Feature | October 18 2019
TechnipFMC’s integrated solutions surging in subsea market
TechnipFMC’s offer of a new generation of integrated solutions to strengthen subsea economics is gaining strong market momentum with a string of major contract wins.
The breakthrough integrated Engineering, Procurement, Construction and Installation (iEPCI™) offering is quickly gaining traction in the marketplace as scores of big projects move forward. Our integrated solutions are targeted to exceed 25 percent of this year’s total inbound activity.
“In the subsea industry, iEPCI™ is a structural transformation that is occurring as a result of the creation of TechnipFMC and this paradigm shift is accelerating,” Chief Executive Officer Doug Pferdehirt said. “Integrated project awards have exceeded $3 billion for the first half of the year and we have secured 100 percent of these awards. Importantly, integrated awards have accounted for more than 50 percent of our inbound orders in 2019. iEPCI™ has clearly proven to be a unique growth engine for TechnipFMC.”
Client confidence continues to grow in the iEPCI™ business model. So far TechnipFMC has been awarded 18 subsea iEPCI™ projects throughout the globe, with eight contracts coming in the first five months of 2019. BP, Lundin, ENI and ConocoPhillips were first-time iEPCI™ clients, with BP returning to award a second iEPCI™ contract.
More clients are realizing that by bringing together complementary skills and innovative technologies, they can lower seabed costs and unlock first oil and gas faster.
“This momentum is evidenced by our recent award for Anadarko’s Golfinho development in Mozambique,” Pferdehirt said. “Golfinho is also our largest integrated subsea project to date and further highlights the differentiation of iEPCI™.”
TechnipFMC’s integrated offering includes both SURF and SPS
Other major iEPCI™ contracts recently awarded include Shell’s PowerNap project in the Gulf of Mexico; Neptune Energy’s Seagull project in the Central North Sea; and BP’s Thunder Horse South Expansion 2 project in the Gulf of Mexico.
TechnipFMC is “by far the biggest player” in the integrated contract model combining the supply of subsea production systems (SPS) with the design and installation of subsea umbilical, risers and flowlines (SURF), according to Rystad Energy analyst Henning Bjørvik
TechnipFMC has pulled in more than half of its integrated subsea contracts during the past three years. Overall, about 50 percent of our iEPCI™ projects are in Norway and the United Kingdom, with others in the Mediterranean, Gulf of Mexico, Malaysia and Indonesia.
TechnipFMC is successfully developing long-term iEPCI™ alliance partners with several companies including Lundin, Neptune and Wintershall Dea already signing on. In our fifth iEPCI™ alliance, the partnership with Wintershall was expanded to create additional value through integrated FEED, EPCI and life of field services.
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Integrated approach gains market traction