TechnipFMC Awarded Substantial Subsea Contract for Shell’s Bonga North Development in Nigeria

Rhea-AI Summary

TechnipFMC (NYSE: FTI) has secured a substantial contract worth between $250 million and $500 million from Shell Nigeria Exploration and Production Company for the Bonga North development in Nigeria. The scope includes design and manufacture of Subsea 2.0® production systems, including subsea tree systems, manifolds, jumpers, controls, and services.

Shell continues to implement TechnipFMC's Subsea 2.0® configure-to-order solution across multiple basins, being the first to adopt this technology. The contract will be included in inbound orders in the fourth quarter of 2024.

Positive

• Secured substantial contract valued between $250-500 million
• Strategic deployment of Subsea 2.0® technology with major client Shell
• Strengthens position for future deepwater opportunities in the region

Negative

• None.

Insights

Financial Analyst

This substantial contract win of $250-500 million from Shell significantly strengthens TechnipFMC's position in the African subsea market. The Bonga North project represents a major revenue opportunity, with the contract scope covering comprehensive subsea production systems. The continued adoption of TechnipFMC's Subsea 2.0® technology by Shell demonstrates strong client confidence and validates the company's technological leadership. This win will bolster TechnipFMC's Q4 2024 order backlog and provides improved revenue visibility for 2025 and beyond. The African deepwater market remains a key growth driver for subsea equipment providers and this contract positions TechnipFMC favorably for future opportunities in the region. The company's configure-to-order solution helps reduce project complexity and costs while improving delivery times.

Energy Industry Analyst

Shell's investment in the Bonga North development signals continued confidence in Nigeria's offshore sector despite regional challenges. The deployment of TechnipFMC's Subsea 2.0® technology is particularly noteworthy as it represents a more efficient and standardized approach to subsea equipment, potentially reducing project execution risks and timeline. This contract is strategically important as it strengthens the long-standing relationship between Shell and TechnipFMC while potentially opening doors for additional work in West Africa's growing deepwater market. The standardization of subsea equipment through the configure-to-order model could lead to improved project economics, which is important in the current cost-conscious environment of offshore developments.

NEWCASTLE & HOUSTON--(BUSINESS WIRE)-- TechnipFMC (NYSE: FTI) has been awarded a substantial⁽¹⁾ contract by Shell Nigeria Exploration and Production Company Limited to supply Subsea 2.0^® production systems for the Bonga North development in Nigeria.

The contract covers the design and manufacture of subsea tree systems, manifolds, jumpers, controls, and services.

Jonathan Landes, President, Subsea at TechnipFMC, commented: “Shell was the first to adopt our Subsea 2.0^® configure-to-order solution, and continues to deploy it across multiple basins—underscoring its commitment to the technology globally. This award further positions us for future deepwater opportunities in the region.”

(1) For TechnipFMC, a “substantial” contract is between $250 million and $500 million. This award will be included in inbound orders in the fourth 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 @TechnipFMC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241217752268/en/

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Source: TechnipFMC plc

FAQ

What is the value of TechnipFMC's (FTI) Bonga North contract with Shell?

The contract is classified as 'substantial,' meaning it is valued between $250 million and $500 million.

What is included in TechnipFMC's (FTI) Bonga North contract scope?

The contract covers the design and manufacture of subsea tree systems, manifolds, jumpers, controls, and services using Subsea 2.0® production systems.

When will the Shell Bonga North contract be included in TechnipFMC's (FTI) inbound orders?

The contract will be included in inbound orders in the fourth quarter of 2024.

Which company was the first to adopt TechnipFMC's (FTI) Subsea 2.0® technology?

Shell was the first company to adopt TechnipFMC's Subsea 2.0® configure-to-order solution.