Offshore oil and gas-focused engineering and construction firm, McDermott International (MDR) declared that it has entered into a deal with Mexico’s state-controlled oil giant Petróleos Mexicanos or PEMEX.
Per the agreement, McDermott is expected to install deck, piles and offshore jacket for the Ayatsil-A drilling platform located at Bay of Campeche Ayatsil oil field. The contract’s value has been added to the fourth-quarter backlog of McDermott.
On 2008, PEMEX discovered the oil field – which is believed to increase Mexico’s production by roughly 150,000 barrels of oil per day. Since then, this is PEMEX’s largest oil field discovery.
McDermott added that it got the first track project as it has versatile marine assets which include Derrick Barge 50, heavy-lift vessel, and the Intermac 600 transportation and launch barge.
Derrick Barge 50 – which is equipped to lift surface loads of 4,400 tons – will likely install the 8,400-ton offshore jacket − expected to be launched by Intermac 600. Derrick Barge 50 is also anticipated to complete the installation of the deck − weighted 3,400-ton − and other platform apparatus at water depth of 400 feet.
Incorporated in 1959, Houston, TX-based McDermott primarily serves the worldwide offshore oil and gas field developments, including the front-end design and detailed engineering, fabrication and installation of offshore drilling and production facilities, as well as installation of marine pipelines and subsea production systems.
Currently, McDermott carries a Zacks Rank #3 (Hold), implying that it will perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, one can look at better-ranked players in the energy sector like Spectra Energy Partners LP (SEP), Cheniere Energy Partners LP (CQP) and Seadrill Partners LLC (SDLP). All these stocks sport a Zacks Rank #1 (Strong Buy).
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