FMC Tech Gets TOTAL Project of $80M - Analyst Blog

Oil drilling equipment maker FMC Technologies Inc. (FTI) announced the receipt of an $80 million contract (Option 3 - Girassol Infills) from French oil major TOTAL SA (TOT). The deal calls for FMC Technologies to manufacture and supply subsea production systems to TOTAL-operated Girassol Resource Initiative (GirRI) project in Block 17 development, located offshore Angola in the Gulf of Guinea. Till date, the GirRI project has reached a total value of approximately $180 million in revenue to the oilfield services provider.

FMC Technologies said that the agreement (under Option 3) includes the manufacturing of three subsea trees, six wellheads and assorted flowbase and jumper equipment. The company expects delivery to begin in the fourth quarter of 2011. The order is part of FMC Technologies' strong and longstanding relationship with TOTAL and will support the Girassol field.

TOTAL E&P Angola (wholly-owned subsidiary of TOTAL) holds a 40% operated interest in the Block 17 development, deep offshore Angola. FMC Technologies has supported a number of projects in TOTAL's Block 17 development (including Girassol, CLOV, Rosa and Pazflor).

Houston, Texas-based FMC Technologies is a leading manufacturer and supplier of technology solutions for the energy industry. The company, which operates 25 manufacturing facilities in 15 countries, is engaged in the designing, producing and servicing technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead production systems, high pressure fluid control equipment, measurement solutions and marine loading systems for the oil and gas industry.

FMC Technologies shares currently retain a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock.

 
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