The Australian unit of Chevron Corp. has signed a 20-year agreement to hire TechnipFMC PLC for subsea gas production systems, the hydrocarbon engineering company said.
The make-to-order agreement with Chevron Australia Pty. Ltd. for projects on Australia’s northwest coast “covers the supply of wellheads, tree systems, manifolds, controls, flexible bridges and flywires,” TechnipFMC said in a press release on Thursday.
TechnipFMC will use its trademark Subsea 2.0 package, which it says is an engineer-to-order solutions upgrade.
“Subsea 2.0™ is a field-proven technology that reduces engineering complexity and shortens delivery times,” commented TechnipFMC Subsea President Jonathan Landes.
The Newcastle-based company previously announced a deal with another Australian company, Woodside Energy Group Ltd. TechnipFMC will “design, procure, construct and install flexible pipes and umbilicals for the Julimar Phase 3 development, offshore Western Australia,” it said on Wednesday. of the pact with Woodside.
The Julimar field is connected to the Wheatstone liquefied natural gas processing plant, which produced 12.2 million barrels of oil equivalent last year, according to Woodside’s annual report released on February 27. Woodside plans to drill up to four wells in the third phase of the field. development, according to a consultation fact sheet it published in April.
“The company will link four subsea gas wells in the Carnarvon Basin to Julimar’s existing subsea infrastructure producing on the Wheatstone platform, using flexible high pressure high temperature (HPHT) tubing and steel tubing umbilicals,” said TechnipFMC.
“We have a strong track record of delivering solid projects with Woodside, as evidenced by the successful delivery of the Pyxis, Lambert Deep and Greater Western Flank Phase 3 projects,” said Landes.
With the Chevron pact, TechnipFMC has announced 13 agreements or contracts this year, in Angola, Australia, Brazil, Guyana, Norway and the USA.
New York-listed TechnipFMC has projected revenue of $5.9 billion to $6.3 billion from its Subsea segment and $1.3 billion to $1.45 billion from its Subsurface Technologies segment by 2023.
Subsea brought in revenue of $1.3876 billion, while surface technologies posted $329.8 million in the first quarter, the company said in its April 27 quarterly earnings report.
“Looking beyond 2022, we remain confident in the strength of this improving cycle and continue to believe that international markets will lead the next stage of expansion, driven by offshore and the Middle East,” said the president and CEO Doug Pferdehirt in the fourth quarter of 2023 from TechnipFMC. results report. “More than 90% of our revenue is generated outside of North America, and we have leading positions that are geographically close to these important growth markets.”
“Our list of subsea opportunities, which highlights larger projects with award potential over the next 24 months, continues to represent a record high. This is the result of increased capital expenditure and expansion of 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 to our 2023 entry, leading to a record year for integrated project awards.”
TechnipFMC expects orders to breach $8 billion this year.
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