TechnipFMC (FTI) Wins Large EPCI Contract in Buzios Field

TechnipFMC FTI, a French-American, U.K.-domiciled oilfield services major, announced the acquisition of a sizeable subsea engineering, procurement, construction and installation contract from the state-owned Brazilian oil biggie, Petrobras PBR, for the development of the Buzios field, where a greenfield project is located within the Cessão Onerosa region in the pre-salt area of Brazil. The offshore field covers an area of 160 square miles and is situated some 125 miles off the coast of Rio de Janeiro.

The contract, which is considered to be in the vicinity of $500 million to $1 billion, covers flexible and rigid pipes, umbilicals, pipeline-end terminals, rigid jumpers, umbilical termination assemblies, a mooring system for the sixth phase of the giant field in the Santos basin. According to TechnipFMC, flexible pipes, umbilicals and subsea structures as well as a few rigid pipes are to be produced in Brazil to cut down the carbon footprint related to the process. The project also intends to use the already existing supply chain of the company in Brazil to its advantage.

Founded in 2010, Petrobras is the sole owner of the Buzios field. Known as the largest deep-water oil field globally, it is believed that Buzios will have a daily production of more than 2 million barrels of oil equivalent per day by the end of this decade, making it the largest oil-producing asset of Petrobras. PBR started churning out oil from the development in 2018.

TechnipFMC’s Buzios contract with Petrobras enhances their long-term partnership. FTI is already involved in a smaller capacity for the Buzios 6-9 fields through the supply of subsea trees and topside systems to Petrobras.

“We are excited to announce this award, which demonstrates the continuing strength of the subsea market in Brazil and our collaborative relationship with Petrobras. We used our deep understanding of the client’s needs to arrive at technological solutions developed specifically for the Buzios 6 field.”, stated Jonathan Landes, President, Subsea at TechnipFMC.

TechnipFMC plc is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The company reached its current form following the January 2017 merger between Technip and FMC Technologies.

TechnipFMC currently has Zacks Rank #3 (Hold). Investors might want to look at some better-ranked stocks from the energy sector, including ExxonMobil XOM and Ranger Oil ROCC, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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The Zacks Consensus Estimate for ExxonMobil’s 2022 earnings has been revised about 6.7% upward over the past 60 days from $5.92 to $6.32 per share.

Ranger Oil’s stock has increased 204.6% in a year. The Zacks Consensus Estimate for Ranger Oil’s 2022 earnings is projected at $9.02 per share, which is an increase of a massive 152.7% from the projected year-ago earnings of $3.57.
ROCC beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being around 25%.

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