FMC wins $125M contract from Petrobras adding to stack of recent subsea deals

By Oil & Gas Financial Journal staff

On March 2, FMC Technologies (NYSE: FTI) received a $125 million order from Brazil’s national oil company, Petrobras (NYSE: PBR, PBRA), to supply equipment for use in their oil and gas developments offshore Brazil.

The order, for 32 subsea trees, represents the remaining equipment under a 107-tree frame agreement from roughly this time last year. Deliveries for the original 75 trees start next year and these remaining 32 begin in 2013. The 32 trees are worth $125 million, or the remaining 31% of the total $400 million award announced in February of 2010.

The award was “anticipated following Cameron’s mid-Jan. announcement that PBR [Petrobras] ordered the remaining 27 trees ($74 million) under its original 138-tree frame agreement won Sep. 2009,” noted Global Hunter Securities in a research note dated March 3, so the news isn’t anticipated to move company’s stock.

This announcement comes on the heels of a five-year global frame agreement signed with BP to provide subsea production systems and life-of-field services for worldwide subsea development projects a day earlier.

In January, the energy industry technology solutions provider signed three subsea deals in a week worth roughly US$219 million.

Jan. 24 marked the agreement between FMC and China’s CNOOC to supply eight subsea trees for the Liuhua 4-1 development and tie-back to the existing Liuhua 11-1 field.

On January 19, the company signed a $54 million contract for Statoil's Gygrid Project in the Norwegian sector of the North Sea, and one day prior, the company signed an $80 million agreement with Total E&P Angola for the manufacture and supply of subsea production equipment to support the  Girassol Resource Initiative (GirRI) project located offshore Angola in the Gulf of Guinea.

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