FMC Technologies scores $180 million contract for project offshore Australia

Houston-based FMC Technologies landed an $180 million contract to design, manufacture and supply subsea production systems for a project offshore Western Australia, the company announced on Tuesday.

Under the arrangement with Australian oil and gas producer Woodside Petroleum, FMC Technologies will provide the equipment for the $2 billion Greater Western Flank Phase 2 project.

Interest has waned in massive offshore projects since oil prices collapsed in the past year and a half, but projects that were already in development, or that had already received financing, continue to chug forward despite the tougher market conditions.

The contract, which was expected, includes about nine subsea trees, with deliveries starting this year and extending through 2018, FMC Technologies said. The project, the fourth major gas development for Australia’s massive North West Shelf development in the past seven years, is expected to produce 1.6 million cubic feet of natural gas.

The project includes six fields and nearly 22 miles of pipeline connected to an existing platform. It’s expected to begin production from five wells in the second half of 2019, with the remaining three wells coming on line in 2020.

“Our continued collaboration on the North West Shelf Project further solidifies the 20-year relationship between FMC Technologies and Woodside,” Tore Halvorsen, senior vice president of subsea technologies said in a statement. “This development assists with the timely and efficient commercialization of the project’s gas reserves.”

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