Acergy Wins Nigeria Subsea Deal

Oilfield service provider Acergy S.A. (ACGY - Analyst Report)  yesterday announced the receipt of a $500 million contract from the Nigerian subsidiary of Chevron Corp. (CVX - Analyst Report). As per the deal, Acergy will support Chevron Nigeria Ltd’s gas development program in Escravos, offshore Nigeria, in water depths of up to 40 meters. 
 
The contract, encompassing engineering, procurement, fabrication, transportation, installation, tie-in and commissioning, calls for Acergy to obtain and install over 130 kilometers of pipelines, to fabricate and install 15 risers and 3 subsea tie-ins, and to install over 40 crossings. Acergy is due to commence engineering work immediately, while offshore installation is likely to begin during the fourth quarter of 2010.
 
The London-based seabed-to-surface service provider described the award as recognition of its strong local engineering and project management skills in Nigeria. Acergy further said that the contract award will re-enforce its strong presence in the upgrade and development of conventional oil and gas fields in West Africa.
 
Acergy is a leading oilfield contractor engaged in the designing, procurement, building, installation and servicing of a range of offshore surface and sub-surface equipment for the oil and gas industry.
 
We currently rate Acergy as Neutral.