Cameron benefits from rising subsea demand, signs $200M contract with ConocoPhillips

By Oil & Gas Financial Journal staff 

Oil and gas services provider Cameron International has signed a contract with ConocoPhillips valued at nearly $200 million.

The company will provide equipment and services on two new platforms in the Great Ekofisk Area Development offshore Norway. The multi-year agreement calls for Cameron to deliver surface wellheads and surface production trees for multiple wells throughout the contract’s term. Cameron will also provide aftermarket services to ConocoPhillips for the lifetime of the field.

A March 8 flash note from Jefferies & Co. Inc. says Cameron should benefit from “a confluence of rising subsea demand, higher demand for drilling equipment and continued increases in demand for its short cycle products,” and believes the company’s shares remain attractively valued.

The agreement follows another large deal signed on March 1 in which Cameron agreed to provide subsea production systems to BP. 

According to Jefferies, the end of the fourth-quarter 2010 saw Cameron’s backlog value near $4.8 billion.



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