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FMC Technologies Awarded $172 Million Contract by Statoil

Oilfield equipment manufacturer FMC Technologies Inc.FTI has received a contract from Statoil STO for subsea work at the Phase 1 of the Johan Sverdrup field. The deal is valued at $172 million.

FMC Technologies will provide subsea trees, subsea wellheads, manifolds and integration of control systems. The parties have also signed agreements for add-on systems and subsea service offerings.

The Johan Sverdrup field is Norway's largest offshore oil find in 30 years. The field is expected to hold reserves of about 1.7-3 billion barrels of oil equivalent. Production from the field is expected to commence toward the end of 2019. When fully developed, the Johan Sverdrup field is anticipated to yield about 550,000-650,000 barrels of oil equivalents a day. This equates to about 25% of the current domestic output.

FMC Technologies is a leading manufacturer and supplier of technology solutions for the energy industry. The company has a diversified product portfolio, specialty service capabilities and proprietary technological expertise. Other positives for FMC Technologies are a robust backlog position, growing international operations and strong execution skills.

However, FMC Technologies' earnings and revenues continue to suffer from the weakness in the North American land market due to low crude prices.

Currently, FMC Technologies carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader energy sector are Tesoro Corporation TSO and Alon USA Partners, LP ALDW . Both these stocks sport a Zacks Rank #1 (Strong Buy).

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FMC TECH INC (FTI): Free Stock Analysis Report

TESORO CORP (TSO): Free Stock Analysis Report

STATOIL ASA-ADR (STO): Free Stock Analysis Report

ALON USA PTNRS (ALDW): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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