TechnipFMC Awarded Significant Subsea Contract by bp in the Gulf of Mexico

Rhea-AI Summary

TechnipFMC (FTI) has been awarded a significant contract by bp (BP) for the Argos Southwest Extension project in the Gulf of Mexico. The contract, valued between $75 million and $250 million, includes the installation of pipe, umbilical, and pipeline end terminations, tying back three new wells to the Argos platform. This award was included in the fourth quarter 2023 Subsea inbound orders.

Insights

Energy Sector Analyst

The awarded contract to TechnipFMC by bp for the Argos Southwest Extension project represents a substantial investment in the continued development of the Mad Dog field, a strategic asset within the Gulf of Mexico. This development is indicative of bp's commitment to enhancing its production capabilities in the region. The contract, valued between $75 million and $250 million, is significant for TechnipFMC, suggesting a positive impact on the company's financials.

From an industry perspective, the investment in subsea infrastructure, such as pipelines and umbilicals, is essential for the long-term viability of offshore fields. The manufacturing and installation of pipeline end terminations are critical components that ensure the safe and efficient transport of hydrocarbons from the wellhead to the processing facilities.

For stakeholders, this contract could signal TechnipFMC's competitive edge in execution capabilities and its strong relationship with major industry players like bp. The inclusion of this contract in the fourth quarter 2023 Subsea inbound orders may also provide an indication of the company's order backlog and revenue potential in the upcoming periods.

Market Research Analyst

This contract award may be seen as a reflection of the broader market dynamics within the oil and gas industry. The demand for energy and the strategic importance of maintaining and expanding production in established fields like Mad Dog is a response to global energy needs. TechnipFMC's role in this project could be assessed in terms of market demand for subsea engineering services and the company's position within this niche sector.

Investors may interpret the announcement as a sign of TechnipFMC's robust order book and potential for future revenue growth. The ability to secure such contracts from industry giants like bp may also serve as a barometer for the company's market reputation and operational reliability. Furthermore, the project's timeline and its alignment with bp's schedule is crucial for evaluating TechnipFMC's project management and delivery capabilities.

Financial Analyst

The financial implications of the contract for TechnipFMC are multifaceted. The designation of the contract as 'significant' places it within a certain revenue range, which can be material for the company's financial performance. Investors should consider the impact of this contract on TechnipFMC's earnings, cash flow and profit margins.

It is also important to assess how this contract might influence TechnipFMC's stock performance, particularly in relation to the company's historical contract awards and their subsequent impact on share price. The timing of the contract's inclusion in the fourth quarter inbound orders might be seen as strategically important, potentially affecting investor sentiment and the company's market valuation.

Lastly, the stability and long-term nature of contracts in the energy sector provide a predictable revenue stream, which is favorable for financial planning and can lead to a more stable stock performance, barring external market volatilities.

NEWCASTLE & HOUSTON--(BUSINESS WIRE)-- TechnipFMC (NYSE: FTI) has been awarded a significant⁽¹⁾ contract by bp (LON: BP) for its Argos Southwest Extension project in the Mad Dog field.

TechnipFMC will install pipe and an umbilical, tying back three new wells to the Argos platform in the Gulf of Mexico.

Jonathan Landes, President, Subsea at TechnipFMC, commented: “We have a long-standing relationship with bp, underpinned by close collaboration. This partnership, combined with our robust installation and execution capabilities, enables us to meet bp’s schedule to extend the production in the Mad Dog field.”

Under the contract, TechnipFMC will also manufacture and install pipeline end terminations.

(1) For TechnipFMC, a “significant” contract is between $75 million and $250 million. This award was included in fourth quarter 2023 Subsea inbound orders.

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, 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/20240116406331/en/

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Matt Seinsheimer

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Email: Matt Seinsheimer



James Davis

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Email: James Davis



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David Willis

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Source: TechnipFMC plc

FAQ

What contract has TechnipFMC been awarded by bp?

TechnipFMC has been awarded a significant contract by bp for the Argos Southwest Extension project in the Gulf of Mexico.

What is the ticker symbol for TechnipFMC?

The ticker symbol for TechnipFMC is FTI.

What is the value of the contract awarded to TechnipFMC by bp?

The contract is valued between $75 million and $250 million.

What is included in the contract awarded to TechnipFMC by bp?

The contract includes the installation of pipe, umbilical, and pipeline end terminations, tying back three new wells to the Argos platform.

When was this contract awarded to TechnipFMC included in the Subsea inbound orders?

This contract was included in the fourth quarter 2023 Subsea inbound orders.