FMC Technologies Wins Multi-Year Contract from Statoil
FMC Technologies' Subsea Riserless Light Well Intervention (RLWI) alliance party, Island Offshore Management, has signed an agreement with Statoil 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."
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