Yahoo Finance Vallourec (VLOWY) to Supply Pipe for Whiptail Deepwater Project
Vallourec SA VLOWY, the French tubular solutions provider, has inked a contract with ExxonMobil Guyana, a subsidiary of oil and gas giant Exxon Mobil Corporation XOM, to deliver pipe for the latter’s Whiptail project situated offshore Guyana. The newest contract represents the fourth significant order that Vallourec has received under a long-term agreement (LTA) with ExxonMobil Guyana. The LTA was signed in 2021.
Per the terms of the contract, Vallourec will be responsible for supplying 180 kilometers of pipe, including grade X80. This is the second order that it has received for grade X80, the previous lot being booked for the Uaru order. According to the company, the X80 grade is a differentiated solution that was developed and qualified by Vallourec’s R&D teams. The deliverables for the deal will be served from Vallourec’s Jeceaba mill, located in Minas Gerais.
The contract for the Whiptail project was preceded by the Yellowtail, Gas-to-Energy and Uaru orders signed under the same LTA. Since December 2021, Vallourec has secured orders (including the Whiptail order) for approximately 700 kilometers of line pipe for installation offshore Guyana.
Vallourec mentioned that the contract for the Whiptail project is a milestone that complements its long-term association with ExxonMobil.
Zacks Rank and Key Picks
Currently, both VLOWY and XOM have a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are SM Energy SM and Hess Corporation HES, both sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior- year reported figure, signaling a bright production outlook.
Hess is a leading upstream energy company with its operations focused on the prolific resources offshore Guyana. The company has made significant oil discoveries in the Stabroek Block, off the coast of Guyana. These discoveries have totaled more than 11 billion barrels of oil equivalent in gross recoverable resources, adding to Hess’ production potential.
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