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FEATURE TechnipFMC’s iEPCI [Operators] see the value of our proven suite of technological capabilities from SPS to the SURF side, and we can mitigate risk on the schedule for interfaces that we can handle internally and also improve time to first oil.

– ARILD SELVIG, VP SUBSEA COMMERCIAL, NORWAY & RUSSIA, TECHNIPFMC

Source: TechnipFMC tracts over the past three years. vig said: “We see that the majors are moving in an integrated

Doug Pferdehirt, Chairman and CEO of TechnipFMC, said contract model thinking. However, they see more that iEPCI in a statement announcing the company’s second quarter earn- is one important contract model in their toolbox, and in some ings, “In the subsea industry, iEPCI is a structural transforma- cases, it ? ts their agenda and what they are after regarding, for tion that is occurring as a result of the creation of Technip- example, accelerated schedule or new business environment.”

FMC, and this paradigm shift is accelerating. According to Bjørvik, majors BP and Eni have arguably been “Integrated project awards have exceeded $3 billion for the the most active operators globally when it comes to awarding ? rst half of the year, and we have secured 100% of these awards. integrated contracts. Among its iEPCI awards in 2019, Tech-

Importantly, integrated awards have accounted for more than 50 nipFMC has won two contracts from BP in the US Gulf of percent of our inbound orders in 2019. iEPCI has clearly proven Mexico (Atlantis Phase 3 and Thunder Horse South Expansion to be a unique growth engine for TechnipFMC,” Pferdehirt said. 2), as well as a large contract from Eni worth upwards of $500

Bjørvik said Norway and the UK is the region with the most million for the Merakes project offshore Indonesia.

integrated projects, with operators including Equinor, Nep- Another major, ConocoPhillips, this year awarded Technip- tune Energy, Lundin Petroleum, Hurricane Energy, Taqa and FMC an integrated contract for the Tor II project, an extension

ConocoPhillips having each opted for at least one integrated of the long-producing Tor ? eld in the Greater Eko? sk Area contract with one of the several alliance partner groups mar- of the Norwegian North Sea, representing the ? rst time the keting the approach today. operator has gone with subsea production and an integrated

For TechnipFMC, who has also secured integrated work in contract model, Selvig said.

other areas such as the Mediterranean, Gulf of Mexico, Ma- TechnipFMC completed an integrated front-end engineer- laysia and Indonesia, at least half of its iEPCI projects to date ing and design study (iFEED) for the project in autumn 2018, are in Norway and the UK. leading to discussions on the SPS and SURF portions, which

Selvig said the market for iEPCI projects should be divided TechnipFMC won. Delivered as an iEPCI project, the com- into two camps: majors and independents. pany will execute and install an integrated SPS and SURF

Independent companies see the value of long-term partner- solution. Tor II will include eight new production wells and a ship and early engagement support during the study phase two-by-four slot SPS planned to be connected to the Eko? sk moving into a direct negotiated integrated contract, he said, Complex by multiphase production and lift gas pipelines to adding iEPCI ? ts very well with their overall business model existing risers at the Eko? sk 2/4 M platform.

and taps into the contractor’s competence base. “They see the Selvig said that the Tor II iEPCI project has the potential to value of our proven suite of technological capabilities from be a springboard for a long-term relationship with the opera-

SPS to the SURF side, and we can mitigate risk on the sched- tor in Norway and the UK. Long-term partnerships are “very ule for interfaces that we can handle internally and also im- important”, he said. “TechnipFMC would like to be perceived prove time to ? rst oil,” Selvig said. in the market as a long-term, trusted partner delivering value

Majors, too, have seen the value of integrated contracts, Sel- to our clients for integrated projects.”

Award date Operator Project Location

November 2016 Equinor Trestakk Norwegian Sea

June 2017 Equinor Visund Nord Norwegian Sea

September 2017 Hurricane Energy Lancaster UK North Sea

December 2017VNG (acquired by Neptune Energy) Fenja Norwegian Sea

January 2019 Lundin Petroleum Solveig and Rolvsnes (combined as one project)Norwegian North Sea

April 2019 Neptune Energy Duva and Gjøa P1 (combined as one project)Norwegian North Sea

April 2019 ConocoPhillips TOR II Norwegian North Sea

July 2019 Neptune Energy Seagull Central North Sea 40 OFFSHORE ENGINEER OEDIGITAL.COM 32-49 OE JulyAug 2019.indd 40 8/9/2019 8:34:00 AM