Technip, Global Industries Agree to Merge

- Technip, Global Industries Agree to Merge

Monday, September 12, 2011
Technip

Technip announced Monday an agreement to acquire the entire share capital of Global Industries and reinforce its leadership in the fast-growing subsea segment of oil services. The two companies have entered into a definitive merger agreement whereby Technip will pay US$8.00 per Global Industries share. The transaction values Global Industries at US$1,073 million (EUR768 million at current exchange rates), including approximately US$136 million of net debt. The Board of Directors of Global Industries has unanimously approved the transaction.

The transaction price represents a 55% premium to Global Industries' share closing price on September 9, 2011, the last day prior to announcement of the transaction. The transaction is to be funded using existing cash balances and credit facilities.

Global Industries brings to Technip its complementary subsea know-how, assets and experience, comprising 2,300 employees operating 14 vessels, including notably two newly-built leading edge S-Lay vessels, as well as strong positions in the Gulf of Mexico (US and Mexican waters), Asia-Pacific and the Middle East.

Technip's global presence, world-class technologies, assets and services and strong project management track record will realize the full value and potential of Global Industries' know-how, assets and experience, and broaden opportunities for Global Industries' employees.

The acquisition of Global Industries reinforces Technip's leadership in the fast-growing subsea market. Strong revenue synergies are expected as the acquisition will substantially increase Technip's current capabilities and expand its addressable market by around 30% in deep-to-shore subsea infrastructure. Cost synergies are estimated to be at least US$30 million.

Given the anticipated synergies, the transaction is expected to be accretive to Technip's earnings per share by around 5 to 7% in 2013.

The transaction is expected to close early in 2012. The management teams of Global Industries and Technip will work closely together to define the integration plan. Thierry Pilenko, Chairman and Chief Executive Officer of Technip, said:

"The acquisition of Global Industries reinforces Technip's leadership in Subsea, one of our three market segments alongside Onshore and Offshore. The subsea market looks likely in 2011 to show a record amount of orders for our industry and our own backlog at end-June 2011 is above its previous peak. We see that our customers continue to firm up a substantial number of large offshore developments with Brazil, the Gulf of Mexico, West Africa and Asia Pacific leading the way to drive future growth. Our investment in Global Industries substantially expands our addressable market in subsea. Global Industries' capabilities, know-how and experience, notably in S-Lay and Heavy Lift, add to our already unique vertically integrated range of products and services, enabling us to offer our clients greater value in the execution of complex projects from deep-to-shore. We expect that the application of Technip's own skills in offshore and subsea developments, its commercial footprint and its project management experience will drive a rapid deployment of the Global Industries teams and assets on customer projects. The transaction is expected to meet our hurdle rate, create value for Technip's shareholders, and raise earnings per share starting by around 5 to 7% in 2013."

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Technip Lands EPC Gig for Satah Full Field Development

- Technip Lands EPC Gig for Satah Full Field Development

Thursday, September 08, 2011
Technip

Technip, in consortium with NPCC, was awarded by ZADCO an engineering, procurement and construction lump sum contract, worth a total of approximately $500 million (Technip part of the contract: 35%), for the Satah Full Field Development project. This field is located 200 kilometers northwest of Abu Dhabi, United Arab Emirates.

The Satah Full Field Development project's objective is to maximize crude oil production and oil recovery by reducing the well heads' back pressure and introducing of gas injection and gas lift facilities.

The project scope involves offshore brownfield works to the existing well head platforms and production manifold platform, installation of infield pipelines, as well as modifications and installation of new facilities at the Onshore Satah plant at Zirku Island.

This project award is the recognition of our expertise in the growing brownfield projects market in the Middle-East, said Arturo Grimaldi, Senior Vice President of Technip in the Middle East. It also reflects the confidence of our client ZADCO in the strong consortium that we form with NPCC.

Technip's operating center in Abu Dhabi will execute the engineering and procurement activities while construction and installation activities for offshore works will be performed by NPCC. The Onshore construction activities will be carried out jointly by the consortium companies.

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Technip Scores Maersk Gig in North Sea

- Technip Scores Maersk Gig in North Sea

Tuesday, September 06, 2011
Technip

Technip was awarded an installation contract, worth approximately €40 million, by Maersk Oil North Sea UK Limited for the Gryphon Area Reinstatement Program – GARP, located about 320 kilometers North-East of Aberdeen in 110 meters of water.

This contract covers installation of 15 dynamic risers, 2 dynamic and 2 static umbilicals, 11 flexible flowlines as well as subsea equipment.

Technip's operating center in Aberdeen, Scotland will execute the contract, which is scheduled to be completed in the second semester of 2012. Vessels from the Technip fleet will be used for the campaign, including Skandi Arctic and Wellservicer.

