Cameron Lands Jette Subsea Contract - Analyst Blog
October 13 2011 - 1:36PM
Zacks
Oil drilling equipment maker
Cameron International Corp. (CAM)
announced a $56 million contract from Norwegian oil company Det
Norske Oljeselskap ASA to supply future subsea technology solutions
for its oil and gas projects in the North Sea.
Cameron said that the deal –
representing its first full subsea system supply in the Norwegian
sector of the North Sea – includes the development of wellheads,
trees, flow bases, electro-hydraulic multiplexed controls,
connections, pipeline end manifolds and other associated subsea
equipment. The company expects delivery to begin in early 2012.
The Cameron-supplied subsea
production systems will aid the fast track development of the Jette
field located in blocks 25/7 and 25/8 offshore Norway. Det Norske
is aiming for the project to come online during the first quarter
of 2013. The Jette field – Det Norske’s first development as
operator – is estimated to contain about 14 million recoverable oil
equivalent barrels with production during the first year targeted
at 14,000 barrels per day.
Houston, Texas-based Cameron is a
leading manufacturer of pressure control equipment used in onshore,
offshore, and subsea applications for oil and gas drilling,
production, and transmission. The company operates under two main
segments: Drilling & Production Systems (DPS), Valves &
Measurement (V&M) and Process & Compression Systems
(PCS).
Cameron, which competes with
FMC Technologies Inc. (FTI) and
National-Oilwell Varco (NOV) in
the ‘Oilfield Machineries and Equipment’ sector, currently retains
a Zacks #2 Rank, which translates into a short-term Buy rating.
We believe Cameron is well
positioned going forward given its dominant market share,
technology leadership, efficient execution skills and backlog of
more than $5.5 billion. The increase in North American drilling
activity, along with potential opportunities from the industry
complying with new pressure control equipment rules, has added to
this bullish sentiment. Furthermore, we believe that Cameron is
poised to benefit from the improving subsea activity levels through
2011.
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