FMC Technologies, Inc. (NYSE:FTI) has signed an agreement with French major Total (NYSE:TOT) for the manufacture and supply of subsea production equipment for the deepwater CLOV development project offshore Angola. The award has a value of approximately $520 million in revenue to FMC Technologies.
FMC's scope of supply includes the manufacture of 36 subsea trees, wellheads and controls. The Company will also supply eight manifolds, two workover systems and associated tooling and equipment. Deliveries are scheduled to commence in the first quarter of 2012.
The deepwater CLOV development project consists of the Cravo, Lirio, Orquidea and Violeta discoveries, located in approximately 4,500 feet (1,370 meters) of water in Block 17 offshore Angola. Sociedade Nacional de Combustiveis de Angola (Sonangol) is the Block 17 concessionaire. In addition to Total E&P Angola, other partners include Statoil Angola Block 17 A.S., Esso Exploration Angola (Block 17) Ltd., BP Exploration (Angola) Ltd. and Norsk Hydro Dezassete A.S.
"FMC has a strong history and experience in supporting Block 17 projects, including the Pazflor, Rosa and Girassol fields," said Tore Halvorsen, FMC's Senior Vice President of Global Subsea Production Systems.
FMC continues to develop local execution capability in the region and will conduct the following activities in Angola: fabrication, assembly and testing of 36 wellhead systems and 19 subsea trees; manufacture of 7 complete manifold systems; critical equipment testing, offshore installation support and equipment refurbishment; additional recruiting and training of onshore and offshore personnel; and investment in local facilities.