Petrobras Awards FMC Technologies $400 Million Subsea Tree Frame Agreement

Thursday, Feb 04, 2010

FMC Technologies, Inc. (NYSE: FTI) announced today that it has signed a four-year subsea tree frame agreement with Petrobras (NYSE: PBR, PBRA), Brazil's national oil company. The award is expected to result in approximately $400 million in revenue to FMC Technologies if all of the subsea equipment included in the agreement is ordered. The agreement provides assurance that at least 70 percent of the contractual value will be ordered by Petrobras during the agreement's four-year call-off period.

FMC's scope of supply includes the manufacture of up to 107 subsea trees and related tools designed for use offshore Brazil in water depths of 6,500 feet (2,000 meters). All systems and equipment will be engineered and manufactured at FMC's facility in Rio De Janeiro, Brazil. Deliveries are scheduled to commence in 2012.

"FMC values its long and productive relationship with Petrobras," said John Gremp, Executive Vice President of FMC Technologies. "Prior to this agreement, Petrobras had awarded more than 300 subsea trees to our operations in Brazil, and we are pleased to continue supporting their ongoing deepwater developments."

FMC Technologies, Inc. (NYSE:FTI) is a leading global provider of technology solutions for the energy industry. The Company has approximately 10,400 employees and operates 19 manufacturing facilities in 14 countries. FMC Technologies designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry. For more information visit www.fmctechnologies.com.

 

Source: FMC Technologies