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Leading manufacturer and supplier of technology solutions, FMC Technologies, Inc. (FTI - Analyst Report), inked a deal with the Brazilian energy giant Petrobras S.A. (PBR - Analyst Report), to supply subsea manifolds for pre-salt fields of the latter, offshore Brazil.

Initially, 11 manifolds, tools and controls are to be supplied with an option to increase the order up to 16 manifolds. The contract would fetch revenues of approximately $650 million for FMC Tech if the entire order for the 16 subsea manifolds is processed.

Expected to be delivered in 2015, the equipment would be designed and built in Brazil. This marks the Houston, Texas-based company’s fourth venture with Petrobras for the pre-salt fields. Earlier this year, FMC Tech had supplied three identical subsea manifolds to Petrobras.

FMC Tech’s other contracts with Petrobras earlier this year includes supply of 3 subsea boosting stations for the Parque das Baleias Development and the supply of subsea trees for the pre-salt basin.

Management believes that to provide better projects and cater to the needs of Petrobras, it has made significant contribution to its operations in Brazil.

FMC Tech is well-positioned in the subsea systems market. It is the company’s largest and fastest-growing business, accounting for about two-thirds of its revenues. Apart from the Petrobras, FMC Tech’s recent order bank includes contracts from other big names such as Statoil ASA (STO - Analyst Report) and Total SA (TOT - Analyst Report) as well.

However, the company relies on its ability to develop and acquire essential products and technologies that drive its operational performance and growth. If its technologies and/or products become obsolete, or cannot be brought to the market in a timely and competitive manner, the company might face severe operational and financial dilemmas.

FMC Technologies currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next 1 to 3 months.

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