BP plc BP, the British oil and gas giant, has awarded a contract to SBM Offshore to assist with the installation of the Kaskida semi-submersible Floating Production Unit (FPU). Per the terms of the contract, SBM Offshore is responsible for the wet tow of the FPU and its installation at the Kaskida deepwater oilfield in the Gulf of America ("GoA"). This implies that SBM Offshore will transport the floating production unit from the construction yard to its destination in the Gulf of America and install it at the deepwater oil field.
Details of the Kaskida Field
The Kaskida oilfield is slated to be BP’s sixth production hub in the Gulf of America shelf. The Kaskida field is a Paleogene development, located approximately 250 miles toward the southwest of New Orleans, in deepwater Gulf of America. It is a major greenfield development in the GoA, wholly owned by BP. In the initial phase, the company discovered that the development has estimated recoverable resources of approximately 275 million barrels of oil equivalent (boe). The field was discovered in 2006.
The floating production unit for the Kaskida field has a production capacity of 80,000 barrels of crude oil per day. The first phase of the project involves six wells. The production from the Kaskida development is expected to begin in 2029.
SBM Offshore’s Experience in Deepwater Projects
SBM Offshore believes that the new contract with BP highlights its commitment to the development and innovation of the global offshore industry. The contract its extensive experience in deepwater installations, with more than 150 floating production systems installed globally. The contract with BP should also help the company realize future growth in installation-related projects.
Other Developments Related to the Kaskida Oilfield
BP has hired Seatrium to carry out the engineering, procurement, construction, and onshore commissioning (EPC) tasks for the Kaskida FPU. Additionally, the joint venture between OneSubsea and SLB is responsible for providing a subsea boosting system for the development. TechnipFMC has clinched a contract to deliver subsea production systems for the project. This involves the design, construction, and installation of important subsea infrastructure like subsea umbilicals, risers, and flowlines and the supply of 20,000 pounds per square inch (psi) standardized subsea trees and manifolds. The project shall leverage BP’s knowledge and expertise in GoA shelf.
BP’s Zacks Rank and Key Picks
BPcurrently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Archrock Inc. AROC, Nine Energy Service NINE and Kinder Morgan, Inc. KMI. While Archrock currently sports a Zacks Rank #1 (Strong Buy), Nine Energy Service and Kinder Morgan 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. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. It 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 it for growth in the long run.
Kinder Morgan is a leading midstream player with a stable and resilient business model in North America, largely driven by take-or-pay contracts. KMI’s stable business model shields it from commodity price volatility, resulting in predictable earnings and facilitating reliable capital returns to shareholders. In the first quarter of 2025, Kinder Morgan declared quarterly cash dividends of 29.25 cents per share, reflecting an approximately 2% increase from the prior-year level.
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
BP p.l.c. (BP): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report Archrock, Inc. (AROC): Free Stock Analysis Report Nine Energy Service, Inc. (NINE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
