FMC, Anadarko Sign Service Deal - Analyst Blog
January 17 2012 - 10:45AM
Zacks
Oil drilling equipment maker FMC Technologies
Inc. (FTI) inked a deal with Anadarko Petroleum
Corporation (APC), whereby it will render subsea systems
and life-of-field services to the latter. None of the parties
disclosed the financial terms of the agreement.
The Woodlands-based exploration and production company Anadarko
will utilize the services for the development of the Lucius project
in the Gulf of Mexico. The field is located in water depth of
approximately 7,100 feet and about 275 miles to the southeast of
Galveston in Keathley Canyon Block 875.
Discovered in 2009, Lucius field is operated by Anadarko with a
35% interest. The co-partners in the project are Plains
Exploration & Production Company (PXP) (23.3%),
Exxon Mobil Corporation (XOM) (15%), Apache
Deepwater LLC, a subsidiary of Apache Corporation
(APA) (11.7%), Petrobras (PBR) (9.6%) and Eni
Petroleum, a unit of Eni SpA (E) (5.4%).
Per the agreement, FMC Technologies will supply five subsea
production trees and two manifolds. Equipment will be supplied from
FMC’s Houston operations and deliveries are slated to start in the
fourth quarter of 2012.
FMC Technologies remains upbeat regarding this collaboration
with Anadarko and believes that the company will be able to extend
its support to the various oil and gas fields with its highly
advanced equipment and services.
Houston, Texas-based FMC Technologies is a leading manufacturer
and supplier of technology solutions for the energy industry and
operates 25 manufacturing facilities in 15 countries.
FMC Technologies exhibits a diversified product portfolio,
specialty service capabilities and proprietary technological
expertise. Other positives for the company include a strong backlog
position, expanding international operations and a favorable
outlook for subsea activity levels.
However, the uncertain commodity price outlook and a soft global
economy continue to weigh on the company. As such, we expect FMC
Technologies’ growth potential to be restrained and see limited
upside from the current level. Hence, we maintain a long-term
Neutral recommendation on the stock.
APACHE CORP (APA): Free Stock Analysis Report
ANADARKO PETROL (APC): Free Stock Analysis Report
ENI SPA-ADR (E): Free Stock Analysis Report
FMC TECH INC (FTI): Free Stock Analysis Report
PETROBRAS-ADR C (PBR): Free Stock Analysis Report
PLAINS EXPL&PRD (PXP): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
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