FMC Supplies Separation System for Petrobras

Friday, August 21, 2009

FMC Technologies, Inc. (NYSE: FTI) announced that it has been awarded a contract by Petrobras (NYSE: PBR) (NYSE:PBRA) to supply a subsea separation system for the Marlim field, located in the Campos Basin, offshore Brazil. The contract is valued at approximately $90m in revenue to FMC Technologies.

FMC's scope of supply consists of a subsea separation and pumping system. The subsea separation module will separate heavy oil, gas, sand and water at a water depth of approximately 2,950 feet (900 meters). The system will apply FMC's separation and sand management technologies, utilizing a novel pipe separator design, licensed and developed in cooperation with StatoilHydro. It is the first deepwater deployment of subsea separation technologies in a mature field, and the first separation of heavy oil and water in a subsea environment in the world. It will also be the first separation system to include subsea reinjection of water into a reservoir to boost production.

The equipment will be jointly engineered between FMC's operations in Brazil, Norway and The Netherlands. Final manufacturing and integration activities will be performed at the company's Rio de Janeiro facility, with deliveries projected to begin in 2011.

"Marlim is the fifth field in the world that will utilize FMC's subsea separation technologies," said Tore Halvorsen, FMC's Senior Vice President of Global Subsea Production Systems. "The project will enable a broader application of our separation technologies for future subsea processing opportunities. We look forward to supporting Petrobras in the development of this exciting project."

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