Oilfield service company TechnipFMC (FTI) has been awarded a large subsea engineering, procurement, construction and installation (EPCI) contract by Petrobras on Jan. 24 for its Búzios 6 field (module 7), a greenfield development in the pre-salt area.
The contract covers flexible and rigid pipe, umbilicals, pipeline end terminals, rigid jumpers, umbilical termination assemblies and a mooring system.
“We are excited to announce this award, which demonstrates the continuing strength of the subsea market in Brazil and our collaborative relationship with Petrobras,” Jonathan Landes, president of subsea at TechnipFMC, said. “We used our deep understanding of the client’s needs to arrive at technological solutions developed specifically for the Búzios 6 field.”
TechnipFMC has secured contracts for the supply of production equipment, and the installation/intervention support services for Fields 6-9 of the Búzios project. This latest deal covers the SURF scope for Field 6, but the SURF work for Fields 7-9 still remains on the company’s subsea opportunity list, Tudor, Pickering, Holt analyst Taylor Zurcher said.
“As it relates to Búzios 6, the contract award announced yesterday continues a recent string of success for FTI in Brazil and should give the market further confidence in FTI’s [estimated] $7 billion subsea inbound target through year-end 2022 [Q4’21 through Q4’22],” Zurcher said in TPH’s Morning Note. “We continue to find the risk/reward in this stock extremely attractive at current levels.”
The flexible pipe, umbilicals and subsea structures, as well as some of the rigid pipe, will be manufactured in Brazil using skills and competencies the company has developed in-country, while minimizing the carbon footprint associated with transportation and installation. The project will also utilize our established and qualified Brazilian supply chain.
For TechnipFMC, a “large” contract is between $500 million and $1 billion.
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