Subsea Equipment Agreement
FMC Technologies, Inc. has nnounced that it has signed a three-year frame agreement with ConocoPhillips Indonesia Inc. Ltd for the manufacture and supply of subsea production equipment. The contract includes an immediate USD 57 million call-off and is expected to result in approximately USD 96 million in total revenue to FMC Technologies if all of the subsea equipment included in the agreement is ordered.
The equipment will support three of ConocoPhillips Indonesia’s offshore fields, which are located in approximately 300 feet (90 meters) of water offshore Indonesia in the Natuna Sea. FMC’s scope of supply includes the manufacture of up to 12 subsea production trees, wellheads, control systems and associated offshore tooling and services. The equipment will be engineered and manufactured at FMC’s facilities in Indonesia, Singapore and Malaysia, with deliveries scheduled to commence in 2011.
“This award represents our first project with ConocoPhillips in Indonesia” , said Tore Halvorsen, FMC’s Senior Vice President of Global Subsea Production Systems. “It is a significant achievement for our Asia-Pacific facilities, and we are pleased to support ConocoPhillips Indonesia with this development.”
FMC Technologies, Inc. is a provider of technology solutions for the energy industry. Named by Fortune magazine as the world’s most ddmired oil and gas equipment, eervice Company in 2010, the company has approximately 11,200 employees and operates 25 production facilities in 15 countries. FMC Technologies designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry.
This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond the Company’s ability to control. These risks and uncertainties are described under the caption “Risk Factors” in the company’s annual report on Fform 10-K for the year ended December 31, 2009 and may be modified in subsequent quarterly reports filed by the Company with the securities and Exchange Commission that may be accessed on the Company’s website. The Company cautions shareholders and prospective investors that actual results may differ materially from those indicated by the forward-looking statements.