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TechnipFMC (FTI) Wins Subsea Tie-back Contract in Offshore Egypt

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TechnipFMC Plc (FTI - Free Report) acquired a major integrated Engineering Procurement Construction and Installation (iEPCI) contract from AbuQir Petroleum for a subsea tie-back on the North El Amriya and North Idku (NEA/NI) concession off the Egyptian coast.

Notably, AbuQir Petroleum is a joint venture between upstream company Energean Plc and Egyptian General Petroleum Corporation, which is engaged in crude oil exploration, refining and storage.

The NEA and NI concessions are fully owned by Energean and are managed by separate joint venture companies. However, they both fall under the overall management of Abu Qir Petroleum. The NEA concession, operated by Petroamriya JV, involves two discovered and assessed gas fields — Yazzi and Python — while the Nipetco JV-operated NI concession includes four discovered gas fields, wherein one gas field is prepared for development.

Per the terms of the contract, TechnipFMC will procure the necessary materials, undertake construction and installation of four subsea wells, and connect it to the existing production center. Moreover, it will design, manufacture, deliver and install subsea equipment, which comprises the subsea production system, subsea trees, production manifolds, umbilicals, flexible pipelines, jumpers, and associated subsea and topside controls.

The development wells will be drilled to a vertical depth of 60-90 meters, of which three will be placed in the NEA concession and one in NI. Importantly, the concessions are expected to start production by the latter half of 2022. The project marks a notable development and is expected to provide significant advantages to Egypt’s long-term production profile, while offering additional cost management and strategic benefits.

On its part, the project reflects TechnipFMC’s position as a market and technology leader for integrated projects and validates the benefits of its iEPCI solution for subsea developments.

Company profile & Price Performance

TechnipFMC is a leading manufacturer and supplier of products, services and fully-integrated technology solutions for the energy industry. It operates through two business segments — Subsea and Surface Technologies.

Shares of the company have underperformed the industry in the past three months. Its stock has declined 17.9% against the industry’s 7.1% growth.

 

 

Zacks Rank & Stocks to Consider

TechnipFMC currently carries a Zack Rank #4 (Sell).

Some better-ranked players in the energy space are Repsol SA (REPYY - Free Report) and Bonanza Creek Energy, Inc. (BCEI - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy), and Ecopetrol SA (EC - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Repsol’s earnings for 2021 are expected to rise 29.9% year over year.

Bonanza Creek’s earnings for 2021 are anticipated to increase 7.5% year over year.

Ecopetrol’s earnings for 2021 are expected to surge 162.7% year over year.

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