SLB, Subsea7 Partner With C-Power for Ocean Energy Solutions

SLB SLB, an American oilfield services company, through its OneSubsea joint venture (JV), has teamed up with C-Power and Subsea7 S.A. SUBCY to explore innovative ocean energy solutions. The focus of this partnership is to develop a low-cost, low-carbon power source for subsea applications.

SLB OneSubsea's Integrated Solution

SLB OneSubsea, the JV backed by SLB, Aker Solutions and Subsea7, will provide an integrated subsea system, including electric actuation and wireless telemetry, to support the 18-month field test of C-Power's SeaRAY autonomous offshore power system (AOPS). This project has garnered the support of the U.S. Department of Energy, further cementing its importance in advancing renewable ocean energy technologies.

C-Power's CEO, Reenst Lesemann, emphasized the significance of the collaboration, noting that Subsea Integration Alliance partners SLB OneSubsea and Subsea7 are leaders in subsea products and services. He pointed out that both companies align with C-Power's vision for reducing the cost, complexity and carbon intensity of offshore operations through remote power generation and data communications.

SLB OneSubsea and C-Power to Conduct Field Test

The field test will be conducted at the PacWave South wave energy site offshore Newport, OR, to evaluate the long-term reliability of C-Power's SeaRAY AOPS in the challenging ocean environment. The system is aimed at powering and supporting autonomous underwater vehicles, robotics, operational equipment and satellite communications, gathering valuable data for the progress of the project.

Exploring SLB OneSubsea's Potential for Sustainable Energy

SLB noted that the joint industry project will focus on digitalization, electrification and fiber optic sensors to explore how wave energy can be integrated into subsea operations. SLB OneSubsea's CEO, Mads Hjelmeland, highlighted that collaboration and innovation are crucial for achieving significant improvements in cost and carbon efficiency, paving the way for a sustainable energy future.

In June, C-Power added Scotland's Green Marine to its Partner Engagement and Co-development program, showcasing the growing interest in advancing the SeaRAY AOPS technology for broader offshore applications.

By combining resources and expertise, SLB, Subsea7 and C-Power aim to accelerate the adoption of ocean energy solutions, which can play a pivotal role in reducing the carbon footprint of subsea operations globally.

Zacks Rank & Key Picks

Currently, both SLB and SUBCY carry a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at a couple of better-ranked stocks like Core Laboratories Inc. and VAALCO Energy, Inc., each carrying a Zacks Rank #2 (Buy) at present.

Core Laboratories, an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity in the global hydrocarbon reserve base. CLB's expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.

The Zacks Consensus Estimate for CLB's 2024 EPS is pegged at $0.95. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

VAALCO Energy is an independent energy company involved in upstream business operations, with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company's production outlook seems bright.

The Zacks Consensus Estimate for EGY's 2024 EPS is pegged at $0.65. The company has a Value Score of A. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.

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