Yahoo Finance Shell (SHEL) Tasks MODEC for FEED Contract Offshore Brazil
Shell Brasil, a unit of oil and gas giant Shell SHEL, has awarded a Front-End Engineering and Design (FEED) contract to Tokyo-based floating platform expert MODEC Inc. for a new Floating Production, Storage and Offloading (FPSO) system to work on the Gato do Mato ultra-deepwater development, offshore Brazil.
The Gato do Mato FPSO will be stationed at a distance of approximately 250 kilometers offshore Brazil. The FPSO will be moored at a depth of 2000 meters underwater.
MODEC has been tasked with designing the hull and all associated topside facilities for the FPSO. Furthermore, it is projected that the FPSO will be secured using a SOFEC spread mooring system. The stabilized crude oil will be stored in the FPSO tanks before being offloaded to shuttle tankers and sent to markets.
MODEC has a successful track record in Brazil, having delivered 16 FPSOs previously and two more units currently under construction. The Gato do Mato FPSO would be the second unit that will be directly delivered to Shell by the Japanese floating expert.
Initially, Shell had awarded the deal for the Gato do Mato FPSO to BW Offshore in May 2022. BW Offshore and Saipem were jointly responsible for the Engineering, Procurement, Construction, and Installation (EPCI) work for the FPSO vessel. However, the deal was terminated in November 2022, after delaying the final investment decision (FID) for the same by up to two years.
A year later, Shell revisited its plans for the Gato do Mato project and announced that it would be making the FID in the first quarter of 2025.
MODEC described the deal to conduct the FEED study as a major highlight for itself, as it indicates a strong relationship between the two companies, spanning more than two decades.
Zacks Rank and Other Key Picks
Currently, SHEL holds a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the energy sector are Archrock Inc. AROC, Sunoco LP SUN and Helmerich & Payne HP. Archrock and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, while Helmerich & Payne carries a Zacks Rank #2. You can see the complete list of today’s Zacks Rank #1 stocks here.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than the composite stocks in the industry, providing unitholders with consistent returns.
Helmerich & Payne is primarily involved in the contract drilling of oil and natural gas, with operations in all major U.S. onshore basins as well as in South America, Australia and the Middle East. In the past months, the company has secured eight new rig contracts with Saudi Aramco, thereby expanding its presence in the Middle East. With plans to capitalize on unconventional drilling growth opportunities, HP’s outlook seems positive.
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