Energy-focused engineering and construction firm
McDermott International Inc.
) announced that one of its Indonesia-based affiliates has won a
contract from PETRONAS Carigali Sdn. Bhd., for the development of
offshore platforms and infield flowline for the Kepodang
Field. McDermott will include the contract's value in its
fourth-quarter 2012 backlog.
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Kepodang Field is situated roughly 180 kilometers northeast of
Semarang, Central Java and in water depths up to 70 meters.
Per the deal, McDermott will provide procurement, construction,
installation and commissioning services to a central processing
platform of 5,802-tonne, a wellhead platform of 1,298-tonne,
10-inch diameter infield flowline, which is 2.7-kilometer-long
and will install remote control facilities at the onshore
The contract is expected to be over by the final quarter of 2014,
while the value of the project has not yet been disclosed.
In January, the company inked a deal for Mexico's state oil
monopoly Petroleos Mexicanos, or Pemex's PB-Litoral-A production
platform. This platform will serve the Litoral Tabasco Tsimin-Xux
Houston, Texas-based McDermott primarily serves the worldwide
offshore oil and gas field development activities, including
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
Given its geographic footprint in high-growth regions, technology
leadership and efficient execution skills, the company is poised
to benefit from strong industry fundamentals for offshore
McDermott currently carries a Zacks Rank #2 (Buy), implying that
it is expected to outperform the broader U.S. equity market over
the next one to three months.
Meanwhile there are certain other firms in the energy sector that
are expected to significantly outperform the equity markets in
the next one to three months are
Cabot Oil & Gas Corporation
Breitburn Energy Partners L.P.
). All of these stocks carry a Zacks Rank #1 (Strong Buy).