Leading manufacturer and supplier of technology solutions, FMC Technologies Inc. (FTI) has entered into a subsea systems deal with Europe’s largest oil company, Royal Dutch Shell plc (RDS.A).
Per the contract, FMC Technologies will purvey seven subsea trees, two manifolds, related subsea control systems, tie-in connection systems, subsea distribution hardware and connected tooling and services for developing the Parque das Conchas (BC-10) Phase 3 project located offshore Brazil.
FMC Technologies discloses that BC-10 Phase 3 happens to be the original block’s second expansion, which is based at a water depth of roughly 5,000 to 6,500 feet.
FMC Technologies also received orders from Royal Dutch Shell in 2006 and 2010 for the development of Phase 1 and Phase 2 of the BC-10 project. Following the award, FMC Technologies provided Royal Dutch Shell with subsea systems, separation and boosting modules.
Moreover, FMC Technologies supplied ground-breaking subsea gas and liquid separation and boosting system during the first phase of the BC-10 project. Additionally, the fields that were being developed during the Phase 1 came online in Jul 2009.
The current award represents FMC Technologies’ continuing support to Royal Dutch Shell for the development of the projects, offshore Brazil.
Particularly well positioned in the subsea systems market, FMC Technologies has successfully completed several projects with other big names such as Statoil ASA (STO) and Petroleo Brasileiro S.A. or Petrobras (PBR).
However, FMC Technologies relies on its ability to develop and acquire essential products and technologies that drive its operational performance and growth. If its technologies and/or products become obsolete, or cannot be brought to the market in a timely and competitive manner, the company might face severe operational and financial dilemmas.
Houston, Texas-based FMC Technologies currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next 1 to 3 months.