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TechnipFMC (FTI) Obtains Subsea Contract for Stage 2 EOR Expansion

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TechnipFMC Plc FTI received a significant engineering, procurement, construction and installation (“EPCI”) contract from Ithaca Energy for the Captain enhanced oil recovery (“EOR”) stage two project in the U.K. side of the North Sea. For TechnipFMC, a ‘significant’ contract ranges between $75 Million and $250 Million.

The EOR stage 2, which involves the EOR expansion into the subsea areas of the Captain field, was sanctioned by the board of Ithaca in April 2021. Per the terms of the deal, TechnipFMC will design, manufacture, deliver, and install subsea equipment, which includes a rigid riser caisson, water injection flexible flowline, umbilicals and related equipment.

U.K.-based Ithaca, the operator of the Captain field, is a leading independent energy company, with production, development and exploration operations in the U.K. North Sea. The company has an 85% ownership interest in the Captain field, whereas Dana Petroleum owns the rest.

Discovered in 1977, the Captain field is located 145 kilometers northeast of Aberdeen, Scotland, in the Outer Moray Firth area of the U.K. North Sea, 105.5 meters below the water surface. Notably, the oil and gas field achieved its first production in 1997.

The production facility at the Captain field involves a wellhead protector platform and a bridge-linked platform. The platforms are connected to a floating production, storage and offloading vessel, and two subsea manifolds tied back and connected to them by a network of pipelines.

The field currently produces 27,000 barrels of oil per day and Ithaca plans to recover around 40 MMBoe of additional resources from the project’s 2nd phase. Notably, the project is intended to increase hydrocarbon recovery from the field by injecting polymerized water into the reservoir with the help of subsea wells, subsea infrastructure and new topside facilities.

On its part, TechnipFMC will assist Ithaca on the EOR expansion of the Captain field by utilizing its innovative design and installation technologies and solutions to maximize the recovery of hydrocarbons from the UK Continental Shelf.

Company Profile & Price Performance

TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. It operates through two business segments — Subsea Technologies and Surface Technologies.

Shares of the company have outperformed the industry in the past three months. Its stock has gained 15.3% compared with the industry’s 15.2% growth.

Zacks Rank & Stocks to Consider

TechnipFMC currently carries a Zack Rank #3 (Hold).

Some better-ranked players in the energy space are SilverBow Resources Inc. SBOW and Targa Resources, Inc. TRGP, each currently sporting a Zacks Rank #1 (Strong Buy), and Bonanza Creek Energy, Inc. BCEI, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, the Zacks Consensus Estimate for SilverBow’s 2021 earnings has been raised by 39.3%.

Targa’s earnings for 2021 are expected to rise 43.1% year over year.

Bonanza’s earnings for 2021 are anticipated to grow 11.6% year over year.

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TechnipFMC plc (FTI) : Free Stock Analysis Report

Targa Resources, Inc. (TRGP) : Free Stock Analysis Report

Bonanza Creek Energy, Inc. (BCEI) : Free Stock Analysis Report

SilverBow Resources Inc. (SBOW) : Free Stock Analysis Report

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