FMC Signs Revised Deal for Algerian Oil Loading Project

FMC Technologies has signed a revised contract with Sonatrach-TRC, the Algerian Oil and Gas Company, for Sonatrach's offshore oil loading project in Algeria, reducing the scope of FMC Technologies' work from $240 million to $224 million.

The revised contract terms eliminate certain efforts associated with the project's onshore pipeline construction and extend the completion date to May 2005. This revision removes uncertainty from the contract's scope and schedule and from the interpretation of contract terms. It does not, however, significantly improve profit opportunities. At this time, FMC Technologies expects a breakeven profit level on this contract.

"We are pleased to have come to an agreement with Sonatrach that resolves what we are responsible for and when it is scheduled to be completed," said Peter D. Kinnear, Vice President - FMC Energy Systems. "This is a big step forward in resolving various issues with Sonatrach and in ultimately providing Algeria with increased export capabilities. We look forward to completing this project in 2005."