NOV Secures Key Contract for Argentina's First FLNG Project

NOV Inc. NOV, a Houston-based oil and gas equipment and services company, has secured a significant contract to supply its APL Submerged Swivel and Yoke (“SSY”) system for Argentina’s first-ever offshore floating LNG (“FLNG”) project, led by Southern Energy SA. This initiative is supported by a consortium of major industry players, including Pan American Energy, Pampa Energía, Harbour Energy HBRIY, YPF Sociedad Anónima YPF and Golar LNG Limited GLNG, all key contributors to the advancement of Argentina’s offshore energy sector.Argentina’s First FLNG Project Marks a Turning Point in Natural Gas ExportPositioned in the Gulf of San Matías, this project represents Argentina’s strategic entry into the global FLNG market. The development will utilize the redeployed Hilli Episeyo FLNG, previously in service offshore Cameroon, which is capable of producing approximately 2.4 million tons of LNG annually.The repurposing of the Hilli Episeyo is a cost-efficient and environmentally forward-thinking solution. By leveraging an existing floating unit, the consortium is significantly reducing both project lead time and embedded carbon emissions compared with a conventional newbuild FLNG.Role of NOV’s APL Submerged Swivel and Yoke SystemAt the core of this FLNG advancement lies the APL SSY system, a robust and compact technology built upon proven turret and swivel architecture. This system delivers secure mooring and continuous transfer of natural gas through a subsea pipeline, ensuring year-round, all-weather operations without the need for traditional jetty infrastructure.This not only simplifies the overall project architecture but also mitigates risk, optimizes costs and enhances operational efficiency — key factors in offshore LNG environments.Enhanced Project Efficiency Through Jetty-Free DesignThe elimination of a fixed jetty, made possible by the SSY system, offers a significant competitive advantage. It drastically reduces the topside infrastructure requirements, resulting in faster deployment, reduced capital expenditure and streamlined construction logistics.The compact and modular nature of the APL SSY system makes it particularly suitable for remote field developments, such as this offshore Argentine installation. It facilitates faster integration with redeployed FLNG units, such as the Hilli Episeyo, while ensuring longevity and reliability throughout the terminal's lifecycle.Strategic Milestone for NOV and Offshore LNG InfrastructureThis award signifies NOV’s first engagement in Argentina’s FLNG sector, underlining its capability and reputation as a trusted partner for offshore solutions. The collaboration with Southern Energy SA signals a broader trend of global diversification in offshore LNG production and exportation. NOV’s entry into the Argentine market reinforces its strategic intent to support energy transitions across emerging economies.According to Anders Vaalandsmyr, director of Technology and R&D at APL, supplying the SSY for Argentina’s first FLNG project was a proud moment and a step toward setting new standards in gas export with Southern Energy SA.Technology Built for Long-Term Service in Challenging Offshore ConditionsThe SSY system is engineered for long-term offshore deployment, featuring specific design elements that ensure it withstands harsh marine environments while maintaining seamless operation over decades. Its integrated design allows for minimal maintenance, higher uptime and better adaptability to varying offshore field requirements.As offshore LNG projects often face operational hurdles due to isolation, unpredictable weather and logistics constraints, technologies like the APL SSY system are instrumental in maintaining stable and safe operations over extended periods.Argentina’s LNG Ambitions Align with Global Demand TrendsWith global LNG demand projected to rise significantly in the coming decades, Argentina is positioning itself as a key LNG exporter. The Gulf of San Matías FLNG project is not just a national milestone but a strategic regional move to leverage Argentina’s vast natural gas reserves and contribute to the global energy supply chain.By investing in FLNG infrastructure and partnering with technological leaders like NOV, Argentina is laying the groundwork for sustainable and scalable LNG export capacity that meets international standards.Reinforcing NOV’s Global Footprint in Offshore LNG MarketsThis contract further cements NOV’s presence in the global offshore LNG market. With extensive expertise in turret and swivel technologies and a robust track record of engineering solutions for complex offshore installations, NOV continues to set benchmarks in floating production systems.The deployment of the APL SSY system for Argentina’s first FLNG terminal is a testament to NOV’s innovative engineering capabilities, project reliability and adaptability to new geographical markets.ConclusionThe contract given to NOV for supplying the APL Submerged Swivel and Yoke system for Argentina’s first offshore FLNG project shows how advanced technology, teamwork and smart use of resources come together. As Argentina starts exporting LNG, this project improves the country's energy infrastructure and demonstrates how reliable offshore technology can help to create cleaner energy solutions. With the Hilli Episeyo FLNG and NOV’s APL SSY system, the Gulf of San Matías project is a key example of innovation in Latin America's energy industry.NOV's Zacks RankCurrently, NOV has a Zacks Rank #4 (Sell), HBRIY and GLNG have a Zacks Rank #3 (Hold) each, and YPF has a Zacks Rank #5 (Strong Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NOV Inc. (NOV): Free Stock Analysis Report YPF Sociedad Anonima (YPF): Free Stock Analysis Report Golar LNG Limited (GLNG): Free Stock Analysis Report Harbour Energy PLC Sponsored ADR (HBRIY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks