Technip (Euronext: TEC) and FMC Technologies, Inc. (NYSE: FTI) have announced that the companies will combine to create a global leader that will drive change by redefining the production and transformation of oil and gas. The combined company, which will be called TechnipFMC, would have an equity value of $13 billion based on pre-announcement share prices.

Photo credit: FMC

The companies have entered into a Memorandum of Understanding (MOU) and expect to execute a definitive business combination agreement to combine the companies in an all-stock merger transaction. Under the terms of the MOU, Technip shareholders will receive two shares of the new company for each share of Technip, and FMC Technologies shareholders will receive one share of the new company for each share of FMC Technologies. Each company's shareholders will own close to 50 percent of the combined company.

The transaction brings together two market leaders and their talented employees, building on the proven success of their existing alliance and joint venture, Forsys Subsea, uniting innovative technologies, common cultures and values, enabling rapid integration. The combined company will offer a new generation of comprehensive solutions in Subsea, Surface and Onshore/Offshore to reduce the cost of producing and transforming hydrocarbons. TechnipFMC's flexible commercial model will provide both integrated and discrete solutions to customers across the value chain. With more than 49,000 employees operating in over 45 countries, TechnipFMC generated 2015 combined revenue of approximately $20 billion and combined 2015 EBITDA of approximately $2.4 billion. As of March 31, 2016, the two companies together had consolidated backlog of approximately $20 billion.

John Gremp, Chairman and Chief Executive Officer of FMC Technologies, said, "This is a compelling combination that will create significant additional value for clients and all shareholders, by expanding the success that FMC Technologies and Technip have achieved through our alliance and joint venture, to capitalize on new opportunities and drive accelerated growth." Thierry Pilenko, Technip Chairman and Chief Executive Officer, who will serve as Executive Chairman of TechnipFMC, stated, "Technip and FMC Technologies both have long track records of innovation and commitment to helping their clients meet the challenges of the oil and gas industry. A year ago, we were at the forefront of recognizing the importance of a broader view of our clients' challenges and seized the opportunity that working together in our alliance could bring. Today we want to take this strategy further and across the full footprint of the two companies. We have complementary skills, technologies and capabilities which our customers can access on an integrated basis or separately as they prefer. Together, TechnipFMC can add more value across Subsea, Surface and Onshore/Offshore, enabling us to accelerate our growth. I am confident that we can quickly demonstrate the power of TechnipFMC to our clients, our people and our shareholders."

Doug Pferdehirt, President and Chief Operating Officer of FMC Technologies, who will serve as the CEO of TechnipFMC, added, "Our alliance has shown that as customers evaluate solutions, they are involving us in the process earlier and to a greater degree than ever before. The more they seek our recommendations and new products, the more we differentiate ourselves from the competition. This transaction will allow us to deliver even greater benefits to our customers through a broadened portfolio that provides a unique set of integrated technologies and competencies that are underpinned by a history of developing rich partnerships and creating customer success. We look forward to rapidly bringing together the outstanding employees and cultures of both companies, as well as the complementary capabilities of our organizations, to position the combined company at the forefront of a new generation of solutions for the oil and gas industry."

JDR, a leading UK based supplier of subsea umbilicals and power cables to the offshore energy industry, has been awarded a contract by GE Oil & Gas, on behalf of operator ONGC, for the Vashishta & S1 project.

The Vashishta & S1 fields are located in the KG Basin, 30 – 35 kilometers off the east coast of India, at water depths of 250 to 700 metres. JDR’s scope of supply includes the engineering, design and manufacture of 12 steel tube flying leads and associated hardware. JDR’s technical services team will also provide design analysis for the project including flow and structural analyses and free spanning vortex induced vibration (VIV) analysis.

JDR CEO, David Currie, said: “This contract highlights our world-leading expertise in the supply of specialist umbilicals and cables to the offshore energy industry. We are delighted to support GE and ONGC by providing the critical links to their subsea control system. This contract award is testament to our expert teams who are leading the charge in developing advanced and innovative technologies for the offshore energy sector.”

Flying leads are used to connect subsea trees to umbilical termination arrangements, manifolds and subsea distribution units. They will be manufactured at JDR’s state-of-the-art manufacturing facility in Hartlepool, UK, where the company is currently undertaking a major site expansion, including the commissioning of a world-leading helical assembly machine and additional covered large capacity carousels.

Metocean Services International (MSI) has recently completed the first annual service of McDermott Australia Pty Ltd’s (MAPL) AXYS WatchMate™ current and wave buoy. The buoy was sold to MAPL in 2014 accompanied by an installation and service contract for an initial 3 years.

