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TechnipFMC settles Iraq Bribery Case

By John Lee.

Oil and gas company TechnipFMC has agreed to pay more than $5 million to settle an Iraq-related corruption case with the US Securities and Exchange Commission (SEC).

The company is alleged to have taken part in bribery between 2008 and 2013 to secure business from Iraqi state-owned oil companies.

Just last month, the company announced that it would demerge its operations into two separate companies.

The full statement from the SEC can be read here.

(Source: SEC)

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TechnipFMC to Split Company

TechnipFMC plc (NYSE: FTI) (Paris: FTI) has announced that its Board of Directors has unanimously approved its plan to separate into two industry-leading, independent, publicly traded companies: RemainCo, a fully-integrated technology and services provider, continuing to drive energy development; and SpinCo, a leading engineering and construction (E&C) player, poised to capitalize on the global energy transition. The separation would enhance both RemainCo’s and SpinCo’s focus on their respective strategies and provide improved flexibility and growth opportunities.

The transaction is expected to be structured as a spin-off of TechnipFMC’s Onshore/Offshore segment to be headquartered in Paris, France. The separation is expected to be completed in the first half of 2020, subject to customary conditions, consultations and regulatory approvals, at which time all outstanding shares of SpinCo will be distributed to existing TechnipFMC shareholders.

The 2017 merger of Technip S.A. and FMC Technologies, Inc. created a new subsea leader and established TechnipFMC as the only fully-integrated subsea provider. TechnipFMC has redefined subsea economics through its integrated model and accelerated technology development and innovation.

At the same time, the Company’s Onshore/Offshore business has consistently demonstrated operational excellence, successfully delivered landmark projects, built an unprecedented backlog, and positioned itself to continue capitalizing on growing demand for liquefied natural gas (LNG). The exceptional performance of TechnipFMC since the merger has made the proposed spin-off possible and, when completed, will enable the two companies to unlock additional value.

The two companies would have:

  • Distinct and expanding market opportunities and specific customer bases
  • Enhanced focus of management, resources and capital
  • Robust backlogs supporting future revenue growth
  • Strong balance sheets and capital structures tailored to individual business needs
  • Compelling and distinct investment profiles

Doug Pferdehirt, Chairman and CEO of TechnipFMC, stated, “Since the creation of TechnipFMC, we have pioneered the integrated business model for subsea and transformed our clients’ project economics. To further enhance value creation, our Board of Directors and management team have continuously evaluated strategic options and, after a comprehensive review, determined that it is in the best interest of TechnipFMC and all of our stakeholders to create two diversified pure-play leaders. We are confident that the separation would allow both businesses to thrive independently within their sectors, enabling each to unlock significant additional value.”


With approximately 15,000 employees, SpinCo would be one of the largest E&C pure-plays and is poised to capitalize on the global energy transition. SpinCo will be uniquely positioned to capture LNG opportunities as a result of its robust project delivery model, demonstrated capabilities and proven track record. In addition, the new company will benefit from its leadership position in the downstream market, as well as future growth opportunities in biofuels, green chemistry and other energy alternatives.

The company would comprise the Onshore/Offshore segment, including Genesis – a leader in front end engineering and design. SpinCo would also include Loading Systems, a leader in cryogenic material transfer products, and Cybernetix, a technology leader in process automation, that have historically been a part of the Surface Technologies and Subsea businesses, respectively.

SpinCo will be led by an experienced, proven management team. Catherine MacGregor, who currently serves as TechnipFMC’s President, New Ventures, will serve as Chief Executive Officer of SpinCo. Bruno Vibert will serve as Chief Financial Officer, and Marco Villa will serve as Chief Operating Officer. SpinCo will be incorporated in the Netherlands with its headquarters in Paris and listed on the Euronext Paris exchange. Bpifrance, a key shareholder of TechnipFMC, strongly supports the proposed transaction and recognizes SpinCo as a global leader with the potential for high value creation.


With approximately 22,000 employees, RemainCo would be a fully-integrated technology and services provider, continuing to drive energy development. The company’s role will be to support clients in the delivery of unique, integrated production solutions. As TechnipFMC has transformed the industry through its pioneering, integrated model in Subsea, RemainCo will apply the same winning formula to Surface Technologies.

As a standalone company, RemainCo will be the largest diversified pure-play in the industry. Doug Pferdehirt, Chairman and Chief Executive Officer of TechnipFMC, and Maryann Mannen, Executive Vice President and Chief Financial Officer of TechnipFMC, will continue to serve in their roles following the separation. RemainCo will remain incorporated in the United Kingdom with headquarters in Houston and listed on both the NYSE and Euronext Paris exchange.

Upon closing, RemainCo and SpinCo will have tailored capital structures and financial policies appropriate for each company’s business, and both companies are expected to have investment grade credit metrics. Both companies will be committed to disciplined capital allocation and prudent return of capital to shareholders. Both companies will have compelling and unique financial profiles well suited to their respective businesses.

