Technip looks for 2014 West of Shetland growth after landing

Offshore services firm Technip has landed a $1.2billion dollar deal for Tullow’s TEN project off the coast of Ghana.

The project, covering the massive development of the Tweneboa, Enyenra and Ntomme fields, will see Technip and partners Subsea 7 providing engineering on 48km of risers, water injection systems, umbilicals and rigid jumpers in water depths of up to 2000m.

Engineering work for the flowlines will be carried out at Technip’s base in Easter Ross, with other work being done in Paris, Le Trait and in Ghana, ahead of completion in 2016.  Technip’s share of the deal is worth around $730million.

The deal comes as Technip saw its order backlog rise to almost EU16billion – with EU8billion of that in subsea projects.

Profits rose at the French firm by 1.9% to EU150million for the third quarter of the year compared to the same period last year, with revenues up 15.6% to EU2.4billion.

The companys subsea profitability was hit by currency fluctuations and one-off costs, but chief executive Thierry Pilenko said the benefits would be felt next year.

“We can confirm that there will be much less new start-up cost compared to 2013, and the positive contribution of subsea installation work on large, multi-year subsea projects will materialise as the year progresses.”

Order intake rose by EU3billion for the quarter, including significant winds in Brazil and the Middle East, with the company looking forward to increased activity on West of Shetland projects next year.

“We see project award momentum over the coming months in for example downstream North America and Asia Pacific, large offshore projects in Africa, pre-salt flexible pipe awards in Brazil and frontier subsea areas like the West of Shetland in the North Sea,” said Pilenko.

“Accordingly we will continue to drive our strategic development in like with key pillars of our strategy. In the coming months we will remain most of all closely focused on our current projects to maintain our strong execution track record.”