FMC Technologies, Inc. (NYSE: FTI) signed an agreement with China National Offshore Oil Corporation (CNOOC) (NYSE:CEO) for the manufacture and supply of subsea production equipment for the Liuhua 4-1 development project. The award has a value of approximately $85 million in revenue to FMC Technologies.
The Liuhua 4-1 development project will contain eight subsea trees and tie-back to the existing Liuhua 11-1 field. It is located in water depths between 850-1,000 feet (260-300 meters) in the South China Sea, approximately 130 miles (215 kilometers) from Hong Kong and 150 miles (240 kilometers) from Shenzhen. Deliveries are scheduled to commence in the fourth quarter of 2011.
"The Liuhua 11-1 development is the largest oil field in the South China Sea, and FMC has supported the project since 1994," said Tore Halvorsen, FMC's Senior Vice President of Global Subsea Production Systems. "We are pleased to continue our role with this field, leveraging our strengths in subsea technologies and our many successes with tie-back projects."