TechnipFMC Awarded Substantial Subsea Services Offshore Brazil Contract by Petrobras

Rhea-AI Summary

TechnipFMC (NYSE: FTI) has secured a significant three-year master services agreement with Petrobras, with an option for a two-year extension. This contract covers life-of-field services for subsea operations in Brazil, including installation, intervention, and maintenance. The agreement is a continuation of their long-standing partnership, with services expected to come from TechnipFMC’s base in Macaé, Brazil. The contract value is classified as 'substantial,' estimated between $250 million and $500 million, with portions included in the fourth quarter 2022 financial results and additional revenue expected in the future.

Positive

• Secured a substantial master services agreement with Petrobras valued between $250 million and $500 million.
• Continuation of a long-standing partnership with Petrobras, enhancing operational stability.
• Services will be supplied from TechnipFMC’s established base in Macaé, Brazil, ensuring local operational efficacy.

Negative

• None.

NEWCASTLE & HOUSTON--(BUSINESS WIRE)-- TechnipFMC (NYSE: FTI) has been awarded a substantial⁽¹⁾ master services agreement (MSA) for subsea services with Petrobras. The three-year contract has an option to extend for a further two years.

TechnipFMC will provide life-of-field services to support its installed base offshore Brazil. The contract covers installation, intervention, and maintenance of both equipment and tooling, as well as technical support for subsea umblicals, risers and flowlines.

The agreement succeeds a previous MSA and supports Petrobras’s increased volume of operations. Services will be supplied from TechnipFMC’s base in Macaé, Brazil.

Jonathan Landes, President, Subsea at TechnipFMC, commented: “This new MSA continues our enduring partnership with Petrobras. We are delighted to continue this relationship through this direct award. For 40 years, we have provided services from Macaé, demonstrating the strength of our commitment to delivering services using our in-country workforce.”

(1) For TechnipFMC, a “substantial” contract is between $250 million and $500 million. Note: a portion of this inbound order was included in the Company’s fourth quarter 2022 financial results. A portion of this award will be inbound in future periods.

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 20,000 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 Twitter @TechnipFMC.

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Source: TechnipFMC plc

FAQ

What is the recent contract awarded to TechnipFMC (FTI)?

TechnipFMC was awarded a three-year master services agreement with Petrobras for subsea services, with an option to extend for two more years.

What is the estimated value of the contract awarded to TechnipFMC (FTI) by Petrobras?

The estimated value of the contract is between $250 million and $500 million.

How long is the master services agreement TechnipFMC (FTI) has with Petrobras?

The master services agreement is for three years, with an option to extend for an additional two years.

Where will TechnipFMC (FTI) provide its services under the new contract?

TechnipFMC will provide services from its base in Macaé, Brazil.