(Source: TechnipFMC)

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TechnipFMC Fined for Iraq Bribes

By John Lee.

Oil services firm TechnipFMC (TFMC) has agreed to pay $296 million to resolve allegations that the company paid bribes in Brazil and Iraq.

TFMC is the product of a 2017 merger between two predecessor companies, Technip S.A. and FMC Technologies, Inc..

The admissions and court documents establish that beginning by at least 2008 and continuing until at least 2013, FMC conspired to violate the US’s Foreign Corrupt Practices Act (FCPA) by paying bribes to at least seven government officials in Iraq, including officials at the Ministry of Oil, the South Oil Company (SOC) and the Missan Oil Company (MOC), through a Monaco-based intermediary company in order to win secure improper business advantages and to influence those foreign officials to obtain and retain business for FMC Technologies in Iraq.

(Source: US Justice Dept)

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Technip wins Basra Refinery Contract

By John Lee.

France’s Technip, in partnership with UNICO, a Japanese engineering consultant, has been awarded a Project Management Consultancy (PMC) contract on a reimbursable basis, for the upgrading of the Basra refinery.

This contract, awarded by Ministry of Oil’s South Refineries Company (SRC), covers the engineering, procurement, construction, commissioning, start-up and warranty management phase of the refinery upgrading project, located in Basra.

The project has been funded by the Japan International Cooperation Agency (JICA).

The project will aim at increasing the gasoline production capacity through the installation of a new fluid catalytic cracking unit and associated units like visbreaker, hydrotreating, hydrogen plant, etc. This development is part of the Iraqi Government’s long term plan to meet increasing future demand for hydrocarbon products.

This award follows the PMC contract attributed to Technip in June 2013 for the Karbala refinery. It will be executed by Technip’s engineering center in Milton Keynes, United Kingdom, and supported by Technip PMC teams.

Nicoletta Giadrossi, President of Technip’s Region A, commented:

“We are delighted to help SRC and the Iraqi’s Ministry of Oil achieve their goals and business objectives, while meeting safety, cost, schedule and quality targets”.

Riccardo Moizo, Senior Vice President for Technip PMC, added:

“We are honoured to have been awarded this important project by SRC. This new award continues to reinforce Technip’s positioning on PMC activities. We are looking forward to assisting SRC in the development of this complex project.”

(Source: Technip)

Posted in Construction & Engineering In Iraq, Iraq Oil & Gas News 6 Comments

Technip Wins FEED Contract at Rumaila

Technip, in partnership with China HuanQiu Contracting & Engineering Corporation (HQC), has been awarded a front-end engineering design (FEED) contract for the Ar Ratawi Natural Gas Liquids (NGL) train1 project at North Rumaila in Basra.

The deal was awarded by the Basra Gas Company (BGC), a joint venture between the Iraq’s South Gas Company (51%), Shell (44%) and Mitsubishi (5%).

The project is the first of the new greenfield associated gas processing facilities that will significantly minimize gas flaring in Iraq and make more energy resources available for power and domestic use– an NGL train with nominal feed gas capacity of 530 million standard cubic feet per day. The standalone facilities will produce liquefied petroleum gas (LPG), NGL and condensate for domestic markets.

The scope of work covers the basic engineering design package of the NGL process units, utilities and the submission of an engineering procurement and construction (EPC) package.

Technip’s operating center in Abu Dhabi will execute the project, scheduled to be completed by the end of 2014.

Vaseem Khan, President of Technip in the Middle East, declared:

This award reflects Technip’s strengthened position in the Middle-East market, following several previous awards. We are proud to bring our specific technological edge and licensed innovative solutions to the downstream industry, while leveraging our 30 years presence in the region.

(Source: Technip)

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Hyundai Wins $6bn Kerbala Refinery Deal

By John Lee.

A group of companies led by Hyundai Engineering & Construction has won a $6.04-billion contract to build the new 140,000-bpd Kerbala oil refinery.

The Iraqi cabinet approved the deal between the Oil Ministry’s State Company for Oil Projects (SCOP) and the consortium on Tuesday.

Construction is to be completed within 54 months.

In June, French company Technip won the contract for project management consultancy (PMC) services for the engineering, procurement and construction (EPC) phase of the Karbala refinery.

(Sources: ConstructionWeekOnline, Iraq Oil Report)

Posted in Construction & Engineering In Iraq, Iraq Oil & Gas News 6 Comments

Reef Subsea Wins Cable Deal

Reef Subsea Dredging and Excavation (D&E) has secured a number of substantial contracts in the Middle-East and Asia Pacific as the company continues to grow its global footprint.

The Middle-East contracts will involve two teams from the company’s UK workforce managing subsea excavation work in Saudi Arabia and Iraq. The work in the Al Khafji field in Saudi Arabia, on behalf of Technip and Khafji Joint Operations (KJO), is a shore approach cable excavation in shallow waters. Specialist personnel will also be deployed for the post-lay burial of the 165mm composite cable.

