) subsidiary Framo Engineering entered into a $200 million
contract with Total E&P Angola, wholly-owned subsidiary of
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Per the deal, Framo Engineering will deliver subsea multiphase
pumping system for the Girassol Resources Initiatives (GirRI)
Project. The pump system will be installed in Block 17, offshore
Angola at a water depth of 4,429 feet. It will augment the rates
for two production flow loops.
The agreement also includes two subsea pump modules and a full
system of topside power and control. The multiphase pump system
incorporates the latest helico-axial technology. It can record
differential pressure of up to 120 bar.
This is Schlumberger's third contract with Total E&P Angola
for its Block 17 asset.
Assembling and testing of the system will be done at Framo
Engineering's advanced test facility at Horsoy, Norway. It is
expected that the pump system will be delivered in summer of
Earlier in August, Framo Engineering won a $100 million contract
from A/S Norske Shell - subsidiary of
Royal Dutch Shell plc
) for supply of booster pump system for its Draugen Field in
Houston, Texas-based Schlumberger Limited is a leading oilfield
services company, providing technology, project management and
information services to the global oil and gas industry.
We believe Schlumberger will benefit in the next several quarters
from its strong product and services portfolio. We also believe
the company is favorably positioned to benefit from current
trends in oilfield services, given improving activity levels and
greater need for stimulation and completion of services in North
However, seasonal and adverse weather conditions, such as
hurricanes in the Gulf of Mexico and extreme winter conditions in
the U.S., Canada, Russia, and the North Sea, may adversely affect
demand for the company's services and operations.
Hence, we maintain our long term Neutral recommendation on the