FMC Technologies, Inc. (NYSE:FTI) announced today that it has received approval to supply an additional 11 subsea trees and associated structures and control systems for the Agbami Project, offshore Nigeria. The contract with Star Deep Water Petroleum Limited, an affiliate of Chevron Corporation (NYSE:CVX), has a value of approximately $54 million in revenue to FMC Technologies.
The manufacture of these trees and systems is under an existing contract to supply subsea equipment awarded to FMC in 2005. Deliveries will be completed over a multi-year period and are scheduled to commence in the third quarter of 2008.
“We are pleased to receive the approval to supply these additional trees,” said John Gremp, Executive Vice President, FMC Technologies. “Our experience with the Agbami Project combined with our growing local presence in Nigeria should contribute to the successful execution of this contract.”
The Agbami Field covers approximately 45,000 acres across OMLs 127 and 128, in water depths of approximately 4,800 feet (1,500 meters). The field is approximately 70 miles (113 km) offshore Nigeria, in the central Niger Delta Area. The Agbami Field is operated by Star Deep Water Petroleum Limited on behalf of its partners, NNPC, Famfa Oil Limited, Statoil Nigeria Limited, Petroleo Brasileiro Nigeria Limited and Texaco Nigeria Outer Shelf Inc. (a Chevron affiliate).
FMC Technologies, Inc. (NYSE:FTI) is a leading global provider of technology solutions for the energy industry and other industrial markets. The Company designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry. The Company also produces food processing equipment for the food industry and specialized equipment to service the aviation industry. Twice named as the Most Admired Oil and Gas, Equipment Service Company by FORTUNE magazine, FMC Technologies employs approximately 11,000 people and operates 33 manufacturing facilities in 19 countries.
This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond the Company's ability to control. These risks and uncertainties are described under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2006 and may be modified in subsequent quarterly reports filed by the Company with the Securities and Exchange Commission that may be accessed on the Company’s website. The Company cautions shareholders and prospective investors that actual results may differ materially from those indicated by the forward-looking statements.
