TechnipFMC Awarded Large Subsea Contract for ExxonMobil Guyana’s Whiptail Project
- TechnipFMC (FTI) awarded a substantial contract by ExxonMobil Guyana for the Whiptail project in Guyana's Stabroek Block.
- The contract includes the supply of 48 subsea trees, 12 manifolds, and associated equipment, with a total value falling between $500 million and $1 billion.
- TechnipFMC will provide project management, engineering, and manufacturing services for the subsea production systems.
- The award will be recorded in the company's inbound orders for the second quarter of 2024.
- ExxonMobil Guyana will utilize TechnipFMC's Subsea 2.0® systems and manifolds for the Whiptail project.
- TechnipFMC has a history of successful collaboration with ExxonMobil Guyana, dating back to the Liza Phase 1 contract in 2017.
- The company is committed to hiring and training local staff in Guyana to support the project.
- None.
TechnipFMC's recent contract for the Whiptail project in Guyana represents a significant business engagement, underlining ExxonMobil's commitment to developing the Stabroek Block, one of the fastest developing basins in the world. As an Energy Sector Analyst, it's important to note the financial magnitude of such a contract, which falls between $500 million and $1 billion. This engagement not only showcases TechnipFMC's capacity to handle large-scale projects but also signals potential future revenue streams aligning with the industry's expansion in that region.
The provision of subsea systems, including 48 subsea trees and 12 manifolds, is critical for the extraction of hydrocarbons. Subsea trees are an assembly of valves and other components used to monitor and control the production of a subsea well. Manifolds aid in the regulation of oil or gas flow from the well. The application of TechnipFMC's Subsea 2.0® systems is intended to offer schedule certainty, which can mitigate operational risks and potentially lower costs over time.
The continued hiring and training of local Guyanese workforce by TechnipFMC could foster goodwill and smoother operations within local regulatory frameworks, which is a long-term benefit for stakeholders. Moreover, this could potentially lead to reduced labor costs and contribute to socio-economic development in the region, aligning corporate growth with sustainable development goals.
From a market perspective, such a large contract could be a positive indicator for investors interested in TechnipFMC's stock performance. Considering that this order will be included in inbound orders in the second quarter of 2024, it could serve as a catalyst for reassessment of the company's future earnings potential. Investors often look for order backlog as a sign of a company's health and projected growth.
Additionally, TechnipFMC's capability to secure repetitive business from a major player like ExxonMobil reflects positively on its market position and reliability as a service provider. This could translate into investor confidence and possibly, an improved stock valuation. Notably, the long-term aspect of such projects could mean a stable income stream for TechnipFMC, which is a vital consideration for dividend-seeking shareholders.
However, the energy sector is subject to volatility, driven by fluctuating oil prices and geopolitical events. As such, while the contract is substantial, investors should weigh it against the backdrop of broader market conditions and the inherent risks associated with the industry.
TechnipFMC will provide project management, engineering, and manufacturing to deliver 48 subsea trees and associated tooling, as well as 12 manifolds and associated controls and tie-in equipment.
Jonathan
TechnipFMC currently employs nearly 140 Guyanese, and expects to continue to hire and train additional local staff in support of this award.
Whiptail is TechnipFMC’s most recent award from ExxonMobil Guyana, where the Company has been awarded subsea production system contracts since the first contract award in 2017 for Liza Phase 1.
(1) For TechnipFMC, a “large” contract is between
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Forward-Looking Statement
This release contains "forward-looking statements" as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. The words “expect,” “believe,” “estimated,” and other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. Such forward-looking statements involve significant risks, uncertainties and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. For information regarding known material factors that could cause actual results to differ from projected results, including our assumptions and projections regarding the expected benefits of the awarded contract, please see our risk factors set forth in our filings with the United States Securities and Exchange Commission, which include our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. We caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law.
About TechnipFMC
TechnipFMC is a leading technology provider to the traditional and new energy industries, delivering fully integrated projects, products, and services.
With our proprietary technologies and comprehensive solutions, we are transforming our clients’ project economics, helping them unlock new possibilities to develop energy resources while reducing carbon intensity and supporting their energy transition ambitions.
Organized in two business segments — Subsea and Surface Technologies — we will continue to advance the industry with our pioneering integrated ecosystems (such as iEPCI™, iFEED™ and iComplete™), technology leadership and digital innovation.
Each of our approximately 21,000 employees is driven by a commitment to our clients’ success, and a culture of strong execution, purposeful innovation, and challenging industry conventions.
TechnipFMC uses its website as a channel of distribution of material company information. To learn more about how we are driving change in the industry, go to www.TechnipFMC.com and follow us on X (formerly Twitter) @TechnipFMC.
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FAQ
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