NOV Inc. NOV, a global oilfield services firm, has inked an agreement with Petrobras S.A. PBR to develop CO2-resistant flexible pipes for deepwater oil and gas operations. The companies mentioned that stress corrosion cracking (SCC), which is caused byhigh CO2 concentration, is a significant challenge in oil and gas operations in deepwater and subsea environments.

The collaboration aims to develop stainless steel that will help combat SCC, which affects oil and gas subsea infrastructure. Per the terms of the contract, Petrobras will invest in stainless steel armoring technology by working closely with NOV. The partnership aims to develop an effective solution that meets the very strict industry standards.

Accordingly, the partners are focusing on creating 6-inch and 8-inch production and gas injection risers along with associated flowlines specifically designed to endure high levels of CO2 in deepwater environments.

According to NOV, this technology also aims to retain the core features of standard flexible pipes. This includes easy installation and deployment, along with compatibility with the existing oil and gas infrastructure. Preserving these features should ensure minimum disruptions to ongoing operations and facilitate a cost-effective integration with Petrobras’ existing infrastructure.

NOV has highlighted that this innovative solution to combat SCC demonstrates how collaboration and knowledge sharing advance technological developments that ultimately benefit the entire oil and gas industry.

Zacks Rank and Key Picks

Currently, both NOV and PBR carry a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Archrock Inc. AROC and Nine Energy Service NINE. While Archrock currently sports a Zacks Rank #1 (Strong Buy), Nine Energy Service carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.

Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With sustained demand for oil and gas in the future, the need for NINE’s services is expected to increase, positioning the company for long-term growth.

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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report

NOV Inc. (NOV) : Free Stock Analysis Report

Archrock, Inc. (AROC) : Free Stock Analysis Report

Nine Energy Service, Inc. (NINE) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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