Energy-focused engineering and construction firm McDermott International Inc. (MDR) announced that one of its Indonesia-based affiliates has won a contract from PETRONAS Carigali Sdn. Bhd., for the development of offshore platforms and infield flowline for the Kepodang Field. McDermott will include the contract’s value in its fourth-quarter 2012 backlog.
Kepodang Field is situated roughly 180 kilometers northeast of Semarang, Central Java and in water depths up to 70 meters.
Per the deal, McDermott will provide procurement, construction, installation and commissioning services to a central processing platform of 5,802-tonne, a wellhead platform of 1,298-tonne, 10-inch diameter infield flowline, which is 2.7-kilometer-long and will install remote control facilities at the onshore receiving facilities.
The contract is expected to be over by the final quarter of 2014, while the value of the project has not yet been disclosed.
In January, the company inked a deal for Mexico’s state oil monopoly Petroleos Mexicanos, or Pemex’s PB-Litoral-A production platform. This platform will serve the Litoral Tabasco Tsimin-Xux fields.
Houston, Texas-based McDermott primarily serves the worldwide offshore oil and gas field development activities, including front-end design and detailed engineering, fabrication and installation of offshore drilling and production facilities, as well as installation of marine pipelines and subsea production systems.
Given its geographic footprint in high-growth regions, technology leadership and efficient execution skills, the company is poised to benefit from strong industry fundamentals for offshore construction activities.
McDermott currently carries a Zacks Rank #2 (Buy), implying that it is expected to outperform the broader U.S. equity market over the next one to three months.
Meanwhile there are certain other firms in the energy sector that are expected to significantly outperform the equity markets in the next one to three months are Cabot Oil & Gas Corporation (COG), Total SA (TOT) and Breitburn Energy Partners L.P. (BBEP). All of these stocks carry a Zacks Rank #1 (Strong Buy).
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