshore Brazil. These reserves are located beneath a thick layer of salt deep below the ocean's surface. Extracting oil and gas from this challenging environment requires cutting-edge technology and expertise.
Brazil's Energy Potential: Brazil's pre-salt fields are a critical asset in the country's energy portfolio. They are estimated to hold vast reserves of oil and gas, making them a strategic resource for the nation's energy security and economic growth.
The Scope of the Project
Design, Engineering, and Manufacturing: TechnipFMC's role in this project is multifaceted. They are tasked with designing, engineering, and manufacturing a total of 14 kilometers of gas injection riser pipes. This involves intricate planning, cutting-edge technology, and an unparalleled commitment to precision.
Beyond the Pipes: The project scope extends beyond the physical pipes. TechnipFMC will also provide essential associated services, including packing and storage. This comprehensive approach ensures that Petrobras receives not only top-quality products but also the necessary support to ensure project success.
Benefits of Flexible Pipes for Pre-Salt Fields
Flexible pipes are particularly well-suited for use in the pre-salt fields for a number of reasons. First, they are able to withstand the high pressures and temperatures that are found in these fields. Second, they are flexible and can be easily installed in complex subsea environments. Third, they have a long service life and require minimal maintenance.
The Pre-Salt Challenge
The pre-salt fields, located deep beneath the ocean floor, are known for their impressive productivity but present unique challenges due to their extraordinary depth and complexity. TechnipFMC's engagement in developing these fields is not a recent work, they have a commendable history of collaboration with Petrobras on various significant projects in the region, including the Buzios and Mero fields. This latest contract reaffirms Petrobras' unwavering trust in TechnipFMC's expertise and their ability to deliver top-notch products and services, further cementing their strong foothold in the Brazilian oil and gas market.
Conclusion
The award of this contract to TechnipFMC is a significant development for the Company. It strengthens its position as a leading supplier of flexible pipes to the Brazilian oil and gas industry, and it is a testament to the Company's expertise in this field. The Company is confident that it will deliver on this contract to Petrobras' satisfaction and help the company to achieve its production goals in the pre-salt fields.
Zacks Rank and Key Picks
Currently, FTI and PBR carry a Zacks Rank #3 (Hold).
CVR Energy is valued at $3.42 billion. In the past year, its shares have risen 10.8%.
CVI currently pays a dividend of $2 per share or 5.88% on an annual basis. Its payout ratio currently sits at 30% of earnings.
Harbour Energy is worth approximately $2.37 billion. HBRIY currently pays a dividend of 21 cents per share, or 6.68% on an annual basis.
The company's activities include acquiring, exploring, developing, and producing oil and gas reserves. It has ownership stakes in a number of properties in the United Kingdom, Norway, Indonesia, Vietnam and Mexico.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TechnipFMC (FTI) Wins Petrobras' Flexible Pipe Contract
TechnipFMC (FTI - Free Report) , a global leader in the oil and gas industry, has been awarded a significant contract by Petrobras (PBR - Free Report) , the Brazilian state-owned oil company, to supply flexible pipes for the pre-salt fields offshore Brazil. This contract, valued between $75 million and $250 million, highlights TechnipFMC's capability to design, engineer, and manufacture 14 kilometers of gas injection riser pipes, along with providing associated services such as packing and storage. These flexible pipes are essential for transporting oil and gas from offshore fields to the surface. They are also used for gas injection, which helps to improve oil recovery.
The Pre-Salt Fields: A Strategic Location
Understanding the Pre-Salt Fields: Before we delve deeper into the project, let's take a moment to understand the significance of the pre-salt fields offshore Brazil. These reserves are located beneath a thick layer of salt deep below the ocean's surface. Extracting oil and gas from this challenging environment requires cutting-edge technology and expertise.
Brazil's Energy Potential: Brazil's pre-salt fields are a critical asset in the country's energy portfolio. They are estimated to hold vast reserves of oil and gas, making them a strategic resource for the nation's energy security and economic growth.
The Scope of the Project
Design, Engineering, and Manufacturing: TechnipFMC's role in this project is multifaceted. They are tasked with designing, engineering, and manufacturing a total of 14 kilometers of gas injection riser pipes. This involves intricate planning, cutting-edge technology, and an unparalleled commitment to precision.
Beyond the Pipes: The project scope extends beyond the physical pipes. TechnipFMC will also provide essential associated services, including packing and storage. This comprehensive approach ensures that Petrobras receives not only top-quality products but also the necessary support to ensure project success.
Benefits of Flexible Pipes for Pre-Salt Fields
Flexible pipes are particularly well-suited for use in the pre-salt fields for a number of reasons. First, they are able to withstand the high pressures and temperatures that are found in these fields. Second, they are flexible and can be easily installed in complex subsea environments. Third, they have a long service life and require minimal maintenance.
The Pre-Salt Challenge
The pre-salt fields, located deep beneath the ocean floor, are known for their impressive productivity but present unique challenges due to their extraordinary depth and complexity. TechnipFMC's engagement in developing these fields is not a recent work, they have a commendable history of collaboration with Petrobras on various significant projects in the region, including the Buzios and Mero fields. This latest contract reaffirms Petrobras' unwavering trust in TechnipFMC's expertise and their ability to deliver top-notch products and services, further cementing their strong foothold in the Brazilian oil and gas market.
Conclusion
The award of this contract to TechnipFMC is a significant development for the Company. It strengthens its position as a leading supplier of flexible pipes to the Brazilian oil and gas industry, and it is a testament to the Company's expertise in this field. The Company is confident that it will deliver on this contract to Petrobras' satisfaction and help the company to achieve its production goals in the pre-salt fields.
Zacks Rank and Key Picks
Currently, FTI and PBR carry a Zacks Rank #3 (Hold).
Some better-ranked stocks for investors interested in the energy sector are CVR Energy (CVI - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Harbour Energy (HBRIY - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CVR Energy is valued at $3.42 billion. In the past year, its shares have risen 10.8%.
CVI currently pays a dividend of $2 per share or 5.88% on an annual basis. Its payout ratio currently sits at 30% of earnings.
Harbour Energy is worth approximately $2.37 billion. HBRIY currently pays a dividend of 21 cents per share, or 6.68% on an annual basis.
The company's activities include acquiring, exploring, developing, and producing oil and gas reserves. It has ownership stakes in a number of properties in the United Kingdom, Norway, Indonesia, Vietnam and Mexico.