Shell Taps MODEC for Multi-year FPSO Contract Offshore Brazil

Shell plc SHEL, the British oil and gas supermajor, has awarded a multi-year operations and maintenance contract to the Japanese shipbuilding company, MODEC, to work on its Gato do Mato project in Brazil. Shell’s Brazilian subsidiary, Shell do Brasil, recently made a final investment decision on the Gato do Mato project, which is a deepwater development located in the Santos Basin offshore Brazil.MODEC has been tasked with an operations and maintenance assignment for a floating production, storage, and offloading (FPSO) vessel, specifically designed for this project. Shell had delayed the Final Investment Decision (FID) on the Gato do Mato deepwater project in November 2022. At the time, the company stated that it planned to take an FID by the first quarter of 2025. The project is anticipated to come online in 2029.Adhering to the timeline, Shell decided to hire MODEC to work on the hull design and all the associated topside facilities for the FPSO designed for this deepwater development. The FPSO Gato do Mato will boast a newly constructed, custom-designed next-generation hull that will support the unit’s 25-year lifespan. This FPSO is the 19th unit built by MODEC for working in Brazil. It is also the second unit developed for Shell for work in Brazilian waters.The FPSO can produce approximately 120,000 barrels of oil per day (bopd), along with associated gas and water. The vessel will be anchored at a water depth of approximately 2,000 meters. The FPSO shall be located approximately 200 kilometers to the south of Rio de Janeiro. The crude produced from the field will be stored in the FPSO tank and offloaded in shuttle tankers, from where it will be transported to the markets.MODEC had secured a front-end engineering design (FEED) contract for the deepwater project nearly a year ago. Following the FEED study, MODEC inked a sales and purchase agreement with Shell for the FPSO unit, specifically designed to operate in the Brazilian waters for the Gato do Mato development for 20 years.SHEL’s Zacks Rank and Key PicksSHEL currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the energy sector are Archrock Inc. AROC, Nine Energy Service NINE and NextDecade Corporation NEXT. While Archrock currently sports a Zacks Rank #1 (Strong Buy), Oceaneering International and NextDecade carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank 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.Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the need for NINE’s services is anticipated to increase, which should position the company for growth in the long run.NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. The demand for LNG as a clean-burning fuel continues to grow, and the commodity is expected to play a crucial role in the energy transition process. The company’s focus on expanding its liquefaction capacity is expected to enhance its position in the rapidly growing global LNG market, enabling it to meet the rising demand for natural gas.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Archrock, Inc. (AROC): Free Stock Analysis Report NextDecade Corporation (NEXT): Free Stock Analysis Report Nine Energy Service, Inc. (NINE): Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks