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BP Unit Awards Well Intervention Contract to Island Constructor

A BP plc BP unit has awarded the contract for the provision of light well intervention services on the U.K. continental shelf to Island Constructor, the mobile offshore arm of marine contractor Island Offshore.

Per the terms of the agreement, further options may be exercised in August. The contract relates to inspection, maintenance and repair (IMR) services for the M/V Island Enforcer.

Island Offshore, a joint venture between the Ulstein family of Norway and the Chouest family of Louisiana, received the delivery of the 122-meter subsea installation and construction vessel from the Bergen Group in Norway in 2010.

Per the C-T, the agreement covers all aspects like vessel, ROV, survey, engineering and project management. Preliminary work will start immediately with the installation of two production jumpers and EFLs at BP’s Atlantis field in 6,500 fsw.

The Island Enforcer includes 250 and 100-ton Deck Cranes, Moon Pools and Helideck, two Schilling Ultra Heavy Duty ROVs. It also has a capability to house 120 people.

BP is one of the world's major energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemical products. Currently, the company reports mainly through four segments – Upstream, Downstream, Rosneft and Other Businesses and Corporate.

The company is offloading its non-core upstream properties while creating a portfolio with potentially stronger growth from a smaller base. BP is on track with its divestment plan of assets worth multi-billion dollars. Additionally, the company expects to see increased exposure to heavy crude differentials in the U.S. owing to ramped up heavy crude processing at the Whiting refinery.

Currently, BP carries a Zacks Rank #4 (Sell). Some better-ranked players from the energy sector are ReneSola Ltd. SOL, FutureFuel Corp. FF and Enviva Partners, LP EVA. Each of these stocks sports a Zacks Rank #1 (Strong Buy).

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BP PLC (BP): Free Stock Analysis Report
RENESOLA LT-ADR (SOL): Free Stock Analysis Report
FUTUREFUEL CORP (FF): Free Stock Analysis Report
ENVIVA PARTNERS (EVA): Free Stock Analysis Report
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