ABB Secures $500 Million Contract for North Sea Oil Field Development

Strategic Insights -

ABB Asea Brown Boveri Ltd. has announced a joint venture to develop the Captain oil field in the North Sea, with a contract valued at over $500 million. ABB's portion of the contract totals approximately $170 million. The field, located in the Inner Moray Firth, is expected to produce 60,000 barrels of oil per day by the end of 1996.

Key Takeaways:

  • The joint venture between ABB Global Engineering Ltd., Stena Offshore Ltd., UIE Scotland Ltd., and Astano S.A. has secured a contract from Texaco to develop the Captain oil field in the North Sea.
  • The total value of the contract is in excess of $500 million, with ABB's portion valued at approximately $170 million.
  • The Captain field is expected to produce 60,000 barrels of oil per day by the end of 1996.
  • ABB's oil, gas, and petrochemical businesses, including ABB Global Engineering, ABB Offshore Technology, ABB Lummus Crest, and ABB Vetco Gray, will be involved in the project.
  • ABB Lummus Crest, a worldwide engineering and construction services firm, has U.S. offices in Houston, Texas, and Bloomfield, New Jersey.
  • ABB Vetco Gray, a provider of oilfield drilling and production equipment, is also located in Houston.

Statistics:

  • Total contract value: over $500 million
  • ABB's portion of the contract: approximately $170 million
  • Expected oil production: 60,000 barrels per day by the end of 1996
  • ABB's revenues in 1993: approximately $5.6 billion (for ABB Inc. in the United States)

Sources:

  • BUSINESS WIRE, December 22, 1994.