FMC Awarded Contract for Albacora Leste Offshore Brazil

FMC Technologies, Inc. announced that its FMC Energy Systems business has been awarded a contract from Petrobras to supply a subsea solution for its Albacora Leste field offshore Brazil. FMC Energy Systems also announced that it intends to expand its major manufacturing facilities in Rio de Janeiro and Macae, Brazil.

The Petrobras contract, valued at approximately $18 million, calls for the supply of three subsea water injection manifolds, two subsea trees and associated control systems. Delivery of the equipment is scheduled for early 2003.

When delivery is completed, FMC Energy Systems, through its FMC CBV Subsea business in Brazil, will have delivered a total of 15 subsea manifolds to Petrobras. This order follows Petrobras' earlier contract award to FMC CBV Subsea for its Marimba field manifold and trees.

"This contract award from Petrobras reaffirms FMC Energy Systems' deepwater expertise, technology leadership and commitment to customer service," said Peter D. Kinnear, Vice President - FMC Energy Systems. "It also reflects our long-standing relationship with Petrobras and that company's satisfaction with the subsea solutions we provide."

FMC Energy Systems also intends to expand its Brazilian facilities to meet the needs of customers who have placed a series of orders for subsea solutions this year. "This projected ramp-up in business reflects both the increased deepwater activity offshore Brazil, as well as the strength of our customer alliances in the area," Kinnear said.

The planned Rio de Janeiro expansion includes an anticipated doubling of the size of the covered subsea manifold assembly and test areas, scheduled for completion in March 2002. FMC Energy Systems, through its FMC CBV Subsea business, plans to assemble and test Petrobras' Marimba field and recently announced Albacora Leste field manifolds in the expanded facility, along with five subsea manifolds for Enterprise Oil's project in the Bijupira and Salema fields.

The planned Macae facility expansion, which is expected to more than double FMC CBV Subsea's capacity to service subsea trees, is scheduled for completion in early 2002. The expansion also is intended to include a new test pit, increased crane capacity and additional machine tools. The facility, opened in 1982, was the first service base in Macae to support operations in the Campos basin, and it is still the only ISO-certified facility located there.