TechnipFMC Receives Notice to Proceed and Adds Additional Contract for the Yellowtail Development

Rhea-AI Summary

TechnipFMC (NYSE: FTI) has secured a significant contract from ExxonMobil's Esso Exploration for the Yellowtail development in Guyana's Stabroek Block. The contract encompasses six high-pressure and high-temperature risers. Additionally, it has received approval to proceed with a previously announced subsea production system contract, which includes 51 enhanced vertical deepwater trees and 12 manifolds. The majority of these contracts will contribute to TechnipFMC's second-quarter orders. The company currently employs 70 Guyanese and aims to expand its local workforce.

Positive

• Awarded a significant contract valued between $75 million and $250 million for six risers.
• Received approval for a subsea production system contract, enhancing project scope.
• Majority of contract value will contribute to Q2 inbound orders.
• Commitment to developing local workforce with plans to hire more Guyanese.

Negative

• None.

NEWCASTLE & HOUSTON--(BUSINESS WIRE)-- TechnipFMC (NYSE: FTI) has been awarded an additional contract and received notice to proceed by ExxonMobil (NYSE: EOM) affiliate Esso Exploration and Production Guyana Limited for its Yellowtail development in the Stabroek Block offshore Guyana.

The newly announced significant⁽¹⁾ flexibles contract covers six risers which are qualified for high pressure and high temperature.

The Company has also been given full notice to proceed with the previously announced contract for the subsea production system (SPS), following ExxonMobil’s final investment decision in April. The initial award of the large⁽²⁾ contract was announced in November 2021. TechnipFMC will provide project management, engineering, manufacturing and testing capabilities for the subsea production system, which includes 51 enhanced vertical deepwater trees (EVDT) and associated tooling, as well as 12 manifolds and associated controls and tie-in equipment.

The majority of the total contract awards will be included in the Company’s second quarter inbound orders.

Jonathan Landes, President, Subsea at TechnipFMC, commented: “We are thrilled that our partnership with the Stabroek Block operator continues to grow. We have an established presence in Guyana to accommodate the level of activity there and we’re committed to further developing local capabilities.”

TechnipFMC currently employs 70 Guyanese, and expects to continue to hire and train additional local staff in support of these awards.

⁽¹⁾ For TechnipFMC, a “significant” contract is between $75 million and $250 million.
⁽²⁾ For TechnipFMC, a “large” contract is between $500 million and $1 billion.

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 significance of the contract awarded to TechnipFMC by ExxonMobil?

The contract is significant as it is valued between $75 million and $250 million, covering six high-pressure and high-temperature risers for the Yellowtail development.

When did ExxonMobil give the notice to proceed for TechnipFMC's contract?

ExxonMobil provided the notice to proceed recently for the Yellowtail development contract.

How many jobs is TechnipFMC expected to create in Guyana?

TechnipFMC currently employs 70 Guyanese and plans to hire and train additional local staff to support the new contracts.

What is included in the subsea production system contract for TechnipFMC?

The subsea production system contract includes 51 enhanced vertical deepwater trees and 12 manifolds.

What is the expected impact of these contracts on TechnipFMC’s financials?

The contracts are expected to significantly contribute to TechnipFMC's second-quarter inbound orders.