Back to top

Analyst Blog

Schlumberger Limited’s (SLB - Analyst Report) subsidiary Framo Engineering entered into a $200 million contract with Total E&P Angola, wholly-owned subsidiary of Total SA (TOT - Analyst Report).

Per the deal, Framo Engineering will deliver subsea multiphase pumping system for the Girassol Resources Initiatives (GirRI) Project. The pump system will be installed in Block 17, offshore Angola at a water depth of 4,429 feet. It will augment the rates for two production flow loops.

The agreement also includes two subsea pump modules and a full system of topside power and control. The multiphase pump system incorporates the latest helico-axial technology. It can record differential pressure of up to 120 bar.

This is Schlumberger’s third contract with Total E&P Angola for its Block 17 asset.

Assembling and testing of the system will be done at Framo Engineering’s advanced test facility at Horsoy, Norway. It is expected that the pump system will be delivered in summer of 2014.

Earlier in August, Framo Engineering won a $100 million contract from A/S Norske Shell — subsidiary of Royal Dutch Shell plc (RDS.A - Analyst Report) for supply of booster pump system for its Draugen Field in Norway.

Houston, Texas-based Schlumberger Limited is a leading oilfield services company, providing technology, project management and information services to the global oil and gas industry.

We believe Schlumberger will benefit in the next several quarters from its strong product and services portfolio. We also believe the company is favorably positioned to benefit from current trends in oilfield services, given improving activity levels and greater need for stimulation and completion of services in North America.

However, seasonal and adverse weather conditions, such as hurricanes in the Gulf of Mexico and extreme winter conditions in the U.S., Canada, Russia, and the North Sea, may adversely affect demand for the company’s services and operations.

Hence, we maintain our long term Neutral recommendation on the stock.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%