TechnipFMC Awarded iEPCI™ Contract for bp’s Greenfield 20K Development in the Paleogene

Rhea-AI Summary

TechnipFMC (NYSE: FTI) has secured an integrated Engineering, Procurement, Construction, and Installation (iEPCI™) contract from bp for the Kaskida development in the Gulf of Mexico. The contract, valued between $250 million and $500 million, covers:

• Design and manufacture of subsea production systems, including 20,000 psi (20K) standardized subsea trees and manifolds
• Design, manufacture, and installation of subsea umbilicals, risers, and flowlines

This award follows an integrated Front End Engineering and Design (iFEED®) study by TechnipFMC. The company's high-pressure solutions are important for unlocking economically attractive opportunities in the Paleogene. The contract was included in inbound orders for the third quarter of 2024.

Positive

• Secured a substantial contract valued between $250 million and $500 million
• Expanding collaboration with bp through the Kaskida development project
• Leveraging innovative high-pressure solutions for economically attractive opportunities
• Demonstrating technological and integration capabilities through early engagement

Negative

• None.

Insights

Subsea Engineering Expert

This contract award for bp's Kaskida development is a significant win for TechnipFMC, showcasing their expertise in high-pressure subsea solutions. The 20,000 psi (20K) standardized subsea trees and manifolds are cutting-edge technology, essential for unlocking challenging deepwater resources in the Gulf of Mexico's Paleogene formation.

The integrated Engineering, Procurement, Construction and Installation (iEPCI™) approach demonstrates TechnipFMC's full-scope capabilities, potentially leading to cost savings and improved project efficiency for bp. The contract's value, estimated between $250 million and $500 million, represents a substantial boost to TechnipFMC's order backlog.

This project's success could position TechnipFMC for future high-pressure subsea contracts, as the industry continues to explore and develop deepwater resources. The long-term implications for TechnipFMC's market position in the subsea sector are positive, potentially driving growth in their subsea technologies segment.

Oil & Gas Industry Analyst

The Kaskida development is a strategic move for bp, indicating their continued commitment to deepwater Gulf of Mexico projects despite the industry's focus on energy transition. This greenfield project suggests bp sees long-term value in these challenging but potentially high-yield resources.

For the broader oil and gas industry, the advancement of 20K technology is noteworthy. It opens up new possibilities for exploiting ultra-high-pressure reservoirs that were previously uneconomical or technically unfeasible. This could lead to a resurgence of interest in similar deepwater prospects globally.

The contract's timing, included in Q3 2024 inbound orders, hints at a potential uptick in offshore project sanctions. This could signal improving market conditions and increased capital expenditure in the subsea sector, benefiting not just TechnipFMC but the entire supply chain.

NEWCASTLE & HOUSTON--(BUSINESS WIRE)-- TechnipFMC (NYSE: FTI) has been awarded an integrated Engineering, Procurement, Construction, and Installation (iEPCI™) contract⁽¹⁾ by bp for its greenfield Kaskida development in the Gulf of Mexico.

The contract covers the design and manufacture of subsea production systems, including 20,000 psi (20K) standardized subsea trees and manifolds. The scope also includes the design, manufacture, and installation of subsea umbilicals, risers, and flowlines.

The award follows an integrated Front End Engineering and Design (iFEED®) study by TechnipFMC.

Jonathan Landes, President, Subsea for TechnipFMC, commented: “Our innovative high-pressure solutions are key to helping unlock the most economically attractive opportunities in the Paleogene. Kaskida is our latest iEPCI™ project with bp and is emblematic of our longstanding collaboration. Through early engagement, we’re leveraging the breadth of our technological and integration capabilities to help bp successfully deliver Kaskida.”

(1) For TechnipFMC, the contract is categorized as a “substantial” award, valued between $250 million and $500 million. This award was included in inbound orders in the third quarter of 2024.

Important Information for Investors and Securityholders

Forward-Looking Statement

This release contains "forward-looking statements" as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. The words “expect,” “believe,” “estimated,” and other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. Such forward-looking statements involve significant risks, uncertainties and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. For information regarding known material factors that could cause actual results to differ from projected results, including our assumptions and projections regarding the expected benefits of the awarded contract, please see our risk factors set forth in our filings with the United States Securities and Exchange Commission, which include our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. We caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law.

About TechnipFMC

TechnipFMC is a leading technology provider to the traditional and new energy industries, delivering fully integrated projects, products, and services.

With our proprietary technologies and comprehensive solutions, we are transforming our clients’ project economics, helping them unlock new possibilities to develop energy resources while reducing carbon intensity and supporting their energy transition ambitions.

Organized in two business segments — Subsea and Surface Technologies — we will continue to advance the industry with our pioneering integrated ecosystems (such as iEPCI™, iFEED™ and iComplete™), technology leadership and digital innovation.

Each of our approximately 21,000 employees is driven by a commitment to our clients’ success, and a culture of strong execution, purposeful innovation, and challenging industry conventions.

TechnipFMC uses its website as a channel of distribution of material company information. To learn more about how we are driving change in the industry, go to www.TechnipFMC.com and follow us on X (formerly Twitter) @TechnipFMC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241007678615/en/

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Source: TechnipFMC plc

FAQ

What is the value of TechnipFMC's contract for bp's Kaskida development?

The contract is valued between $250 million and $500 million, categorized as a 'substantial' award for TechnipFMC (NYSE: FTI).

What does TechnipFMC's iEPCI™ contract for bp's Kaskida project include?

The contract includes the design and manufacture of subsea production systems, 20,000 psi standardized subsea trees and manifolds, as well as the design, manufacture, and installation of subsea umbilicals, risers, and flowlines.

When was the TechnipFMC (FTI) contract for bp's Kaskida development included in inbound orders?

The contract was included in inbound orders for the third quarter of 2024.

Where is bp's Kaskida development project located?

The Kaskida development project is located in the Gulf of Mexico.