Petrofac Ltd. POFCY, an oilfield services firm, has signed a new master service agreement with Marathon Oil Corporation MRO. Per the terms of the agreement, Petrofac will offer its services for MRO’s crucial onshore and offshore assets in Equatorial Guinea. This includes five of Marathon Oil’s offshore steel jacket facilities in the Alba Field and the Alba Gas Plant onshore.

Petrofac will support MRO’s operations by offering its technical expertise and engineering assistance to achieve operational excellence and ensure the integrity and safety of these key assets. POFCY had previously provided engineering, construction and maintenance services to Marathon Oil’s Brae assets. These assets are located in the UK North Sea. The new agreement builds on a long-standing relationship between the two companies and also adds to Petrofac’s strong track record of providing engineering and maintenance services.

POFCY has already fortified its presence in regions like Ivory Coast, Ghana, Senegal and Mauritania. Following a prior Technical Services Contract with GEPetrol in Equatorial Guinea, this new contract strengthens Petrofac’s foothold in the region. Petrofac stated that the new agreement reflects its reputation as an efficient service provider, focused on creating value for its clients. Africa is a key growth area for the company and it looks forward to strengthening its relationship with Marathon Oil and supporting its crucial onshore and offshore assets in Equatorial Guinea.

Zacks Rank and Key Picks

Currently, POFCY carries a Zacks Rank #3 (Hold), while Marathon Oil (MRO) holds a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the energy sector are PEDEVCO Corp. PED and FuelCell Energy FCEL. PEDEVCO presently sports a Zacks Rank #1 (Strong Buy), while FuelCell Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PEDEVCO is engaged in the acquisition and development of energy assets in the United States and Pacific Rim countries. PED stands to benefit from its holdings in the Permian Basin, one of the most prolific oil-producing regions in the United States, as well as in the D-J Basin in Colorado, which includes more than 150 high-quality drilling locations. Combined with bullish oil prices, this is expected to boost the company's production and overall profitability.

FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, resulting in reduced carbon emissions and minimizing the environmental impact of power generation. As such, it is anticipated to play a crucial role in the energy transition by enabling industries and communities to move from traditional fossil fuels toward low-carbon alternatives.