Seatrium Shares Surge After Announcement of MOU with BP Exploration & Production
SHARES of Seatrium surged on Thursday (Feb 13) after it announced its memorandum of understanding (MOU) with BP Exploration & Production, a subsidiary of multinational oil and gas company BP, for a floating production unit (FPU) in the US Gulf of America.
Market Reaction
At 9.41 am the counter rose to S$2.45, up 6.5 per cent or S$0.15 from its closing price of S$2.30 on Wednesday. The last time it closed at such levels was in February 2018.
It later eased to S$2.44 at 10.16 am, still up by 6.1 per cent or S$0.14, with 35.2 million shares changing hands.
About the MOU
Conclusion
Seatrium’s shares surged on the news of the MOU with BP Exploration & Production, indicating a positive sentiment among investors. The deal is expected to provide a significant boost to the company’s revenue and expand its presence in the US Gulf of America.
FAQs
Q: What is the purpose of the MOU between Seatrium and BP Exploration & Production?
A: The MOU is for Seatrium to provide engineering, procurement, construction, and commissioning services for the Tiber FPU to support the development of BP’s deepwater assets in the US Gulf of America.
Q: What are the terms of the MOU?
A: The terms of the MOU are not disclosed, but it is expected to provide a significant boost to Seatrium’s revenue and expand its presence in the US Gulf of America.
Q: What are the benefits of the MOU for Seatrium?
A: The MOU is expected to provide Seatrium with a significant boost to its revenue and expand its presence in the US Gulf of America, making it a more attractive investment opportunity for shareholders.
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