FMC Technologies Wins Subsea Contract from Wintershall - Analyst Blog

The Norwegian unit of oil drilling equipment manufacturer, FMC Technologies Inc. (FTI) has received a subsea contract from Germany's largest oil and gas producer, Wintershall for development of the Maria field, located offshore Norway. The deal is valued at NOK1.8 billion or US$280 million.

FMC Technologies has been awarded this contract after a proper selection process. Per the agreement, both the parties will develop the field by building a comprehensive subsea production system (SPS). The Maria field will be connected to existing producing platforms of Kristin, Asgard and Heidrun, using subsea tie-back.

In addition to delivery of the SPS, the contract with FMC Technologies includes a SPS Frame Agreement. This agreement pertains to the supply of SPS for future contracts for development of other projects.

The Maria field development is the first subsea development project of Wintershall in Norway. Located about 200 kilometers from the Trondheim coast, the Maria discovery is likely to yield about 130 million barrels of oil and 2 billion standard cubic meters of gas.

Houston, TX-based FMC Technologies is a leading manufacturer and supplier of technology solutions for the energy industry. The company is engaged in designing, producing and servicing technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead production systems, high pressure fluid control equipment, measurement solutions and marine loading systems to the oil and gas industry.

Currently, FMC Technologies carries a Zacks Rank #3 (Hold). Meanwhile, one could consider better-ranked players from the same industry like Superior Energy Services, Inc. (SPN), McDermott International Inc. (MDR) and National Oilwell Varco, Inc. (NOV). While Superior Energy Services sports a Zacks Rank #1 (Strong Buy), McDermott and National Oilwell Varco hold a Zacks Rank #2 (Buy).

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