TechnipFMC has won major offshore engineering orders from two energy giants with a total value of up to US$2 billion.
British offshore contractor TechnipFMC has announced that it has been awarded two offshore contracts from energy developers Equinor and Shell to provide services for the Johan Sverdrup Phase III development in the Norwegian part of the North Sea and the Gato do Mato project offshore Brazil. The total value of the two offshore contracts is at least $1.5 billion to $2 billion.
Under the integrated engineering, procurement, construction and installation contract with Equinor, TechnipFMC will be responsible for the design, fabrication and installation of the subsea production system, umbilical cables and rigid pipelines for the Johan Sverdrup Phase III development, as well as the connection of the new templates to the existing Johan Sverdrup field center. The contract was awarded directly following a comprehensive FEED study.
While financial details have not been disclosed, TechnipFMC said the Equinor contract is positioned as a large contract, meaning it is valued at between $500 million and $1 billion. The contract will be included in the backlog in the first quarter of 2025.
TechnipFMC has also been awarded a major integrated Engineering, Procurement, Construction and Installation (iEPCI™) contract worth over $1 billion by Shell for its Gato do Mato greenfield development offshore Brazil.
In addition to integrated execution, the project will utilize Subsea 2.0® configure-to-order (CTO) subsea production systems. Combining both offerings will enable streamlined project management through a single interface and accelerate time to first oil.
The Johan Sverdrup field initially began production in 2019 and has become one of the largest development projects in the region. The Phase 3 development will increase production by connecting more wells to existing infrastructure, which is powered by onshore low-emission resources.
The Gato do Mato consortium includes Shell (operator, 50%), Ecopetrol (30%), TotalEnergies (20%) and Pré-Sal Petróleo (PPSA), the manager of the production sharing contract (PSC).
Located in the Santos Basin, about 200 km offshore Brazil, at a water depth of about 2,000 meters, the project is a pre-salt gas condensate discovery covering two adjacent blocks – BM-S-54 (concession contract signed in 2005) and Sul de Gato do Mato (production sharing agreement signed in 2017), and is expected to start operations in 2029. Initial operations will include reinjection of natural gas to support reservoir pressure, with the option to export natural gas to onshore facilities in the future.