Oilfield services company, Oceaneering International Inc. (OII) announced that it has won a contract from one of the affiliates of offshore drilling giant Transocean Ltd. (RIG), for the supply of subsea blowout preventer (BOP) control systems. Oceaneering International will add the contracts’ value of more than $40 million to its Subsea Products backlog.
Per the deal, Oceaneering International will provide three subsea BOP control systems.
The systems that are ordered by Transocean unit will be used on its current semi-submersible rigs, in order to comply with the newly issued standards of American Petroleum Institute.
The subsea BOP control systems will be manufactured by the company at its Houston-based Oceaneering Intervention Engineering facility. The systems are expected to be delivered between the fourth quarter of 2013 and the first quarter of 2014.
Oceaneering International management believes that the company’s BOP control systems which will be engineered will not require much maintenance and hence can maximize rig uptime.
Houston, Texas-based Oceaneering International primarily serves the global offshore oilfield industry by providing engineered products and services. Leading under water services contractor Oceaneering International operates the world’s greatest fleets of remotely operated vehicles.
The company also provides inspection services, subsea products and services. Further, the company serves the defense and aerospace sectors with its applied technological skill.
Oceaneering International currently carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.
In the energy sector, the firms that are expected to outperform the equity market significantly are Calumet Specialty Products Partners LP (CLMT) and Cabot Oil & Gas Corporation (COG). Both these stocks currently retain a Zacks Rank #1 (Strong Buy).
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