FMC Technologies Signs Subsea Agreement Extension with Stato

FMC Technologies' FMC Kongsberg Subsea AS unit has signed an extension of its existing subsea service agreement with Statoil to provide technical services and subsea equipment for an additional two years, with an option for two more years beyond that.

FMC Technologies estimates that its annual revenue for 2004 under the current agreement will approximate $70 million. The amount of revenue realized under the extended agreement will depend on the amount and timing of project orders received under the agreement.

The agreement comprises technical services and equipment related to completion, workover, installation, maintenance and other activities associated with subsea field development. The agreement also includes provision of additional equipment for Statoil-operated fields previously supplied by FMC Kongsberg Subsea.

"We are pleased that Statoil has extended the subsea service agreement," said Peter D. Kinnear, Executive Vice President - FMC Technologies. "This reflects our extensive experience as a subsea solutions provider in the North Sea, as well as the strength of our relationship with Statoil."