Exxon Mobil Corporation XOM has awarded a major deepwater decommissioning contract to integrated energy services provider EnerMech for its 25-year-old Hoover-Diana development in the U.S. Gulf of Mexico, now referred to as the Gulf of America. This marks EnerMech’s first large-scale decommissioning campaign in the region.
The Aberdeen-headquartered firm will deliver a complete flowline decommissioning package, including the flushing, pigging, and filling of subsea pipelines, umbilicals, and flowlines, as part of ExxonMobil’s effort to safely retire aging infrastructure in deepwater fields.
XOM Strengthens Ties With EnerMech Through Gulf Decom Deal
The new assignment reinforces a growing relationship between ExxonMobil and EnerMech that began with the operator’s Guyana operations in 2018. EnerMech CEO Charles Davison Jr. said that the contract followed a competitive tender process and is a testament to the company’s integrated service delivery model and operational expertise.
“This multi-service end-of-lifecycle project requires a highly skilled and competent workforce,” said Davison. “We developed a tailored methodology to maximize efficiencies, minimize risks, and ensure a safe, cost-effective execution.”
XOM’s Hoover-Diana Field: A Deepwater Pioneer
The Hoover-Diana project, located about 200 miles south of Houston in 4,800 feet of water, began production in May 2000. It was one of the first to utilize the deep draft caisson vessel (DDCV) — a massive 83-story floating platform that integrates both drilling and production functions.
The upcoming work scope involves flushing hydrocarbons, seawater fill operations, nitrogen flushing via subsea vessels, and coiled tubing services. The Northern Diana flowline will undergo final seawater filling as part of the decom process.
EnerMech Eyes Future Growth in U.S. Gulf Decommissioning
With many Gulf assets nearing the end of their productive lives, EnerMech sees significant growth opportunities in the region’s expanding decommissioning market. Jon Felton, Technical Solutions director for the Western Hemisphere, said the company’s ability to coordinate multiple service lines under a single contract differentiates it in a competitive space.
“Our methodology meets ExxonMobil’s expectations and sets a new benchmark for efficiency and safety in deepwater decommissioning,” Felton noted.
This contract follows EnerMech’s recent win for decommissioning work on an FPSO in the UK North Sea, underscoring its global expansion and increasing focus on late-life asset management.
XOM’s Zacks Rank & Key Picks
XOM currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Subsea 7 S.A. SUBCY, Oceaneering International, Inc. OII and RPC Inc. RES. Subsea 7 presently sports a Zacks Rank #1 (Strong Buy), while Oceaneering Internationaland RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2025 EPS is pegged at $1.31. The company has a Value Score of A.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.
The Zacks Consensus Estimate for OII’s 2025 EPS is pegged at $1.79. The company has a Value Score of B.
RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC’s current dividend yield is higher than that of the composite stocks in the industry. Its new Tier IV dual-fuel fleet has boosted profits, with plans to further expand high-efficiency equipment to enhance operational capabilities.
The Zacks Consensus Estimate for RES’ 2025 EPS is pegged at 38 cents. The company has a Value Score of A.
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
Exxon Mobil Corporation (XOM): Free Stock Analysis Report Oceaneering International, Inc. (OII): Free Stock Analysis Report RPC, Inc. (RES): Free Stock Analysis Report Subsea 7 SA (SUBCY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