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Technip Bags Gig at Anadarko's Lucius Field

- Technip Bags Gig at Anadarko's Lucius Field

Friday, August 19, 2011
Technip

Anadarko has issued a Letter of Intent to Technip for the engineering, construction and transport of a 23,000 ton Truss Spar hull for their Lucius field development. This field is located in approximately 7,100 feet (2,165 meters) of water, in the US Gulf of Mexico.

This Letter of Intent allows Technip to begin preliminary work on the project including purchase of long lead items for the hull in advance of the planned sanction date of December 2011.

The Lucius Spar will have a capacity of more than 80,000 barrels of oil and 450 million cubic feet of natural gas per day.

Technip's operating center in Houston, Texas, will provide the overall project management. The detailed hull design and fabrication will be carried out by Technip's yard in Pori (Finland), where most of the previous Technip Spar projects have been manufactured.

This Spar will be the fifteenth delivered by Technip (out of eighteen worldwide) and thus demonstrates both the leadership of the Group for this kind of floating platform and its ability to tackle ultra deep water developments. It also confirms the Pori yard track record expertise and great capabilities to deliver state-of-the-art platforms.

First oil is scheduled for 2014.

The Lucius Spar will be jointly owned by Anadarko (35%), Plains E&P (23.3%), ExxonMobil (15%), Apache (11.7%), Petrobras (9.6%) and Eni (5.4%).

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Technip Secures Contract for E. Rochelle Development

- Technip Secures Contract for E. Rochelle Development

Monday, June 27, 2011
Technip

Endeavour Energy UK Ltd, a subsidiary of Endeavour, awarded Technip an EPCI lump sum contract, worth around €70 million, for the East Rochelle development in the United Kingdom North Sea. The field is located approximately 185 kilometers north-east of Aberdeen, Scotland in 140 meters of water.

The contract covers full project management and detailed design, fabrication, installation and pre-commissioning of 30 kilometers of pipe-in-pipe, flexible riser, free issue umbilical, subsea isolation valves and manifolds. It also covers tie-in spools, trenching, backfill and rockdumping work.

Technip's operating center in Aberdeen will execute this contract. The pipe-in-pipe will be welded at Technip's spoolbase in Evanton, Scotland, while the flexible riser will be manufactured at the Group's flexible pipe plant in Le Trait, France. The offshore installation campaign is scheduled to be completed during the second half of 2012 and will use vessels from the Technip fleet.

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Technip Bags BP Umbilical Contract Offshore Vietnam

- Technip Bags BP Umbilical Contract Offshore Vietnam

Wednesday, June 15, 2011
Technip

Technip announced that its wholly-owned subsidiary DUCO Ltd. has been awarded a contract by BP Exploration Operating Company Limitedworth approximately €15 million for the Lan Do field development in Vietnam. This field is located 320 kilometers south of Ho Chi Minh City, at a water depth of 120-180 meters.

The contract includes the engineering, project management and fabrication of a main umbilical and an infield umbilical. The umbilicals will utilize a hybrid technology developed by DUCO, which uses steel tube and thermoplastic hose fluid conduits for hydraulic control and chemical injection services. They will be delivered in the first half of 2012.

The project will be executed in Technip's umbilical facilities in Newcastle, UK and in its new state of the art flexible pipe and umbilical manufacturing facility, Asiaflex Products, located in Johor State, Malaysia.

The award follows the recent successful delivery of the umbilical systems for BP's Skarv development in Norway and builds on Technip's track record in umbilical supply to BP stretching back over 25 years.

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Technip Wins Vigdis NE Subsea Contract

Technip Wins Vigdis NE Subsea Contract

Monday, May 09, 2011
Technip

Technip has been awarded by Statoil a contract, worth approximately EUR55 million, for the Vigdis NE field development located in the Norwegian Sea at a water depth of 220 - 310 meters.

This contract covers:

• welding and installation of flowlines, including a 1.5 kilometer pipe-in-pipe production flowline and a 9 kilometer plastic-lined water injection flowline,
• supply of flexible tails for the flowlines,
• subsea equipment installation,
• installation and tie-ins of flowlines flexible tails, jumpers and umbilicals.

Technip's operating center in Oslo, Norway will execute the contract. Flowline welding will take place in the Group's spoolbase in Orkanger, Norway, while flowline installation will be performed with the Apache II, a pipelay vessel from Technip fleet, in mid-2012.

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Technip Wins Contract for BHP's Macedon Project

Technip Wins Contract for BHP's Macedon Project

Wednesday, May 04, 2011
Technip

Technip announced Wednesday that it was awarded a reimbursable contract for the engineering work and services related to procurement and construction management for the Macedon gas project located 17 kilometers of Onslow in North West Australia.

