Helix Energy Solutions Group Inc. HLX reached an agreement for response resources with HWCG LLC on oil and fuel spill preparedness and response.
Notably, HWCG is a consortium of offshore energy companies in the Gulf of Mexico, which focuses on developing the safest and fastest response system through extensive and strong industry collaboration, and mutual assistance.
Per the terms of the deal, the existing HWCG operators have been granted the opportunity to recognize the Helix Fast Response System as a response resource in permit applications to the federal and state agencies of the United States. Moreover, the members will use the Helix Fast Response System to tackle an oil well control incident in the U.S. Gulf of Mexico.
The Helix Fast Response System was created in 2011 in response to Helix Energy’s involvement as a responder effort to contain and control the blowout of the Macondo well. Notably, the system includes the Helix Producer I floating production unit, Q4000 or Q5000 vessels, subsea intervention systems, crude transfer systems, and other well-control equipment.
Helix Energy will receive an annual retention fee from HWCG, while the consortium of HWCG will obtain a credit against the fee for every day a member utilizes the Q4000 or Q5000 vessels. The deal will be in effect from Apr 1, 2021, with an initial term of two years.
The Helix Fast Response System is expected to help address the environmental hazards associated with offshore drilling and production operations. Importantly, the agreement reflects the parties’ aim for continued safe operations of offshore oil and gas production.
Helix Energy is a global offshore energy company, which provides offshore energy services. The company focuses on the entire oil and gas value chain, with a special focus on well intervention and robotics operations.
Zacks Rank & Stocks to Consider
Helix Energy currently carries a Zack Rank #3 (Hold).
Some better-ranked players in the energy space are Canadian Natural Resources Limited CNQ and Eni SPA E, each presently sporting a Zacks Rank #1 (Strong Buy), and China Petroleum & Chemical Corporation SNP, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Canadian Natural Resources’ earnings for 2021 are expected to surge 77.8% year over year.
Eni’s earnings for 2021 are expected to increase 15.2% year over year.
China Petroleum’s earnings for 2021 are expected to rise 10% year over year.
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