Reference Document

Overview of the Group’s Activities
6.1. Technip’s business in 2009 6
The first contract comprises the engineering and fabrication of
seven 10-inch diameter and two 8-inch diameter risers for a total
length of more than 27 kilometers (17 miles). The second covers
engineering, fabrication and installation of approximately 48 kilometers
(30 miles) of production and gas and water injection rigid
flowlines; installation of 26 kilometers (16 miles) of umbilicals,
nine flexible risers (supplied by Technip under the first contract)
and subsea manifold and riser base structures; connection of the
flowlines to the wellheads and subsea manifolds; and testing the
entire system. The offshore campaign is scheduled to start in
early 2010.
Recognizing Technip’s ability to tackle innovative projects, Eni
Norge AS awarded us an engineering, procurement, construction
and installation contract for the Goliat field development (1) .
Goliat will be the first Norwegian oil-producing field north of the
Arctic Circle in the Barents Sea. The field is located approximately
85 kilometers (53 miles) northwest of the city of Hammerfest
on the Norwegian coast. The lump sum contract includes supply
and installation of the infield pipeline systems, including flexible
risers, clad production flowlines complete with direct heating
systems, and water and gas injection flowlines. The contract also
comprises the installation of the subsea production system, including
umbilicals, templates and riser bases provided by the client.
Technip was selected by Eni Norge after an in-depth evaluation
of the technical and commercial aspects of the contract. Offshore
installation is scheduled to be carried-out over three construction
seasons from 2011 to 2013.
In November Technip was awarded a lump sum contract by ENI
US Operating for the Appaloosa development project in the
Gulf of Mexico at a water depth of approximately 860 meters
(2,825 feet). The contract covers project management and
surveys, engineering, fabrication and installation of a 34 kilometers
(21 miles long) production flowline, a riser and subsea
equipment; installation of free issued umbilical and flying leads;
and pre-commissioning and dewatering of the flowline.
In December Technip was awarded an engineering, procurement,
construction and installation lump sum contract by Statoil ASA
for the Åsgard Gas Transfer Project (2) , located on the Norwegian
Continental Shelf at a water depth of 300 meters (984 feet). The
contract covers fabrication and installation of an approximately
4 kilometers (2.5 miles) long rigid flowline in 2010 and the replacement
of two flexible risers in 2011.
Technip also won a lump sum engineering, procurement, installation
and construction (EPIC) contract from Burullus Gas Company
SAE (3) for the West Delta Deep Marine (WDDM) Phase VII
development project. The project is designed to maintain overall
plateau production for the WDDM Concession, located 95 kilometers
(59 miles) offshore Egypt in the Mediterranean. Technip’s
operating center in Oslo, Norway, will execute this contract with
assistance from the Group’s team in Cairo, Egypt. It covers turnkey
delivery of the tie-in structure between a new gas export pipeline
and two existing pipelines, including the connecting work that
will be carried out without stopping the ongoing production (“hot
tap tie-in”). This contract demonstrates the synergies between
Technip’s operating centers and the flexibility of its organization.
As 2009 drew to a close, Technip added two more contracts from
BP for the Schiehallion field development. The field is located in
the North Sea, 175 kilometers (110 miles) west of the Shetland
Islands, United Kingdom. The first contract, already completed,
was on a lump sum/reimbursable basis and covered the design
and manufacture of a 720 meters (2,400 feet) gas-lift flexible
riser and a 770 meters (2,500 feet) water-injection flexible riser.
The second contract testing of the entire system. The offshore,
on a reimbursable basis, covers the installation of these risers, as
well as pre-commissioning, tie-ins and testing. These awards fall
under a current agreement with BP to provide diving construction
services for extensions to existing hydrocarbon field development
projects in the North Sea.
In other Subsea segment news Technip and Subsea 7 announced
in February that they would dissolve their joint venture, Technip
Subsea 7 Asia Pacific (TS7), once all its existing projects and
tendered work have been completed. TS7 was formed in 2006
after several years of collaboration between the two companies
and has successfully executed a number of major offshore development
projects. With the expected continued growth of the
deepwater subsea construction market in the region, the parties
now wish to pursue separate strategic development opportunities,
but this does not exclude working together on a case-by-case
basis on future projects.
During the summer of 2009, Technip acquired a newly built
construction support vessel hull, the North Ocean 103, from
Oceanteam ASA. The transaction was completed with the
purchase of the ship-owning entity, North Ocean III KS. The vessel
will be fitted out to Technip’s specifications in 2009/10 at its yard
in Pori, Finland. The acquisition accelerates Technip’s strategy of
renewing its fleet with state-of-the-art pipelay and construction
vessels. The North Ocean 103 will enable the company to replace
the 30-year-old Apache in 2010. This new vessel will strengthen
Technip’s abilities to carry out rigid pipelay operations in harsh
environments and a wide variety of water depths. This operation
illustrates Technip’s confidence in the Subsea market and reflects
Technip’s willingness to enhance its competitiveness, using its
liquid balance sheet to acquire world-class assets and thereby
reinforce its leadership.
In November, Technip and Schlumberger announced a global
cooperation agreement to jointly develop subsea integrity and
surveillance solutions for flexible pipes used in deep offshore oil
and gas production. The new agreement extends the collaboration
between the companies that began in 1998. The agreement
initially focuses on surveillance systems activities for new and
challenging flexible pipe applications such as those required
in the deepwater pre-salt environment in Brazil. Several key
Schlumberger technologies used in subsurface applications have
been identified for integration into Technip’s new ultra deepwater
(1) The Production License No PL229/PL229B (Goliat) Owner Group consists of ENI Norge (65% and Operator) and StatoilHydro (35%).
(2) The Production License No PL 094 Owner Group consists of Statoil ASA (operator), ExxonMobil E&P Norway, ENI, Total and Petoro.
(3) Burullus Gas Company SAE is a joint operating company of Egyptian General Petroleum Corporation (EGPC) 50%, BG Group 25% and Petronas 25% conducting oil and gas operations
on behalf of the WDDM partners.
2009 Reference Document
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