The contract covers the onshore facilities consisting of a gas plant and pipelines works. Technip's operating centers in Perth, Australia and Kuala Lumpur, Malaysia will execute the contract, which is scheduled to be completed in 2013.

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BP Awards Technip 10-year Spar Deal

BP Awards Technip 10-year Spar Deal

Tuesday, May 03, 2011
Technip

Technip has been awarded a 10-year master agreement by BP Exploration and Production, Inc.

The agreement covers the design, procurement and construction of hulls and mooring systems for Spar platforms to be located in the Gulf of Mexico, as well as the design of top tension risers for dry tree units. This award follows a design competition and confirms Technip's leadership in Spar technology, secured over time through the construction of 14 of the 17 existing Spars worldwide.

Technip's operating center in Houston, Texas, will execute the agreement. It stipulates that the Spars will be fabricated at the Group's yard in Pori, Finland, where 12 of Technip's 14 Spars have already been manufactured.

Within the framework of this agreement, pre-front-end engineering design activity for the Mad Dog Phase II Spar has already begun. The front-end engineering design for this project is scheduled to commence in the second semester of 2011.

A Spar is a cylindrical, partially submerged offshore drilling and production platform that is particularly well-adapted to deepwater.

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Technip Beams over Contract Win for Sunrise Energy Proj.

Technip Beams over Contract Win for Sunrise Energy Proj.

Friday, April 22, 2011
Technip

Technip's wholly-owned subsidiary, KTI Corporation, was awarded a purchase order by Snamprogetti Canada to design and supply ten Once Through Steam Generation (OTSG) units for the first phase of the Sunrise Energy Project. The OTSG units are an integral part of the Steam-Assisted Gravity Drainage (SAGD) process being applied at Sunrise for the extraction of bitumen.

Sunrise is a SAGD Oil Sands Project being constructed approximately 60 kilometers northeast of Fort McMurray, Alberta, Canada and operated by Husky Energy. Upon completion of Phase 1 of the project, the facility is expected to produce approximately 60,000 barrels per day of bitumen.

Snamprogetti Canada is the prime contractor for engineering, procurement and construction of the Central Plant Facility for Sunrise Phase 1 where the OTSGs will be used.

KTI's engineering center in Houston, Texas will execute the OTSG contract. Final fabrication and assembly of the OTSGs will occur in Tofield, Alberta. Final delivery and completion of these units is scheduled for the second half of 2012.

Technip Lands EPIC Contract for Clipper South Development

Technip Lands EPIC Contract for Clipper South Development

Tuesday, April 05, 2011

Technip

Technip was awarded a full EPIC contract by RWE Dea, for the Clipper South gas field development in the North Sea. The field is located 70 kilometers North-east of the Bacton gas terminal in 25 meters of water.

The contract covers full project management, detailed pipeline design, installation and tie-in of a 15.5 kilometer 12" production line and 3" methanol piggyback line from the new Clipper South platform to the existing LOGGS (Lincolnshire Offshore Gas Gathering system) platform.

The contract builds on past experience with RWE: in 2008 Technip provided pipelay and umbilical installation for the Topaz field development, located in the Southern gas basin.
Technip's operating center in Aberdeen (Scotland) will execute this contract, which is scheduled to be completed in the fourth quarter of 2011. Genesis – a Technip Group company providing upstream oil and gas consultancy services – will also play a part in executing the contract through the provision of detailed pipeline design. Vessels from the Technip fleet will be used for the offshore installation campaign.

Technip Secures Engineering Contract Offshore UAE

Technip Secures Engineering Contract Offshore UAE

Tuesday, March 29, 2011

Technip

 

Technip was awarded an engineering services contract by ZADCO (a joint venture company between ADNOC, ExxonMobil and JODCO) for the UZ 750 project, one of the major offshore field development projects in the United Arab Emirates. The project aims at increasing by 2015 the oil production of the Upper Zakum field (located in the Gulf, 84 kilometers offshore Abu Dhabi) to 750,000 barrels of oil per day and to sustain this production target for at least 25 years.

The contract covers:

• front-end engineering design for process units on four artificial islands, including gas separation, gas lift compression, booster gas compression, as well as power generation, utilities, interconnecting pipelines and modification of existing facilities,
• procurement services for long lead items.

This contract follows the conceptual engineering, which has been successfully completed by Technip. Front-end engineering design is scheduled to be completed by the second semester of 2011. It will be executed by Technip's operating center in Abu Dhabi, as a new milestone in its continued support to Middle East clients in the early phases of their developments.