OneSubsea, operated by oil drilling equipment maker Cameron International Corporation (CAM), Schlumberger Limited (SLB) and Helix Energy Solutions Group Inc. (HLX) have signed a letter of intent. Per the agreement, the trio will develop technology to minimize cost during well intervention operations. Cameron has a 40% interest in OneSubsea while oilfield services giant Schlumberger holds the remaining stake. Helix Energy is an offshore energy firm involved in oilfield specialty services.
The three companies are planning to develop a unique technology for easier optimization of their well intervention operations especially in deep and ultra-deepwater basins and in areas where well pressure is very high. The firms will also jointly improve support services – performed particularly during well drilling. These services include well commissioning, artificial lift support and abandonment.
Cameron believes that the unique technology and services will decrease the operational risk as well as well intervention cost to a great extent and thereby will help the oil field drillers to maximize their drilling services.
Schlumberger added that the specialized technology and services will help the drillers to significantly increase production and recovery rates in all environments.
Houston, TX-based Cameron currently carries a Zacks Rank #1 (Strong Buy), implying that it is expected to significantly outperform the broader U.S. equity market over the next one to three months. Schlumberger carries a Zacks Rank #3 (Hold), which implies that the stock is expected to perform in line with the broader U.S. equity market over the next one to three months.
One can consider another player in the energy sector like Patterson-UTI Energy Inc. (PTEN), which sports Zacks Rank #1 (Strong Buy).