Yahoo Finance TechnipFMC (FTI) Secures Contract in Guyana's Stabroek Block
TechnipFMC plc FTI has clinched a substantial contract in Guyana’s Stabroek Block from Exxon Mobil Corporation XOM affiliate ExxonMobil Guyana Limited in a significant development for the offshore oil and gas industry. This contract, valued between $500 million and $1 billion, marks a milestone for both parties involved. The project, known as the Whiptail project, highlights the growing significance of the Guyana basin in global energy production.
Contract Details
TechnipFMC, a leading provider of integrated project management and subsea solutions, will play a key role in the Whiptail project. The scope of the contract includes the supply of subsea production systems, including 48 subsea trees and associated tooling, as well as 12 manifolds and associated controls and tie-in equipment. This comprehensive package highlights TechnipFMC's expertise in delivering advanced subsea solutions tailored to the specific needs of offshore projects.
Commentary From TechnipFMC
TechnipFMC's president, Jonathan Landes, expressed confidence in the project's success, highlighting the company's commitment to delivering high-quality solutions. He mentioned that XOM will use its Subsea 2.0 systems, providing schedule certainty, and highlighting TechnipFMC's innovative technologies and engineering capabilities for efficient project execution.
Strategic Partnership
The contract with XOM further solidifies TechnipFMC's longstanding partnership with the energy giant. With a track record of successful collaborations dating back to 2017, TechnipFMC has been a key player in supporting XOM's ambitious exploration and production activities in the region. The Whiptail project represents the latest chapter in this partnership, signaling continued growth and cooperation between the two entities.
Local Impact
Beyond its technical achievements, the Whiptail project is set to have a positive impact on the local economy in Guyana. TechnipFMC currently employs nearly 140 Guyanese workers, with plans to expand its workforce to support the project's execution. This commitment to local hiring and training underscores TechnipFMC's dedication to fostering sustainable development and capacity-building in the communities where it operates.
Outlook
As the energy landscape continues to grow, projects like Whiptail are emblematic of the industry's ongoing transformation. By leveraging cutting-edge technologies and fostering strategic partnerships, companies like FTI and XOM are driving innovation and unlocking new opportunities in previously untapped regions. The successful execution of the Whiptail project will not only contribute to the global energy supply but also serve as a testament to the ingenuity and collaboration of the teams involved.
Conclusion
TechnipFMC's award of the Whiptail project contract represents a significant achievement in the offshore oil and gas sector. With its commitment to excellence, innovation and sustainability, TechnipFMC is poised to deliver value to its clients and stakeholders while supporting economic growth and development in Guyana.
Zacks Rank and Key Picks
Currently, FTI and XOM carry a Zacks Rank #3 (Hold) each.
Investors interested in the energy sector might look at some better-ranked stocks like Murphy USA Inc. MUSA and Archrock Inc. AROC, each sporting a Zacks #1 Rank (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA is valued at approximately $8.58 billion. In the past year, the company’s shares have surged 52.8%.
MUSA markets retail motor fuel products and convenience merchandise, operating retail stores under the brands Murphy USA, Murphy Express and QuickChek.
Archrock is valued at $3.15 billion. The company currently pays a dividend of 66 cents per share, or 3.28%, on an annual basis.
AROC, together with its subsidiaries, works as an energy infrastructure company in the United States. The company operates under two segments — Contract Operations and Aftermarket Services.
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