The second contract is the first project for Reef Subsea in Iraqi waters working with Leighton Offshore as part of the Iraqi Crude Oil Expansion programme (ICOEEP). The work involves post lay burial of a fibre optic cable in excess of 50km in length in Iraq’s largest producing oil field.

Reef Subsea’s specialist controlled flow excavation tools, the T4000 (pictured) and Twin R2000, will be deployed for both projects, as these can work effectively on live cables and pipelines without compromising the subsea assets integrity. The company has two sets of equipment based in Abu Dhabi for operations in the UAE and surrounding areas.

Niels-Henrik Brodtkorb, Managing Director, Reef Subsea Dredging and Excavation, commented:

These substantial contract wins in the Middle East and Asia allows us to demonstrate the capabilities of our versatile subsea excavation tools.

“Our employees are highly skilled at operating these tools and bring a huge amount of experience to operations in these global industry projects.

“Increasing our presence and equipment capabilities across the world will allow us to further strengthen our reputation as a leader in subsea dredging and excavation.

(Source: Reef Subsea)

Posted in Construction & Engineering In Iraq, Iraq Oil & Gas News, Iraqi Communications News 5 Comments

Iraq Looks to Foreign Investment To Boost Oil Capacity

By Omar al-Shaher for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Technip, a French company specializing in the management of energy producing installations, received a “significant contract” in the second phase of the oil refinery project in the Iraqi province of Karbala, in what seems to be an actual manifestation of Iraq’s desire to rely on foreign investments in order to remedy the shortfall experienced by its refineries in satisfying domestic needs for petroleum derivatives.

Technip issued a statement in which it said that the Iraqi State Company for Oil Projects awarded it a “significant contract for project management consultancy services for the engineering, procurement and construction phase of the Karbala refinery.”

In a statement obtained by Al-Monitor, the French company characterized the contract as a “prize” awarded by Iraq, following the company’s execution of the Karbala refinery’s basic engineering design, which was initiated in 2010 and had an output goal of 150,000 barrels per day.

Technip describes itself as a world leader in project management, engineering and construction for the energy industry, employing more than 36,000 people working on projects in 48 countries around the world.

Iraq suffers from chronic shortages in oil derivatives resulting from its refineries’ inability to satisfy local consumer needs, particularly for mineral oil and gasoline, which forces it to import these derivatives from neighboring countries, notably Iran.

The Deputy Oil Minister for Downstream Refineries Fayadh Nima said that Iraq’s refineries now produced approximately 800,000 barrels per day.

In an interview with Al-Monitor, he said, “Iraq has three main refineries and 10 smaller ones, which produce around 800,000 barrels per day.” He emphasized that his country’s needs surpassed the output capacity of these refineries combined.

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Technip Wins Contract for Karbala Refinery

Iraq’s State Company for Oil Projects (SCOP) has awarded French company Technip a significant contract for project management consultancy (PMC) services for the engineering, procurement and construction (EPC) phase of the Karbala refinery.

This award follows the front-end engineering design (FEED) executed by Technip in 2010.

The scope of work will cover two phases:

  1. phase 1: issue of enquiries for the EPC contract, bids clarification, evaluation and contracts finalisation with the EPC contractors; and,
  2. phase 2: overall management of the EPC contract execution.

Technip’s operating center in Milton Keynes, United Kingdom will execute phase 1 of the project, which is scheduled to be completed in the second semester of 2013.

Riccardo Moizo, Technip’s Senior Vice President for PMC, stated:

We are delighted to have been awarded this project by SCOP and to participate in developing and enhancing Iraq’s refinery capabilities. This is a significant contract for Technip’s newly created PMC business unit and we believe it will open up opportunities in the near future.

(Source: Technip)

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Iraq’s Refinery Capacity, Opportunities for Investment

Delegates to CWC‘s Iraq Petroleum 2012 conference in London last week received an update on the country’s refining capacity and plans from H.E.. Dr Bayazeed Hassan Abdullah, MP, member of the Oil and Energy Committee of the Iraqi Parliament.

He said the twelve existing refineries have a combined capacity of up to 886,000 barrels per day:

  • Baiji [Bayji, Beiji] Refinery in Salahadin (pictured), with a capacity of 310k bpd;
  • Doura Refinery in Baghdad, 210k bpd;
  • Basra Refinery, 140k bpd;
  • Diwaniya Refinery, 20k bpd;
  • Kasak Refinery in Ninewa, 10k bpd;
  • Haditha Refinery in Anbar, 16k bpd;
  • Six other small refineries (Kirkuk, Syniah-Baiji, Najaf, Samawa,Nasiriyah, Maysan), with a combined capacity of between 30k and 180k bpd.

However, these plants are running at an average of 65% of design capacity, or 565k bpd, and they produce too much heavy fuel oil; only Baiji, Doura and Basrah refineries produce gasoline. As a result, Iraq continues to import refined petroleum products.

Plans for modernizing and expanding these existing refineries to produce more and better quality fuels are already underway.

In addition, four new refineries with a total capacity of 740k bpd are planned and will open for private investment:

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