In its second deal with Norway-based Statoil ASA (STO) in June, FMC Technologies (FTI) was awarded a contract, worth $50 million, to manufacture and supply subsea production equipment to the former.
The equipment will be utilized for the development of Visund Nord, a fast-growing oil and gas field located in water depths of approximately 1,150 feet in the Norwegian sector of the North Sea.
The scope of the deal includes the manufacture of two subsea production trees, one manifold and associated subsea and topside control systems. All equipment for the project will be based on a standard subsea solution drafted by FMC Technologies.
Deliveries for the integrated structure and wellhead systems are slated for spring 2012, with final deliveries scheduled to take place in the first quarter of 2013.
Incorporated in 2000, Houston, Texas-based FMC Technologies is a leading manufacturer and supplier of technology solutions for the energy industry and operates 25 manufacturing facilities in 15 countries.
We believe that the company’s long-term earnings visibility based on a strong order flow and backlog for subsea products and services is partially offset by an uncertain commodity price outlook and a soft global economy.
Statoil, on the other hand, is engaged in the exploration, production, transportation, refining and marketing of petroleum and petroleum-derived products, with a strong focus on the Norwegian Continental Shelf (NCS).
We believe that the company remains well positioned to sustain its steady production growth over the next few years with its large resource base at NCS.
Both companies, currently, retain a Zacks #3 Rank, which translates into short-term Hold rating.
FMC TECH INC (FTI): Free Stock Analysis Report
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