TechnipFMC plc FTI has awarded a contract to Tracerco, an industrial technology company, for delivering its Profiler measurement and control solutions technology to be installed for Petróleo Brasileiro S.A. – Petrobras’ PBR Mero 3 High-Pressure Separator (HISEP) pilot project in Brazil.
In January 2024, TechnipFMC, currently carrying a Zacks Rank #3 (Hold), originally won an integrated engineering, procurement, construction and installation (iEPCI) contract worth about $1 billion with Petrobras to deliver the HISEP process that will separate carbon dioxide-rich dense gases and then inject them into the reservoir. The contract was one of its kind as it demonstrated FTI’s leadership in providing subsea processing, technology innovation and integrated solutions to its business partners. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
An Overview of PBR’s Mero3 Project
PBR’s HISEP project is part of Mero field development, located 180 kilometers off Rio de Janeiro in the Brazilian pre-salt oil region. The field contains an optimum mix of oil and CO2 gas, requiring an HISEP instrument to be installed that can separate the oil from CO2 and reinject the gas into the reservoir for sustainability.
The oil-rich field is operated by Petrobras, which holds a 38.6% interest. Other partners, such as Shell Brasil and TotalEnergies, hold 19.3% interest each; CNPC and CNOOC hold 9.65% each; and Pré-Sal Petróleo holds 3.5% interest.
An Overview of the Tracero’s Profiler Technology
The HISEP project focuses on separating oil and CO2-rich gas, and reinjecting the gas into the reservoir to reduce the intensity of greenhouse gas emissions.
Tracero has reengineered its Profiler technology to be used in the HISEP project to operate efficiently in the subsea environment. The instrument is highly efficient in providing real-time and high-resolution measurements of water, oil, and gas phases, which helps in optimizing throughput, and reducing chemical usage and maintenance requirements.
The instrument is the only subsea-qualified separator and process control measurement system that can help in separation at the liquid level or oil/water interface level. Tracero has already installed about 750 units globally, each customized according to the user specifications.
Benefits of the Deal
The deal has ensured Tracero’s global presence as it works with TechnipFMC to deliver its tailored subsea technology in Brazil. Tracero looks forward to not only working in the Brazilian energy industry but also expanding its operations in the northeast of England.
The contract is all set to create a local economic impact by creating up to 10 new jobs. The HISEP project will also deliver sustainable benefits that will help build a better future.
Key Picks
Investors interested in the energy sector might look at some better-ranked stocks like ARC Resources Ltd. AETUFand Gulfport Energy Corporation GPOR.
Calgary, Canada-based ARC Resources is engaged in the exploration, acquisition and development of oil and natural gas properties. AETUF’s expected EPS growth rate for next year is 50.78%, which aligns favorably with the industry growth rate of 10.50%.
Gulfport Energy is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America. The Zacks Consensus Estimate for GPOR’s 2024 earnings indicates 108.53% year-over-year growth.
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