Oil drilling equipment maker FMC Technologies Inc. (FTI - Free Report) announced the receipt of a $340 million contract from London-based oil exploratory firm Tullow Oil plc to supply subsea technology solutions for its oil and gas projects offshore Ghana.
FMC Technologies, whose presence in Ghana began in 2008, said that the deal includes the development of subsea trees, manifolds, tooling, related subsea control systems and systems integration.
The FMC Technologies-supplied subsea production systems will aid the fast track development of the Tweneboa-Enyenra-Ntomme Development (TEN Project), located in the deepwater Tano block at water depths ranging between 1,000–1,800 meters.
FMC Technologies –– which recently finished the assembly and testing of the first subsea tress manufactured exclusively in Ghana at its facility in the port city of Takoradi – expects the latest agreement to further augment its strong presence in the west African country and play an important role in the development of systems that can effectively produce hydrocarbons from Tullow Ghana’s existing offshore projects.
Incorporated in 2000, Houston, Texas-based FMC Technologies is a leading manufacturer and supplier of technology solutions for the energy industry. The company, which operates 30 manufacturing facilities in 16 countries, is engaged in the designing, producing and servicing technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead production systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry.
FMC Technologies – which counts Cameron International Corp. as its competitor – currently retains a Zacks Rank #3 (Hold), implying that it is expected perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, one can look at Whiting Petroleum Corp. (WLL - Free Report) and Swift Energy Co. as good buying opportunities. These domestic upstream energy operators – sporting a Zacks Rank #1 (Strong Buy) – have solid secular growth stories with potential to rise significantly from current levels.