Advertisement
New Zealand markets closed
  • NZX 50

    11,783.39
    -26.09 (-0.22%)
     
  • NZD/USD

    0.6123
    +0.0021 (+0.35%)
     
  • NZD/EUR

    0.5638
    +0.0000 (+0.01%)
     
  • ALL ORDS

    7,999.20
    -83.90 (-1.04%)
     
  • ASX 200

    7,727.60
    -84.20 (-1.08%)
     
  • OIL

    77.80
    +0.93 (+1.21%)
     
  • GOLD

    2,335.20
    -2.00 (-0.09%)
     
  • NASDAQ

    18,808.35
    +184.96 (+0.99%)
     
  • FTSE

    8,317.59
    -21.64 (-0.26%)
     
  • Dow Jones

    39,069.59
    +4.33 (+0.01%)
     
  • DAX

    18,693.37
    +2.05 (+0.01%)
     
  • Hang Seng

    18,608.94
    -259.77 (-1.38%)
     
  • NIKKEI 225

    38,646.11
    -457.11 (-1.17%)
     
  • NZD/JPY

    96.0860
    +0.3840 (+0.40%)
     

TechnipFMC (FTI) Wins Contract for RLWI Services From Equinor

TechnipFMC FTI, a leading global provider of subsea solutions, secured a contract from Equinor EQNR to deliver Riserless Light Well Intervention (RLWI) services on the Norwegian Continental Shelf. This two-year contract (2024-2025) comes with an option for extension over the subsequent three years.

Contract Scope and Objectives

Per the agreement, TechnipFMC will deliver production enhancement, data and pre-plug-and-abandonment services to Equinor using the RLWI method. The primary goal is to optimize the performance of Equinor's assets on the Norwegian Continental Shelf, thereby improving production rates and extending the lifespan of the existing wells.

Significance of the Agreement

The abovementioned contract, with a value of $75-$250 million, is expected to contribute to TechnipFMC's inbound orders in the second quarter of 2023. This will further strengthen  the company’s market position and reinforce its expertise in providing efficient and cost-effective RLWI services.

Advantages of RLWI

The advanced intervention technique offers numerous advantages in maintaining and enhancing subsea wells. It eliminates the need for a traditional drilling riser, reducing the operational complexity and cost associated with good interventions.

ADVERTISEMENT

RLWI also enables efficient access to subsea wells, allowing for quick and effective maintenance, diagnostics and remediation activities.

Equinor can optimize the performance and recovery of its subsea assets using RLWI. This will maximize  production levels and ensure the integrity of its wells.

The aforesaid collaboration between Equinor and TechnipFMC will contribute to a safer, more efficient and sustainable future for the offshore energy industry.

Unparalleled Expertise

Equinor’s selection of TechnipFMC as the preferred provider of RLWI services is a testament to the latter's unrivaled expertise in subsea engineering and operations.

FTI has consistently delivered innovative solutions to the industry's most complex challenges. This contract solidifies the company’s position as a trusted provider of cutting-edge technologies and services to the global energy sector.

Conclusion

TechnipFMC's recent collaboration with Equinor for the provision of RLWI services marks a significant achievement for both companies. With their extensive experience and continuous pursuit of technological advancements, FTI and Equinor are poised to drive further innovation in the energy industry and set new benchmarks for operational excellence on the Norwegian Continental Shelf.

FTI is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. It provides subsea production, flexible pipelines, subsea umbilicals, risers, flowlines, vessels and subsea studio to optimize the development, execution, and operation of current and future subsea fields.

Equinor, one of the premier integrated energy companies in the world, has operations spread across 30 countries. It engages in the exploration, production, transportation, refining, and marketing of petroleum and other forms of energy in Norway and abroad.

Zacks Rank and Key Picks

Currently, both TechnipFMC and Equinor carry a Zacks Rank #3 (Hold).

A couple of better-ranked stocks for investors interested in the energy sector are Evolution Petroleum EPM, sporting a Zacks Rank #1 (Strong Buy), and Archrock AROC, holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Evolution Petroleum: EPM is worth approximately $219.16 million. EPM currently pays a dividend of 48 cents per share, or 7.38%, on an annual basis.

The company currently has a forward P/E ratio of 6.07. In comparison, its industry has an average forward P/E of 7.50, which means EPM is trading at a discount to the group.

Archrock: AROC is valued at around $1.55 billion. It delivered an average earnings surprise of 26.27% for the last four quarters and its current dividend yield is 6.06%.

Archrock is a provider of natural gas contract compression services and aftermarket services of compression equipment.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

TechnipFMC plc (FTI) : Free Stock Analysis Report

Evolution Petroleum Corporation, Inc. (EPM) : Free Stock Analysis Report

Archrock, Inc. (AROC) : Free Stock Analysis Report

Equinor ASA (EQNR) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research