Hunting's Brazil Win: OOR Tech Fuels South American Expansion

LONDON, UK – December 01, 2025

A press release from Hunting PLC might seem routine, but the recent announcement of its first Brazilian contract for its Organic Oil Recovery (OOR) technology is anything but. This isn't just another deal; it's the first major validation of a calculated strategic pivot and a crucial foothold in the lucrative South American energy market. The deal, covering the sampling and testing of 20 onshore wells for an undisclosed Brazilian operator, signals that Hunting’s recent acquisition spree is beginning to bear fruit, potentially unlocking significant value for the precision engineering group.

A Strategic Play Validated

This contract is the culmination of a deliberate strategy by Hunting to expand beyond its traditional manufacturing roots and build an integrated, full-cycle subsea and production technology platform. The acquisition of OOR's parent company in March 2025, alongside the earlier purchase of Flexible Engineering Solutions, marked a clear intent to move into higher-margin, technology-driven services. This Brazilian contract is the first tangible return on that investment. It demonstrates that Hunting can successfully leverage its extensive global network to introduce new, innovative technologies into highly active energy regions.

Jim Johnson, Hunting's Chief Executive, highlighted this synergy, stating, “This contract represents a strategic milestone for OOR and for the wider Hunting Group. Not only does it unlock the technology’s potential in an important geographical region, but it demonstrates how OOR can leverage Hunting’s diverse global footprint to accelerate its long-term commercial potential.”

The move is more than just opportunistic. Starting January 1, 2026, OOR will be formally integrated into the Subsea Technologies operating segment. This organizational shift underscores the long-term vision: to create a comprehensive suite of solutions that address the entire lifecycle of an oil well, from subsea infrastructure to late-life production enhancement. For investors, this signals a shift from a cyclical equipment provider to a more resilient, service-oriented technology company, a strategy reinforced by other recent high-value contract wins for subsea components in Guyana's burgeoning offshore sector.

The Technological Edge in Mature Fields

What makes the OOR technology compelling enough to secure a foothold in a new continent? The answer lies in its unique value proposition, particularly for operators of aging oil fields. Unlike many Enhanced Oil Recovery (EOR) methods that require massive upfront investment in infrastructure, OOR is marketed as a cost-efficient technology with no capex requirements and a simple deployment process.

This is a game-changer for the operators of mature onshore fields, who often face declining production rates and tight margins. The technology works by manipulating the resident down-hole ecology to improve the ultimate recovery of oil reserves. But its benefits extend beyond just boosting output. OOR promises to lower the "water cut"—the percentage of water produced alongside oil—which is a major operational headache and cost driver in end-of-life wells.

Furthermore, the technology tackles another critical operational and safety challenge: hydrogen sulphide (H2S). This toxic, corrosive gas requires expensive mitigation measures and poses significant risks to personnel and equipment. By lowering H2S levels directly within the reservoir, OOR can drastically reduce ongoing maintenance costs and improve the overall safety and environmental profile of an operation. This combination of increased production, lower operational costs, and reduced risk makes it a uniquely attractive solution in the competitive EOR landscape.

Unlocking Brazil's Onshore Potential

The timing and location of this contract are just as significant as the technology itself. Brazil's onshore oil sector is in a period of dynamic transition. For years, state-owned Petrobras has been divesting its mature onshore and shallow-water assets to focus on its prolific deepwater pre-salt fields. This has created a new class of independent Brazilian operators who have acquired these fields and are now under pressure to maximize their value.

These new owners are hungry for innovative, cost-effective solutions to revitalize assets where primary recovery methods have run their course. With production from Brazil's non-pre-salt basins having fallen by over 50% in recent years, the need for effective EOR is acute. The OOR contract, involving 20 wells across 11 different fields in Northern Brazil, is a direct response to this market demand.

While the Brazilian company remains unnamed, the scope of the project—a multi-well, multi-field sampling program—suggests a serious commitment to evaluating the technology's potential. Operations are already underway, but the real test will come in 2026, when field implementation and analysis are completed. A successful outcome could transform these initial 20 wells into a powerful case study, opening the door to widespread adoption across Brazil's vast portfolio of mature onshore fields.

Decoding Risk and Opportunity

For investors and market watchers, Hunting’s Brazilian venture presents a clear picture of calculated risk and substantial opportunity. The primary opportunity lies in the validation of its M&A strategy. If the OOR technology performs as advertised in the diverse geological conditions of onshore Brazil, it will not only solidify Hunting's investment but also establish a powerful, scalable revenue stream. The "no capex" model is particularly potent, as it lowers the barrier to entry for customers and could lead to rapid adoption and a recurring service-based income. A win in Brazil could serve as a launchpad for expansion across Latin America, a region dotted with mature fields ripe for optimization.

However, the risks are not to be ignored. The current contract is fundamentally a pilot program—a "sampling and testing" award. The future of OOR in Brazil, and perhaps globally, hinges on the results of the 2026 analysis. A failure to meet performance expectations could stall momentum and lead the market to question the premium paid for the acquisition. The competitive landscape for EOR solutions is fierce, and while OOR has compelling differentiators, it must prove its superiority in real-world conditions.

The success of this initial foray will be a key performance indicator for Hunting’s strategic pivot. The results from those 11 Brazilian fields will likely have an outsized impact on the company's valuation and market perception, making it a critical story for investors to follow as Hunting attempts to engineer its own recovery and growth.