Acergy Scores in Angola

Yesterday, Acergy (ACGY - Analyst Report) said it won a contract worth about $110 million from Total (TOT - Analyst Report) E&P Angola and BP Angola (Block 18) B.V. The deal involves the installation of over 70 kilometers of 24-inch pipeline from Block 2, together with related jumpers, PLET and tie-ins to the near-shore/onshore pipeline in water depths up to 40 meters.

While the engineering work will begin immediately, offshore installation is scheduled to start in the second quarter of 2010. The company will use Acergy Hawk and Acergy Legend for construction support and rigid pipelay asset Acergy Polaris for this contract.

The contract reflects Acergy’s strong presence in Angola. In 2008, the company won a $250 million deal from Angola LNG Ltd. for the development of a pipeline network. Eralier in 2007, it had successfully completed the Greater Plutonio project in deepwater offshore Angola.

We believe that Acergy remains well positioned to capitalize on the positive outlook for subsea engineering and demand for construction services in the coming years. The company’s strong backlog position will offer long-term earnings and cash flow visibility.