TechnipFMC Awarded Major iEPCI™ Contract by Petrobras for Mero 3 HISEP® Project
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Insights
The award of a major iEPCI contract to TechnipFMC by Petrobras for the Mero 3 HISEP project represents a significant milestone in the energy sector, especially within the context of subsea engineering and construction. The use of HISEP technology for carbon capture and injection directly at the sea floor is a pioneering approach that could set a precedent for future offshore developments. The scale of the contract, exceeding $1 billion, is indicative of the project's potential impact on TechnipFMC's financials and the broader market's interest in sustainable energy production technologies.
From an investment standpoint, this contract could enhance TechnipFMC's revenue stream and strengthen its market position in subsea technologies. The focus on reducing greenhouse gas emissions aligns with global trends towards sustainable energy production and could provide TechnipFMC with a competitive advantage in securing similar contracts in the future. Moreover, the project's alignment with research and development guidance from the Brazilian National Petroleum Agency underscores its strategic importance and potential for replication in other pre-salt fields.
HISEP technology's ability to capture CO2-rich dense gases from the well stream and inject them back into the reservoir is a breakthrough in mitigating the environmental impact of offshore drilling. By moving part of the separation process from the topside platform to the seabed, HISEP reduces the greenhouse gas emission intensity and could play a vital role in the energy industry's transition towards more sustainable practices.
The environmental benefits, such as debottlenecking the topside gas processing plant and thereby increasing production capacity, demonstrate how technological innovation can simultaneously address ecological concerns and enhance operational efficiency. This dual benefit is essential for the acceptance and adoption of new technologies in an industry often scrutinized for its environmental footprint.
The integration of proprietary technologies in the Mero 3 project, such as gas separation systems and dense gas pumps, may lead to an increase in TechnipFMC's intellectual property assets, potentially creating additional revenue streams through licensing or sales to other projects. The collaboration with the Libra Consortium members also opens up avenues for future partnerships and projects, as these technologies prove successful.
Investors should monitor the deployment and performance of the HISEP technology as it could influence market perceptions of TechnipFMC's innovation capabilities and impact its stock valuation. The success of this project could also pave the way for similar technologies to gain traction in the market, potentially impacting the stock performance of other companies within the subsea technology space.
TechnipFMC, in partnership with Petrobras, has advanced the qualification of some of the core technologies needed to deliver the HISEP® (High Pressure Separation) process entirely subsea, several of which are proprietary and will be used in other subsea applications. These include gas separation systems and dense gas pumps which enable the injection of CO2-rich dense gas.
The Mero 3 project in Brazil’s pre-salt field will be the first to utilize Petrobras’s patented HISEP® process subsea. HISEP® technologies enable the capture of CO2-rich dense gases directly from the well stream, moving part of the separation process from the topside platform to the sea floor. In addition to reducing greenhouse gas emission intensity, HISEP® technologies increase production capacity by debottlenecking the topside gas processing plant. These technologies are supported by Petrobras and its partners in the Libra Consortium(2).
Luana Duffé, Executive Vice President, New Energy at TechnipFMC, commented: “This is an important moment for our Company. With the HISEP® project, we will again demonstrate how our leadership in subsea processing, technology innovation, and integrated solutions can deliver real and sustainable benefits to our partners. We are honored to be trusted by Petrobras and its partners in the Libra Consortium to deliver this transformational project.”
The contract covers the design, engineering, manufacture, and installation of subsea equipment, including manifolds, flexible and rigid pipes, umbilicals, power distribution, as well as life of field services. The contract follows a tender process and aligns with research and development guidance established by the Brazilian National Petroleum Agency (ANP).
(1) For TechnipFMC, a “major” contract is over
(2) The Libra Consortium consists of: Petrobras as operator (
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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.
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