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BP Taps Houston Firms for Gulf of Mexico Production Unit Design
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BP plc (BP - Free Report) has awarded contracts to Houston-based Audubon Engineering Company and Exmar Offshore for the engineering and design of the topside and hull, respectively, of a floating production unit (FPU) for its newly sanctioned Kaskida development in the U.S. Gulf of Mexico.
This marks BP’s sixth-operated deepwater project in the region, situated in a prolific high-margin basin.
Hull and Topside Design Partnerships
Exmar Offshore will design and engineer the FPU hull, marking the fifth time that its patented OPTI hull design will be used. Carl-Antoine Saverys, CEO of Exmar, expressed the company’s enthusiasm for being selected, emphasizing the significance of this project for Exmar in the Gulf of Mexico.
Audubon, chosen for the FPU topside engineering work, will leverage its extensive experience from previous offshore projects, including Delta House and King’s Quay. Terry Mienie, executive vice president of Offshore at Audubon, highlighted the firm’s commitment to designing the topside for the Kaskida project with a focus on safety and efficiency.
Both companies have already begun their engineering work for the Kaskida FPU. Singapore’s Seatrium has also been involved in the early engineering efforts for the project.
Significance of the Kaskida Project
The Kaskida FPU is expected to produce 80,000 barrels of crude oil per day from six wells in its first phase, with production set to begin in 2029. The project is estimated to contain 275 million barrels of oil equivalent in recoverable resources. Notably, Kaskida will be BP’s first Gulf of Mexico project to utilize high-pressure 20,000 psi technology, setting a precedent for future deepwater developments.
This project is recognized as the industry’s first high-pressure deepwater development. It is poised to be one of the largest of its kind in U.S. energy history, with reservoir depths reaching 34,000 feet below sea level.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.57. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
MPLX derives stable fee-based revenues, driven by long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership’s robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.
The Zacks Consensus Estimate for MPLX’s 2024 EPS is pegged at $4.21. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Northern Oil and Gas’ core operations are focused on three leading basins of the United States — the Williston, Permian and the Appalachian. The upstream operator employs a unique nonoperating business model, which helps it to keep costs down and increase cash flow.
The Zacks Consensus Estimate for NOG’s 2024 EPS is pegged at $5.21. The company has witnessed upward earnings estimate revisions for 2024 in the past seven days.
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BP Taps Houston Firms for Gulf of Mexico Production Unit Design
BP plc (BP - Free Report) has awarded contracts to Houston-based Audubon Engineering Company and Exmar Offshore for the engineering and design of the topside and hull, respectively, of a floating production unit (FPU) for its newly sanctioned Kaskida development in the U.S. Gulf of Mexico.
This marks BP’s sixth-operated deepwater project in the region, situated in a prolific high-margin basin.
Hull and Topside Design Partnerships
Exmar Offshore will design and engineer the FPU hull, marking the fifth time that its patented OPTI hull design will be used. Carl-Antoine Saverys, CEO of Exmar, expressed the company’s enthusiasm for being selected, emphasizing the significance of this project for Exmar in the Gulf of Mexico.
Audubon, chosen for the FPU topside engineering work, will leverage its extensive experience from previous offshore projects, including Delta House and King’s Quay. Terry Mienie, executive vice president of Offshore at Audubon, highlighted the firm’s commitment to designing the topside for the Kaskida project with a focus on safety and efficiency.
Both companies have already begun their engineering work for the Kaskida FPU. Singapore’s Seatrium has also been involved in the early engineering efforts for the project.
Significance of the Kaskida Project
The Kaskida FPU is expected to produce 80,000 barrels of crude oil per day from six wells in its first phase, with production set to begin in 2029. The project is estimated to contain 275 million barrels of oil equivalent in recoverable resources. Notably, Kaskida will be BP’s first Gulf of Mexico project to utilize high-pressure 20,000 psi technology, setting a precedent for future deepwater developments.
This project is recognized as the industry’s first high-pressure deepwater development. It is poised to be one of the largest of its kind in U.S. energy history, with reservoir depths reaching 34,000 feet below sea level.
Zacks Rank & Key Picks
BP currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company (SM - Free Report) , MPLX LP (MPLX - Free Report) and Northern Oil and Gas, Inc. (NOG - Free Report) . While SM Energy currently sports a Zacks Rank #1 (Strong Buy), MPLX and Northern Oil and Gas carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.57. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
MPLX derives stable fee-based revenues, driven by long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership’s robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.
The Zacks Consensus Estimate for MPLX’s 2024 EPS is pegged at $4.21. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Northern Oil and Gas’ core operations are focused on three leading basins of the United States — the Williston, Permian and the Appalachian. The upstream operator employs a unique nonoperating business model, which helps it to keep costs down and increase cash flow.
The Zacks Consensus Estimate for NOG’s 2024 EPS is pegged at $5.21. The company has witnessed upward earnings estimate revisions for 2024 in the past seven days.