Jacobs Wins EPCM Contract For Khazzan Tight Gas Project

Jacobs Engineering Group Inc. (NYSE:JEC) recently secured a three-year engineering, procurement and construction management (EPCM) services contract from BP plc. (NYSE:BP) Per the deal, the company offer its premium services for supporting Phase 2 of the prestigious Khazzan Tight Gas Project.

Khazzan is considered to be one of the largest tight gas projects in the Middle East. It is located in the Sultanate of Oman. The project’s Phase 1 had been planned to produce approximately seven trillion standardized cubic feet of gas and roughly 25,000 barrels of condensate gas per day. The gas productivity of Phase 1 was above expectations in September 2017

Jacobs had provided its non-imitable EPCM services during the infrastructure and process work of the project’s Phase 1.

According to the latest deal, Jacobs will not only support the project but assist the ongoing expansion of the wellsite facilities, export pipelines and gas gathering system as well.

Our Take

Over the last three months, Jacobs’ shares have rallied 15.9%, outperforming 9.2% growth recorded by the industry.

This Zacks Rank #2 (Buy) company has been boosting its competency on the back of numerous contract wins. Over the last few months, the company has secured contracts from various institutions and companies like Evonik Industries, Royal Dutch Shell PLC RDS.B, Department of Energy National Nuclear Security Administration (NNSA), Aerie Pharmaceuticals, Inc. (NASDAQ:AERI) and Ferring Pharmaceuticals Inc. Moreover, the acquisition of CH2M HILL Companies Ltd. (in December 2017) will likely fortify Jacobs’ business in the near term.

Jacobs quotes competitive prices for its contracts and ensures that the number of contract receipts increases over time. Notably, elevated transportation spending of the government authorities of Australia, the U.K. and the United States has largely increased the company’s contract-winning opportunities.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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