Offshore oilfield equipment manufacturer
FMC Technologies Inc.
) entered into a deal with Total E&P Angola, wholly-owned
) for supply of subsea equipment. Estimated value of the contract
is $33 million.
FMC TECH INC (FTI): Free Stock Analysis
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Per the deal, FMC Technologies will supply three additional
subsea well systems for the Pazflor field, located in block 17
offshore Angola. The original subsea system, which was delivered
to Total for the same field, has been functional for over a year.
The order is part of FMC Technologies' strong and longstanding
relationship with Total.
Earlier in 2011, FMC Technologies received an $80 million
contract from Total. The deal included manufacture and supply of
subsea production systems to Total-operated Girassol Resource
Initiative (GirRI) project in Block 17 development, located
offshore Angola in the Gulf of Guinea.
FMC Technologies is particularly well positioned in the subsea
systems market and has received numerous attractive subsea
contracts in the recent past. Earlier, in March, the company
signed a four-year subsea equipment supply pact with Brazilian
Petroleo Brasileiro S.A.
Texas-based FMC Technologies is engaged in 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.
However, we maintain a long-term Neutral recommendation on the
stock, given the uncertain commodity price outlook and a soft
global economy that continue to weigh on the company.
Additionally, competitive market conditions along with weak
pricing also make us apprehensive.