TechnipFMC Gets 20-Year Field Service Deal from Chevron

The Australian unit of Chevron Corp. has signed a 20-year agreement to contract TechnipFMC PLC for subsea gas production systems, the hydrocarbon engineering company said.

The configure-to-order deal with Chevron Australia Pty. Ltd. for projects off Australia’s northwest coast “covers the supply of wellheads, tree systems, manifolds, controls, flexible jumpers, and flying leads”, TechnipFMC said in a press release Thursday.

TechnipFMC will use its Subsea 2.0 trademarked package, which it says is an upgrade from engineer-to-order solutions.

“Subsea 2.0™ is field-proven technology, which reduces engineering complexity and shortens lead times”, TechnipFMC subsea president Jonathan Landes commented.

The Newcastle city-headquartered company earlier announced an agreement with another Australian company, Woodside Energy Group Ltd. TechnipFMC will “engineer, procure, construct, and install flexible pipes and umbilicals for the Julimar Phase 3 development, offshore Western Australia”, it said Wednesday of the pact with Woodside.

The Julimar field is connected to the Wheatstone processing plant for liquefied natural gas, which produced 12.2 million barrels of oil equivalent last year, according to Woodside’s annual report released February 27. Woodside plans to drill up to four wells in the third phase of the field’s development, according to a consultation information sheet it published April.

“The Company will tie back four subsea gas wells in the Carnarvon Basin to the existing Julimar subsea infrastructure producing to the Wheatstone platform, using high pressure, high temperature (HPHT) flexible pipe and steel tube umbilicals”, TechnipFMC’s announcement said.

“We have a strong history of solid project execution with Woodside as demonstrated by the successful delivery of the Pyxis, Lambert Deep, and Greater Western Flank Phase 3 projects”, Landes said.

With the Chevron pact TechnipFMC has now unveiled 13 agreements or contracts this year, in Angola, Australia, Brazil, Guyana, Norway and the USA.

New York-listed TechnipFMC has projected $5.9-6.3 billion in revenue from its Subsea segment and $1.3-1.45 billion from its Subsurface Technologies segment for 2023.

Subsea collected $1.3876 billion in revenue while surface technologies posted $329.8 million for the first quarter, the company said in its quarterly earnings report April 27.

“Looking beyond 2022, we remain confident in the strength of this upcycle and continue to believe that international markets will lead the next leg of expansion, driven by offshore and the Middle East”, chair and chief executive Doug Pferdehirt said in TechnipFMC’s fourth quarter 2023 results report. “More than 90% of our revenue is generated outside of North America land, and we have leading positions that are geographically levered to these important growth markets.”

“Our Subsea Opportunities list, which highlights larger projects with the potential for award over the next 24 months, continues to represent a record level. This is a result of increased capital spending and an expanding customer base in all major offshore basins”, he added. “We expect to see a material increase in the value of iEPCI™ [integrated engineering, procurement, construction and installation] awards in our 2023 inbound, leading to a record year for integrated project awards.”

TechnipFMC expects orders to breach $8 billion this year.

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