TechnipFMC plc FTI, a leading supplier of products, services and fully integrated technology solutions in the energy industry,has secured an integrated engineering, procurement, construction, and installation (iEPCI) contractalongside Saipem S.p.A, an Italian oilfield engineering and construction services firmfor the subsea development of TotalEnergies’ GranMorgu field on Block 58, offshore Suriname.
FTI’s Scope of Work
TechnipFMC is responsible for a subsea production system (SPS), which includes Subsea 2.0 tree systems, manifolds, connectors, and topside controls. It also provides flexible risers and umbilical equipment packages. FTI’s scope of work in the contract is valued at over $1 billion.
Saipem’s Scope of Work
Saipem’s contract covers the engineering, procurement, supply, construction, and installation of subsea infrastructure, including umbilicals, risers, and flowlines. The company is also responsible for pre-commissioning work and supporting the commissioning and start-up of the Subsea Umbilicals, Risers, and Flowlines (“SURF”) package.
SAPMF will carry out the engineering, procurement, supply, construction, and installation of 100 kilometers of subsea production flowlines (with diameters ranging between 10 inches and 12 inches) and 90 kilometers of gas and water injection lines (with diameters in the band of 8-12 inches). Moreover, the company will be responsible for the transportation and installation of flexible risers, umbilicals and other associated subsea infrastructures. The operations related to the project will be conducted at water depths of 100-1,100 meters.
Suriname's First Significant Subsea Development in Block 58
This project marks a milestone for the oil and gas industry in Suriname as it is the first notable subsea development in the region. It is aimed at increasing production from the region by connecting a network of subsea wells to a floating production, storage and offloading (FPSO) vessel. TotalEnergies has awarded SBM Offshore the contract for developing the FPSO for the GranMorgu field.
Collaboration Between FTI and Saipem
The offshore campaign for this project is expected to take place between 2027 and 2028. Saipem will utilize its S-Lay and J-Lay vessels, customizing pipeline installation to deliver the optimal solution for the campaign. The full project is anticipated to continue for up to 5 years. The first oil production from the GranMorgu field is expected in 2028.
The services provided by FTI shall ensure an optimal integration between the work scopes of both companies. This means that SURF and SPS packages provided by each of them shall work in an efficient and cohesive manner. The two companies joined forces in 2021 to form a commercial alliance aimed at combining their knowledge and expertise to deliver integrated SURF-SPS developments.
FTI’s Zacks Rank and Other Key Picks
Currently, FTI carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the energy sector are Smart Sand, Inc. SND, FuelCell Energy FCEL and Nine Energy Service NINE, each presently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Smart Sand is a low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained oil and gas market demand, SND is expected to see growing demand for its services, reflecting a positive outlook.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position the company for growth in the long run.
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