FMC Wins TOTAL Subsea Deal

Oil drilling equipment maker FMC Technologies Inc. (FTI: 56.89 0.00 0.00%) announced the receipt of a $65 million contract from French oil major Total SA (TOT: 55.96 0.00 0.00%). The deal calls for FMC Technologies to design and provide subsea production systems to Total-operated Block 17 development, located offshore Angola. 

FMC Technologies said that the contract includes the manufacture of subsea trees, controls and associated equipment. The company expects delivery to begin in the first quarter of 2011. The order is part of FMC Technologies’ strong and longstanding relationship with Total and will be supported by its facilities at Dunfermline, Scotland; Kongsberg, Norway; and Luanda, Angola.
 
Total E&P Angola (a wholly owned subsidiary of Total) holds a 40% operated interest in the Block 17 development, deep offshore Angola. FMC Technologies has supported a number of projects in Total’s Block 17 development (including Girassol, Rosa and Pazflor). 

FMC Technologies recently posted better-than-expected fourth quarter results despite pricing pressure and reduced order flow. A healthy backlog of $2.5 billion, coupled with growing international operations and the still favorable outlook for deepwater offshore markets should help the company weather the current downturn better than most of its peers.
 
Incorporated in 2000, Houston, Texas-based FMC Technologies is a leading manufacturer and supplier of technology solutions for the energy industry. The company, which operates 19 manufacturing facilities in 14 countries, is engaged in the 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.