WTI (Aug) $67.34 -20c, Brent (Sep) $69.28 -24c, Diff -$1.94 -4c
USNG (Aug) $3.57 +3c, UKNG (Aug) 80.82p -1.31p, TTF (Aug) €33.605 -€0.98

Oil price

Oil is flat today, mixed news around, sanctions on Russia and better data from the US last week. The rig count last week was interesting, seeing that overall numbers were up 7 to 544 led to interest but still oil rigs fell, last week by 2 to 422.

Hunting

Hunting has today announced that it has been awarded an order totalling $31 million for its titanium stress joints (“TSJs”), which forms part of a phase three deepwater gas development in the Turkish area of the Black Sea.

Hunting’s Subsea Spring business unit, located in Houston, Texas, will supply six TSJs, which include the Group’s patented ‘Direct Pull-thru Tube’ technology, to be utilised on the second and third floating production, storage and offloading vessels operating on this deepwater development. The contract is anticipated to be completed over the next 24 months, with the first delivery expected in Q1 2027.

The award follows Hunting’s maiden contract for the phase two development received in 2024, which is currently under production and will be completed by 2026. Together, the two awards represent c.$51.6 million of revenue for the Group.

Hunting is actively pursuing additional contract opportunities in this phase three development for its recently acquired Flexible Engineered Solutions (“FES”) product portfolio, demonstrating the increased revenue potential in the high growth deepwater sub-segment from the Group’s enhanced product offering. This is in line with Hunting’s broader growth strategy, outlined at the Group’s Capital Markets Day in September 2023, which detailed the Group’s ambition to expand its subsea operations.

Following this contract win, Hunting’s Subsea product group now carries a sales order book totalling c.$125 million, up from $72.5 million at 31 December 2024. Further updates on the Group’s order book will be presented at the 2025 half year results on 28 August 2025.

Commenting on the new contract, Jim Johnson, Chief Executive said:
“Our continued success in the Turkish area of the Black Sea demonstrates the international demand and strength of Hunting’s titanium stress joint product offering. This order continues the Group’s run of success deploying this product line into key offshore regions including the Black Sea, Guyana, and the Gulf of Mexico. 

“Our revenue opportunities have also been expanded with the acquisition of FES in June, which forms part of our 2030 Strategy to target revenue from the longer cycle segment of the industry, which is less impacted by short-term commodity price volatility.”

The word subsea runs through a great deal of recent Hunting updates, results and of course the Capital Markets Day where the company detailed its ambitions in that area. This contract, worth $31m, is for Titanium Stress Joints and six of these will be be supplied from Houston, Texas and be utilised on the 2nd and 3rd FPSO’s on the deepwater development, take around 24 months to complete, with first delivery expected in Q1 2027.

The company has already received a contract for the phase two development in 2024, currently in production and expected to be completed by 2026, put together the awards represent c.$51.6m of revenue for the group. Put together with the other orders in the Subsea product group, they represent a handy c.$125m of sales up from $72.5m at the end of last year, quite justifying the concentration on the sector.

Unsurprisingly the company are ‘actively pursuing additional contract opportunities in this phase three development for its recently acquired Flexible Engineered Solutions product portfolio, demonstrating the increased revenue potential in the high growth deepwater sub-segment from the Group’s enhanced product offering’.

Hunting remains onward and upward in its progress to the highly sophisticated, high margin product areas in the parts of the industry ‘less impacted by short-term commodity price volatility’. Adding contracts here is gong to provide significant revenue for several years to come and I remain very positive on the outlook for Hunting.

Predator Oil & Gas

Predator has announced that rigless testing operations have commenced at the MOU-3 well at Guercif in Morocco.

The planned operations have been scheduled to be executed over a period of ten days.

The programme will complete the perforating and testing of the shallow “A” Sand.

Nothing much to add here but shareholders will be excited that crucial testing is now underway and has ten days to see what MOU-3 contains…

Original article   l   KeyFacts Energy Industry Directory: Malcy's Blog