FMC Technologies, Inc. (NYSE: FTI) signed a three-year frame agreement with ConocoPhillips Indonesia Inc. for the manufacture and supply of subsea production equipment. The contract includes an immediate $57 million call-off and is expected to result in approximately $96 million in total revenue to FMC Technologies if all of the subsea equipment included in the agreement is ordered.
The equipment will support three of ConocoPhillips Indonesia's offshore fields, which are located in approximately 300 feet (90 meters) of water offshore Indonesia in the Natuna Sea.
FMC's scope of supply includes the manufacture of up to 12 subsea production trees, wellheads, control systems and associated offshore tooling and services. The equipment will be engineered and manufactured at FMC's facilities in Indonesia, Singapore and Malaysia, with deliveries scheduled to commence in 2011.
"This award represents our first project with ConocoPhillips in Indonesia," said Tore Halvorsen, FMC's Senior Vice President of Global Subsea Production Systems. "It is a significant achievement for our Asia-Pacific facilities, and we are pleased to support ConocoPhillips Indonesia with this development."