Transocean (RIG), Intellilift Team Up for Software Solutions
Transocean (RIG) and Intellilift aim to provide software solutions, allowing operators to improve the consistency of their operations.
Transocean Ltd. RIG formed a joint venture with Intellilift to commercialize products and services based upon 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 Norway-based industrial technology group Nekkar, will own a 33% ownership interest in the partnership.
The digital well construction solution will connect with the drilling rig's control system to implement tasks independently per the well plan, which is designed to accelerate the well construction process. Beside this, an integrated real-time monitoring platform will measure downhole progress and evaluate the well conditions to provide important and precision-enhancing feedback to the drilling control system.
Intellilift has digitized and advanced increased automation and remote-controlled operations in offshore vessels and drilling rigs. The company will provide development resources, licenses for existing software and other services into the joint venture, which has been created as a separate entity. Intellilift did not reveal 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 to enable operators to continue improving the consistency of operations, while reducing drilling expenses through more reliable and faster drilling operations.
Company Profile & Price Performance
Switzerland-based Transocean is one of the world’s largest offshore drilling contractors and leading providers of drilling management services.
Shares of the company have underperformed the industry in the past six months. The stock has gained 4.2% compared with the industry’s 11.8% growth.
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Zacks Rank & Stocks to Consider
Transocean currently has a Zacks Rank #3 (Hold).
Some better-ranked players in the energy space are Diamondback Energy FANG, Chesapeake Energy CHK and Range Resources Corporation RRC, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Diamondback’s bottom line for 2021 is expected to surge 60.9% year over year.
Chesapeake’s bottom line for 2021 is expected to increase 12.3% year over year.
Range Resources’ bottom line for 2021 is expected to surge 73.2% year over year.
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