Yahoo Finance National Oilwell Inks Deal to Sell 20K BOP to Transocean
National Oilwell Varco NOV recently inked an agreement to sell 20,000-psi blowout preventor stacks (BOP) to Transocean Ltd. RIG, thereby becoming the first oilfield equipment provider to design and sell such a package. The 20K BOP, engineered to handle the toughest drilling operations, is a result of five years of hard work by the company’s Rig Technologies unit. The financial aspects of the agreement are kept under wraps.
National Oilwell considers the introduction of 20K BOP a historic moment for the offshore oil and gas industry, marking a new era in the exploration and development of high-pressure formations.The 20K BOP stack is designed to help in the drilling of most challenging and high-pressure reservoirs, and can be deployed for ultra-deepwater exploration. The initial utilization of the 20K BOP stack is likely to occur in 2021 in the Gulf of Mexico.
This equipment and technology package is aimed at optimizing the operating time and minimizing unplanned stack pulls, underscoring the company’s cutting-edge tech prowess.As we know,National Oilwell is one of the biggest manufacturers of drilling equipment in the world, having an impressive business model. It is a global leader in solids control technology and waste management.
The growing search for oil into deepwater frontiers has increased the demand for rigs that are capable of tackling the immense challenges of drilling in a mile or more of water. National Oilwell is well positioned to supply such tools, thereby aiding deepwater drilling. Of late, the company embarked on a series of acquisitions, which have expanded directional drilling and diversified the range of completion tools offering. The acquisition of GustoMSC has strengthened National Oilwell's hold in the offshore industry. The company's joint venture with Saudi Aramco supports the firm’s drilling technology franchise.
While National Oilwell's impressive portfolio of products and services is much appreciated, a tough operating environment and weakness in commodity prices are likely to hamper the company's performance in the coming quarters. The sharp decline in oil prices in the final months of 2018 led to a contraction in orders. Resultantly, the company posted wider-than-expected loss in the last reported quarter. In fact, the Zacks Rank #3 (Hold) firm expects the quantum of new capital equipment order to remain weak.
Meanwhile, firms interested in the same industry can consider Oil States International, Inc. OIS and Superior Drilling Products, Inc. SDPI, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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National Oilwell Varco, Inc. (NOV) : Free Stock Analysis Report
Superior Drilling Products, Inc. (SDPI) : Free Stock Analysis Report
Oil States International, Inc. (OIS) : Free Stock Analysis Report
Transocean Ltd. (RIG) : Free Stock Analysis Report
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