Press release | August 28, 2018
TechnipFMC Wins a Large Contract for Vietnam’s Largest Olefins Plant
LONDON & PARIS & HOUSTON--(BUSINESS WIRE)-- TechnipFMC (Paris:FTI) (NYSE:FTI) (ISIN:GB00BDSFG982) has been awarded by Long Son Petrochemicals Co., Ltd. (LSP), a large(1) contract for the licensing, engineering, procurement, construction, commissioning and start-up of Vietnam’s first olefins(2) plant on Long Son Island, Ba Ria-Vung Tau province, Vietnam.
Designed as a flexible feed cracker, the olefins plant can utilize both naphtha and LPG(3) feeds to produce olefins of up to 1.6 million tons per year depending on the feedstock mix. The olefins will help meet Vietnam’s rising demand for petrochemical products. The plant will also include proprietary licensed units(4) and will be based on TechnipFMC’s proprietary ethylene technology(5).
TechnipFMC is executing the project in a consortium with SK Engineering & Construction Co., Ltd. of South Korea. TechnipFMC is the leader of the consortium and, as a global company, will execute all engineering, as well as the procurement of critical equipment from its operating centers located in Houston, USA, Rome, Italy and Kuala Lumpur, Malaysia.
Nello Uccelletti, President of TechnipFMC’s Onshore/Offshore business, commented: “Our reliable proprietary ethylene technology and proven engineering, procurement and construction capabilities were key factors in this important, highly competitive award and confirms our leadership in this market. TechnipFMC will ensure, with SK Engineering & Construction, that this ambitious mega project is successfully delivered on time and on budget, meeting the highest safety and quality standards”.
The contract adds on to the remarkable list of TechnipFMC’s references of onshore achievements in Vietnam, in particular the country’s very first oil refinery, the Dung Quất Refinery and the Phu My Fertilizer Complex.
For TechnipFMC, a “large” contract ranges
between $500 million and $1 billion (TechnipFMC share).
(2) Family of molecules including in particular ethylene and propylene, which constitutes the raw material allowing for the manufacture of many plastics.
(3) LPG: liquefied petroleum gas.
(4) C3 hydrogenation, C4/C5 hydrogenation, pyrolysis gasoline hydrogenation and butadiene recovery units.
(5) The proprietary ethylene technology includes these key components:
- Ultra Selective Conversion (USC®) furnaces preferred for high selectivity and low cost,
- Heat-Integrated Rectifier System®, preferred for energy efficient ethylene recovery
Important Information for Investors and Securityholders
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 “estimated”, “aimed”, “scheduled” and 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. Known material factors that could cause our actual results to differ from those in the forward-looking statements include the Company's ability to successfully deliver, and Long Son Petrochemicals Co., Ltd.’s acceptance of, the onshore products ordered. For additional 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 Registration Statement on Form S-4, 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.
TechnipFMC is a global leader in subsea, onshore/offshore, and surface projects. With our proprietary technologies and production systems, integrated expertise, and comprehensive solutions, we are transforming our clients’ project economics.
We are uniquely positioned to deliver greater efficiency across project lifecycles from concept to project delivery and beyond. Through innovative technologies and improved efficiencies, our offering unlocks new possibilities for our clients in developing their oil and gas resources.
Each of our more than 37,000 employees is driven by a steady commitment to clients and a culture of purposeful innovation, challenging industry conventions, and rethinking how the best results are achieved.
To learn more about us and how we are enhancing the performance of the world’s energy industry, go to TechnipFMC.com and follow us on Twitter @TechnipFMC.
Matt Seinsheimer, +1 281 260 3665
Vice President Investor Relations
Email: Matt Seinsheimer
Phillip Lindsay, +44 203 429 3929
Director Investor Relations Europe
Email: Phillip Lindsay
Christophe Belorgeot, +33 1 47 78 39 92
Vice President Corporate Communications
Email: Christophe Belorgeot
Delphine Nayral, +33 1 47 78 34 83
Senior Manager Public Relations
Email: Delphine Nayral