TechnipFMC Wins Major iEPCI Contract for Gato do Mato Offshore Brazil

TechnipFMC plc FTI, a global leader in subsea, onshore, offshore and surface technologies, has secured a significant integrated Engineering, Procurement, Construction and Installation (“iEPCI”) contract from London-based integrated oil and gas company, Shell plc SHEL, for its Gato do Mato greenfield development project offshore Brazil. With an estimated value exceeding $1 billion, this major contract marks a significant milestone in the longstanding collaboration between FTI and Shell, reinforcing their ability to deliver complex offshore projects with high levels of efficiency and innovation. The first quarter of 2025 will see the inclusion of this award in incoming orders.Key Details of the iEPCI Contract for Gato do MatoThe Gato do Mato project, located in Brazil’s deepwater Campos Basin, is an important greenfield development for SHEL, aiming to enhance production in this prolific oil-producing region. As part of the contract, Houston, TX-based oil and gas equipment and services company will be responsible for the complete integrated execution of the development, utilizing its cutting-edge subsea technologies and experience. This includes providing all engineering, procurement, construction and installation services, alongside the implementation of Subsea 2.0 configure-to-order (“CTO”) production systems.Subsea 2.0 is a revolutionary approach that enhances the flexibility and efficiency of subsea infrastructure, driving down costs and accelerating project delivery. By employing CTO systems, FTI ensures the ability to customize subsea production equipment to meet the specific requirements of the Gato do Mato field, enhancing the project’s overall performance and reliability. These advanced systems are designed to be delivered quickly and configured to fit the project’s unique challenges, reducing the time to first oil significantly.Strengthening FTI's Relationship With ShellThis significant contract is a testament to the strong and longstanding partnership between FTI and Shell, which spans over three decades. Jonathan Landes, president of Subsea at FTI, emphasized the depth of their successful collaboration, stating, "Throughout our 30-year partnership with Shell, we have built an overwhelmingly strong record of delivery. Our success in integrating and industrializing innovative solutions gives us the utmost confidence in providing the schedule certainty SHEL requires for this flagship project offshore Brazil."The close collaboration between the two companies is integral to the success of complex offshore projects like Gato do Mato. FTI’s ability to seamlessly integrate cutting-edge subsea technologies and innovative solutions ensures that SHEL can depend on them for timely delivery and top-tier project execution.Accelerating Time to First OilOne of the key drivers behind the Gato do Mato project’s success is the time to first oil. In the competitive and high-pressure world of offshore oil and gas development, the ability to bring a field online quickly is critical. The iEPCI model is designed to optimize project delivery by streamlining processes and reducing the overall timeline from conception to production. FTI’s commitment to excellence in project management, combined with its use of Subsea 2.0 technology, positions the Gato do Mato field for a swift and efficient ramp-up to full production.This approach not only accelerates the timeline but also ensures that the project is executed safely, within budget and to the highest industry standards. With schedule certainty and an emphasis on cost-effectiveness, the Gato do Mato project will serve as a model for future greenfield developments in Brazil and beyond.FTI’s Unmatched Expertise in Subsea EngineeringFTI’s reputation for excellence in subsea engineering has been earned over decades of successful project deliveries worldwide. The company’s integrated solutions are unmatched in the industry, combining engineering expertise, innovative technology and world-class project management capabilities. Through the implementation of Subsea 2.0 CTO systems, FTI continues to lead the way in subsea innovation, providing tailored solutions that drive project efficiency and optimize the lifecycle of subsea assets.The company’s focus on subsea production systems aligns with the industry's shift toward more sustainable, efficient and cost-effective solutions. By leveraging advanced technology, FTI reduces the environmental footprint of offshore projects while ensuring safe, reliable and high-performing subsea systems.FTI and Shell’s Continued Impact on Offshore BrazilThe award of this contract is a clear indication of the growing importance of Brazil’s offshore sector and its role in the global energy landscape. With vast reserves of oil and gas in the deep waters of Brazil’s coast, the country continues to be a key player in the global energy market. The Gato do Mato development will contribute to increasing production from this region, helping to secure Brazil’s position as one of the world’s leading oil producers.As FTI continues to expand footprint in Brazil, it strengthens position as a trusted partner for major energy companies, including Shell. With an ongoing commitment to technological innovation, safety and efficiency, FTI is poised to play a pivotal role in the continued development of Brazil's offshore oil and gas resources.In conclusion, the award of the iEPCI contract for Shell’s Gato do Mato development offshore Brazil marks a significant achievement for FTI. By combining advanced technologies like Subsea 2.0 with its unmatched expertise in subsea engineering, FTI is poised to deliver a project that will help SHEL accelerate production and enhance the efficiency of Brazil’s offshore energy resources. As the partnership between SHEL and FTI continues to grow stronger, the success of the Gato do Mato project will be another testament to the power of collaboration and innovation in the offshore oil and gas sector.Zacks Rank & Key PicksCurrently, FTI and SHEL each has a Zacks Rank #3 (Hold).Investors interested in the energy sector might look at some better-ranked stocks like Archrock AROC and  Delek Logistics Partners DKL, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.AROC is valued at $4.79 billion. In the past year, its shares have risen 40.2%.  Archrock is a provider of natural gas contract compression services and aftermarket services of compression equipment.DKL is valued at $2.35 billion. In the past year, its units have risen 7%. DKL manages and owns systems for moving and storing oil and other products. It operates pipelines that transport crude oil and refined products like gasoline and diesel. The company also collects crude oil from different areas and stores it in tanks.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 TechnipFMC plc (FTI): Free Stock Analysis Report Delek Logistics Partners, L.P. (DKL): Free Stock Analysis Report Archrock, Inc. (AROC): 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