Yahoo Finance SLB Secures Contract for All-Electric Subsea Project in Norway
SLB SLB has been awarded a contract by Equinor ASA EQNR to deliver the front-end engineering design (“FEED”) for an innovative all-electric subsea project in Norwegian waters.
The project marks a notable advancement in subsea technology, focusing on electrification to enhance efficiency and production capabilities. It will be carried out by SLB OneSubsea, a joint venture supported by SLB, Aker Solutions and Subsea7, with headquarters in Oslo and Houston.
Per the agreement, SLB will oversee the FEED for a 12-well, all-electric subsea production systems project located in the Fram Sor field offshore Norway. Upon reaching a final investment decision, the future engineering, procurement and construction phases will be directly awarded to SLB OneSubsea.
The Fram Sor project will utilize SLB OneSubsea’s standard subsea tree design, enhanced with a fully electrified power, control and actuation system. SLB asserts that replacing high-pressure hydraulic systems with electric ones will enable operators to explore further and deeper, enhance production, and make even marginal fields more viable.
Discovered in 1990, the Fram field is situated in the northern part of the North Sea, 20 kilometers north of the Troll field, at a water depth of 350 meters. The field comprises two main structures, Fram Vest and Fram Ost, each developed with two subsea templates tied back to the Troll C platform.
The project marks the first implementation of a joint industry initiative that began in 2018, involving close collaboration among major industry players. The aim was to accelerate the development of breakthrough electrification technology through a standardized industry solution.
Electrification is crucial for the future of subsea operations in the energy transition. The technology introduced by SLB OneSubsea has essentially created the Internet of Things for subsea trees, offering operators enhanced control through live performance and condition monitoring.
Last month, OneSubsea won another assignment with Equinor for a project that aims to bolster gas infrastructure at a giant oil and natural gas field in the northern part of the North Sea.
Zacks Rank & Key Picks
Currently, SLB carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC and GeoPark Ltd. GPRK, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States, focusing on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
The Zacks Consensus Estimate for AROC’s 2024 and 2025 EPS is pegged at $1.07 and $1.23, respectively. The company has a Zacks Style Score of A for Growth. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.
GeoPark, based in Hamilton, Bermuda, is an explorer, operator and consolidator in the oil and gas sector. The company primarily operates in Chile, Colombia, Brazil and Argentina. It has a Zacks Style Score of A for Value, and B for Growth and Momentum.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $3.23 and $3.98, respectively. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
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