Oilfield services company, Oceaneering International, Inc. ( OII ) announced that it has signed an agreement with a subsidiary of the oil drilling equipment maker FMC Technologies Inc. ( FTI ) to purvey production control umbilicals.
Per the agreement, Oceaneering will provide super-duplex, steel tube umbilicals for FMC Technologies' Jangkrik project, located off the coast of Indonesia, in the Muara Bakau production sharing contract area. The umbilicals will have a total length of roughly 50 kilometers.
Oceaneering will manufacture the product at its Oceaneering Umbilical Solutions facility located in Rosyth, Scotland. Product manufacturing is slated to begin in the final quarter of this year, with projected delivery in the second quarter of 2016.
The company added that the umbilicals would be used to deliver hydraulic and electrical power as well as chemical injection to the subsea wells.
Houston, TX-based Oceaneering primarily serves the global offshore oilfield industry by providing engineered products and services. The company also offers inspection work, subsea products and services. Moreover, it provides supplies to the defense, entertainment and aerospace industries, and uses its advanced applied technology expertise for the same.
The company has a favorable working environment, as reflected in the strong first-quarter 2014 results. In fact, it has delivered positive earnings surprises in all of the last four quarters with an average beat of 4.46%.
Last week, Oceaneering took over the remote asset management software services provider, AIRSIS Inc. The move is likely to boost the company's current asset tracking service offered on offshore drilling rigs and vessels employed in subsea activities.
Currently, Oceaneering carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. market in the next one to three months.
Meanwhile, one can consider better-ranked players from the oilfield services industry such as C&J Energy Services, Inc. ( CJES ) and Emerge Energy Services LP ( EMES ), both of which sport a Zacks Rank #1 (Strong Buy).