Subsea US$4.1B earnings pushed by contracts in Guyana,Brazil - TechnipFMC

…hopeful orders would reach US$9B this year

Oil and gas company, TechnipFMC has boosted its 2023 outlook for subsea orders to US$9 billion. The company reported a loss in the second quarter of 2023, which it said was caused by aftertax charges and credits. However, the oilfield services heavyweight revealed strong subsea orders pushedbynewcontractsinGuyana andBrazil.

Doug Pferdehirt, Chair and Chief Executive Officer (CEO) of TechnipFMC, stated, “Our second quarter results reflect both strong operational performance and continueddeliveryonourfinancial commitments.”

Pferdehirt continued that subsea inbound orders of US$4.1 billionwereexceptionallystrongin theperiod,ApriltoJune2023.

Subsea orders included six integrated projects, including the direct award of the company’s largest integrated engineering, procurement, construction and installation (iEPCI™) to date, a contract from Equinor for the development in Brazil This contractislabeledasa“major”and issaidtobeworthmorethanUS$1 billion.

Another contract is the

ExxonMobil Uaru Project. The company labeled this contract as “large” as it is valued between US$500millionandUS$1billion.

Itwasstatedthatthecontractby ExxonMobil Corporation affiliate, Esso Exploration and Production Guyana Limited (EEPGL) is to supply the subsea production system for the Uaru project EEPGListheoperatorofGuyana’s lucrativeStabroekBlockwhichhas over11billionprovenbarrelsofoil.

TechnipFMC said it will provide project management, engineering, and manufacturing to deliver the overall subsea production system The award covers 44 subsea trees and associated tooling, as well as 12 manifolds and associated controls and tie-in equipment. It was noted that this is ExxonMobil Guyana’s first project utilizing the Subsea 2.0™ system, which leverages the Company’s configure-to-order model to deliver on an accelerated schedule.

TechnipFMChadexplainedina press statement that they will provide project management, engineering, and manufacturing to deliver the overall subsea production system Jonathan Landes, President of Subsea at TechnipFMC said, “We are very proud to continue our relationship with ExxonMobil Guyana through thisaward,whichisourfifthwithin the Stabroek block This is ExxonMobilGuyana’sfirstproject utilizing our Subsea 2.0™ system, which leverages our configure-toorder model to deliver on an acceleratedschedule.”

The remaining four projects were listed as “significant” as they are all valued between US$75 million and US$250 million Those contracts are: Equinor Riserless Light Well Intervention Contract (Norway), Shell Dover iEPCI™ Development (Gulf of Mexico), Woodside Julimar Phase 3 Development (Australia), Azule Energy Block 18 Infills Development (Angola) and OMV BerlingGasiEPCI™Development (Norway).

Pferdehirt underscored that iEPCI™ contracts has accounted formorethan50%ofTechnipFMC order intake He added, “We continue to expect iEPCI™ to achieveitshighesteverinboundin 2023, enabled by a record level of