Transocean Ltd. RIG has formed a joint venture with Intellilift to market products and services based on a digital well construction solution, which the companies are currently developing.
The joint venture, which will be known as Inteliwell, is intended to incorporate digital systems for well construction, drilling control and real-time data monitoring. Intellilift, a subsidiary of Norwegian industrial technology group Nekkar, will hold a 33% stake in the partnership.
The digital well construction solution will connect to the drilling rig control system to independently implement the tasks according to the well plan, which is designed to speed up the well construction process. Beside this, an integrated real-time monitoring platform will measure downhole progress and assess well conditions to provide important feedback and improve accuracy to the drilling control system.
Intellilift has digitized and advanced increased automation and remote-controlled operations in offshore vessels and drilling platforms. The company will provide development resources, licenses for existing software and other services to the joint venture, which was created as a separate entity. Intellilift did not disclose any capital contributions to the joint venture.
With the formation of the joint venture, Intellilift is likely to benefit from Transocean’s global footprint and well construction skills. The partnership aims to provide software solutions that allow operators to continue to improve consistency of operations, while reducing drilling expenses through more reliable and faster drilling operations.
Company Profile and Price Performance
Transocean, based in Switzerland, is one of the world’s largest offshore drilling contractors and leading providers of drilling management services.
The company’s shares underperformed industry in the past six months. The stock gained 4.2% compared to the industry’s 11.8% growth.
Image source: Zacks Investment Research
Zacks rank and actions to consider
Transocean currently has a Zacks Rank # 3 (Hold).
Some better ranked players in the energy field are Diamondback Energy CROC, Chesapeake Energy CHK and Range Resources Corporation RRC, each currently sporting a Zacks Rank # 1 (strong buy). You can see The full list of today’s Zacks # 1 Rank stocks here.
Diamondback’s net income for 2021 is expected to grow 60.9% year-over-year.
Chesapeake’s net income for 2021 is expected to grow 12.3% year-over-year.
Range Resources’ net income for 2021 is expected to grow 73.2% year-over-year.
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Transocean Ltd. (RIG): Free Stock Analysis Report
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Range Resources Corporation (RRC): Free Stock Analysis Report
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