FMC Technologies, Inc. (NYSE: FTI) signed an agreement with Statoil (NYSE: STO) for the manufacture and supply of subsea production equipment to support the Katla development. The award has a value of approximately $75 million in revenue to FMC Technologies.
Katla is a fast-track offshore oil and gas field located in water depths of approximately 310 feet (95 meters) in the Norwegian sector of the North Sea. It is one of three additional options included in the previously announced Pan Pandora project awarded to FMC Technologies in June. As with Pan Pandora, all equipment for Katla will be based on a standard subsea solution designed by FMC for Statoil.
FMC's scope of supply for Katla includes the manufacture of three subsea trees, one manifold and associated subsea and topside control systems. The equipment will be manufactured and assembled at FMC's facilities in Dunfermline, Scotland and Kongsberg, Norway. Deliveries are scheduled to commence in the second quarter of 2011.
"Statoil's fast-track strategy aims to reduce the time from discovery to production," said Tore Halvorsen, FMC's Senior Vice President of Global Subsea Production Systems.