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Wednesday, July 6, 2005
PRESS RELEASE–HOUSTON, July– FMC Technologies (NYSE: FTI – News) announced today that its Subsea Riserless Light Well Intervention (RLWI) alliance party, Island Offshore Management, has signed an agreement with Statoil ASA (NYSE: STO – News) under which FMC Technologies has agreed to provide Subsea RLWI equipment and services for Statoil’s subsea installations. Statoil operates 245 subsea wells, the majority of which employ FMC Technologies equipment, including approximately 150 horizontal subsea trees.
The initial term of FMC Technologies’ contract is six years, beginning April 2006, and has a multi-year value to FMC Technologies of at least $46 million in revenue. This revenue projection is based on the guaranteed minimum usage of 150 days of Subsea RLWI activities per year, as specified in the contract. The contract also has an option for three additional years beyond the initial term.
Subsea RLWI technology, developed by FMC Technologies in conjunction with Statoil, has been employed successfully over the past two and one-half years in various projects in the Norwegian and United Kingdom sectors of the North Sea. Based on this experience, Statoil anticipates realizing considerable cost savings by employing Subsea RLWI in its multi-year campaign, rather than using conventional intervention methods.
"Cost-effective use of Subsea RLWI will yield major savings, making it an important tool for reaching our production and improved recovery targets on subsea fields," said Terje Overvik, Statoil’s Executive Vice President – Exploration and Production, in Norway.
"We are pleased that our innovative Subsea RLWI technology has been chosen to support Statoil’s multi-year well service campaign," said Peter D. Kinnear, Executive Vice President, FMC Technologies. "This choice reflects our success in developing technology that is responsive to our customers’ needs and helps them meet their subsea challenges."
FMC Technologies, Inc. (http://www.fmctechnologies.com ) is a global leader providing mission-critical technology solutions for the energy, food processing and air transportation industries. FMC Technologies designs, manufactures and services technologically sophisticated systems and products for its customers through its Energy Systems (comprising Energy Production Systems and Energy Processing Systems), FoodTech and Airport Systems businesses. FMC Technologies employs approximately 9,000 people and operates 31 manufacturing facilities in 16 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. Forward- looking statements are qualified in their entirety by the cautionary language set forth in the Company’s filings with the Securities and Exchange Commission, including the risks and uncertainties described in the Cautionary Note Regarding Forward-Looking Statements in Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2005. The Company cautions shareholders and prospective investors that actual results may differ materially from those indicated by the forward-looking statements.
Source: FMC Technologies, Inc.
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