FMC Awarded Two Subsea Contracts

FMC Technologies, Inc. has been awarded a frame contract with Talisman Energy (UK) Limited for the provision of subsea trees, wellheads and associated equipment in the North Sea and has signed an agreement with Soekor E and P (Pty) Ltd to provide subsea equipment and technology solutions for the Sable Development project offshore South Africa.

The Talisman frame agreement is for a period of seven years, with an option to extend for an additional three years, and will potentially cover the supply of more than 40 subsea wellhead and tree systems. Initial deliveries under the agreement are scheduled to commence in 2002.

Soekor E and P's Sable Development project is located 93 miles southwest of Mossel Bay in the Western Cape of South Africa, in water depth of 328 feet. The subsea completion solution will be managed and manufactured by FMC Energy Systems' Dunfermline, Scotland facility.

The Sable solution is planned to consist of six subsea trees, comprising four producers, a gas injector and a water injector. The agreement includes an option for two additional production trees. Equipment deliveries are scheduled to begin in December 2001 and culminate in the first quarter 2002.

"The frame agreement with Talisman represents our largest single contract for the supply of subsea drilling and completion equipment to the UK sector of the North Sea," said Peter D. Kinnear, Vice President - FMC Energy Systems. "It also is expected to allow both companies to realize the full potential of a long-term partnership/frame agreement. The Soekor E and P solution is based on our extensive experience as a subsea production solutions provider offshore South Africa. It exemplifies one portion of the wide spectrum of subsea challenges that our proven experience and equipment have helped customers meet, effectively and economically."