TechnipFMC Awarded Significant iEPCI™ Contract by Woodside Energy for Xena Phase 3 Development
TechnipFMC (NYSE: FTI) has secured a significant iEPCI™ contract from Woodside Energy (LON: WDS) for the Xena Phase 3 development in Australia. The contract entails design, manufacturing, and installation of the subsea production system, flexible pipe, and umbilicals for the Xena Infill well (XNA03), supporting the Pluto LNG Project. This follows an iFEED™ study and will use TechnipFMC's Subsea 2.0® system. The project will integrate with existing infrastructure previously supplied by TechnipFMC. The contract value ranges between $75 million and $250 million and will be recorded in Q2 2024 orders.
- TechnipFMC won a significant contract valued between $75 million and $250 million.
- The project will utilize TechnipFMC's proprietary Subsea 2.0® production system.
- TechnipFMC continues its long-term relationship with Woodside Energy.
- Contract will be recorded in inbound orders for Q2 2024, enhancing future revenue.
- Successful execution of the iFEED™ and iEPCI™ methodologies.
- Revenue from the contract will not be realized until Q2 2024.
- Potential project risks associated with execution and integration with existing infrastructure.
- Dependency on Woodside Energy for ongoing and future projects.
Insights
The award of a significant iEPCI™ contract by Woodside Energy is a notable event for TechnipFMC. This contract, valued between
Moreover, the framework agreement's continuation showcases the strength of TechnipFMC's relationship with Woodside Energy, hinting at future collaboration opportunities. This could provide long-term revenue stability and market confidence. However, investors should also consider industry risks such as fluctuating commodity prices and geopolitical factors impacting energy projects.
This contract highlights the ongoing momentum in LNG and energy infrastructure development, a sector poised for growth as global energy demands rise and the transition to cleaner energy sources accelerates. The use of TechnipFMC's Subsea 2.0® production system suggests potential advancements in efficiency and cost-effectiveness, making this project significant in the context of competitive advantage and technological leadership.
As the energy sector evolves, technologies that enhance production efficiency and reduce costs will be critical differentiators. Investors should note that TechnipFMC's innovative approaches could position them favorably against competitors, ensuring sustainable growth and profitability.
The deployment of the Subsea 2.0® production system in this project is noteworthy. This technology aims to simplify subsea operations, reduce complexity and lower project costs. For investors, the successful implementation of this system can indicate a lower risk profile for TechnipFMC projects, as streamlined processes tend to result in fewer operational hiccups and potential cost overruns.
Additionally, the repeated selection by Woodside Energy underscores a strong vote of confidence in TechnipFMC's engineering capabilities. This reliability can be important in securing future contracts and fortifying the company's market position.
TechnipFMC will design, manufacture, and install the subsea production system, flexible pipe, and umbilicals for the Xena Infill well (XNA03) to support ongoing production from the Pluto LNG Project. The award follows an integrated front end engineering design (iFEED™) study.
The project will use the Company’s Subsea 2.0® production system. Xena Phase 3 will be tied back to existing subsea infrastructure previously supplied by TechnipFMC.
Jonathan
The contract is the latest call-off on the framework agreement between Woodside Energy and TechnipFMC.
(1) For TechnipFMC, a “significant” contract is between
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.
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FAQ
What is the value of TechnipFMC's contract with Woodside Energy for Xena Phase 3?
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