ConocoPhillips COP has awarded a contract to TechnipFMC plc FTI. The contract is related to the integrated engineering, procurement, construction and installation (EPCI) for the Tor II development in the North Sea.
Per FTI, the contract is valued between $75 million and $250 million.
This contract is the first EPCI award from ConocoPhillips to TechnipFMC. It includes the delivery and installation of a subsea production system as well as the installation of umbilical, rigid flowlines and related subsea equipment.
Located in the Norwegian sector of the North Sea, the TOR II development lies in a water depth of 80 meters (262 feet).
The Tor field is located 13 kilometers northeast of the Ekofisk Complex at a water depth of 70 meters. Discovered in 1970, the field commenced production in 1978, which was shut in Jan 1, 2016.
Tor 2/4 E —a combined accommodation and process platform — was installed in 1975. The living quarters module was replaced in 1982 and has 92 beds. According to the formal disposal resolution, the facility will be removed by the end of 2022. Post removal, the field will undergo redevelopment.
A major portion of the field lies in block 2/4 in production license 018 and the rest extends into block 2/5 in PL 006. The reservoir is located at a depth of about 3200 meters. ConocoPhillips, as the operator of the license, has an ownership interest of 30.66%.
Recently, ConocoPhillips entered into an agreement to sell two ConocoPhillips United Kingdom subsidiaries to Chrysaor for $2.675 billion, in addition to interest and customary adjustments.
Zacks Rank & Other Key Picks
Currently, ConocoPhillips carries a Zacks Rank #2 (Buy).
Some other top-ranked players in the energy space are Cabot Oil & Gas Corporation COG and CrossAmerica Partners L.P. CAPL, each sporting a Zacks Rank #1 (Strong Buy), SEACOR Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Houston, Texas, Cabot Oil & Gas is an independent oil and gas exploration company with producing properties mainly in the continental U.S. The top line and bottom line for 2019 is expected to inch up 8.2% and 64.7% year over year, respectively.
CrossAmerica Partners is involved in the wholesale distribution of motor fuels, comprising gasoline and diesel fuel. The partnership delivered an average positive earnings surprise of 452.2% in the last four quarters.
SEACOR Holdings is a diversified holding company, mainly focused on domestic and international transportation, logistics as well as risk management consultancy. The bottom line for 2019 is expected to inch up 1.7% year over year. The company delivered an average positive earnings surprise of 20.5% in the trailing four quarters.
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