The buoy is installed in 270m of water in the ICHTHYS field. The INPEX operated ICHTHYS LNG Project in the Browse Basin offshore Western Australia is ranked amongst the most significant oil and gas projects in the world. In field, construction is well underway with the first production targeted at third quarter 2017.

Weight on deck: Photo courtesy: McDermott

Real-time meteorological, current and directional spectral wave data is telemetered back to MSI via Inmarsat satellite and posted onto a client specific website. Data is also posted to an FTP site to allow MAPL personnel to use it to support the ongoing infield construction where accurate, reliable and timely data is essential to ensure safe operations.

The WatchMate™ buoy is a solar powered precision instrument incorporating advanced technologies that make it an easy to use, reliable and rugged buoy for accurate measurement of directional waves. The wave sensor unit comprises three accelerometers, three rate gyros, a fluxgate compass, and the proprietary TRIAXYS™ Processor. Current data is provided via a fully integrated Nortek 600KHz profiler whilst meteorological data can be measured using a variety of sensors.

The WatchMate™ was specifically proposed to MAPL at the tendering stage due to the extreme local metocean conditions at site meaning a standard wave buoy was unlikely to survive. The WatchMate’s™ additional flotation combined with a site specific mooring designed by AXYS make it an ideal solution for these trying conditions proved by the exceptional data return provided over the last 12 months.

The project is expected to last 3 years before the buoy is recovered by MAPL following completion of their offshore work.

A spokesperson for MAPL commented “Reliable and accurate data from the WRB was essential for our offshore operations, as limiting sea states were critical for a number of the structure and spool installations. The WRB provided by Metocean Services International has been very reliable, provided the accurate data required, and the support provided from Metocean Services International for maintenance and any troubleshooting has been very professional and punctual.”

MSI owns and operates a number of similar systems so was confident in its recommendation of the Watchmate. Having been AXYS’s exclusive representative for marine environmental monitoring systems in Australia since 2009, MSI has extensive 'hands on' experience, as both an owner and user, with the AXYS product line and is therefore well qualified to fully support the end user. MSI systems are available on either a purchase or a rental basis and all measurement equipment can be deployed individually or integrated as part of a larger metocean system.

LQT Industries, LLC, a full-service provider of high quality accommodation facilities, design-build construction services, and support services to the oil and gas industry, has been awarded the construction of modular buildings from four (4) companies in the upstream and downstream market.

“We are pleased to continue to be a key supplier to our clients in a difficult market,” said John Alford, President of LQT Industries. “We appreciate the confidence our customers show in us and continue to gain customers due to our design-build capabilities and our on-time delivery of projects.”

The fabrication and outfitting of these customized buildings will be completed at LQT’s Fabrication Facility in Abbeville, LA, which specializes in designing and fabricating various types of modular structures including blast rated buildings, MCC buildings, and accommodation buildings.

Wood Group has been awarded an evergreen master services agreement (MSA) by Statoil to support the life cycles of its offshore and onshore facilities. Work and services covered by the MSA include engineering studies, detailed engineering, procurement services and management assistance services.

“This MSA reflects Wood Group’s strong relationship with Statoil,” stated Robin Watson, chief executive. “We look forward to leveraging our global knowledge and expertise to provide Statoil with the best technical services for its facilities.”

Wood Group has supported Statoil for many years. Recent work includes four subsea contracts, support for the Statoil Technical Efficiency Program (STEP), and providing maintenance and modification services to four installations on the Norwegian continental shelf (NCS).

Dynamic Industries International LLC. (Dynamic), a full service brownfield construction, fabricator, hook-up and commissioning contractor to the global offshore oil and gas industries, has announced that their Angolan affiliate, Dynamic Angola Contractors (DAC) based in Luanda, Angola has been awarded a contract to provide general construction and fabrication services in support of ongoing operations for a major oil and gas operator. The contract is expected to kickoff 4Q16 and last four (4) years.

Pierre Allard, Country Manager for DAC said, “This award is a great win for DAC and will provide another platform for DAC’s continued development and growth of our skilled Angolan workforce and investment for additional local infrastructure to support this activity”.

Since 2014 Bibby Offshore has invested heavily on its commitment to the workforce of tomorrow by their ongoing support and training of six young ROV apprentices. The apprentices have experienced a variance of training, internally at Bibby Offshore`s workshop facility and externally through the vast network of suppliers and customers. This has allowed the apprentices to gain a great overall insight into the range of offshore services that Bibby Offshore provide. Aleron Subsea has recognised these efforts and is now engaged in supporting Bibby Offshore with their ongoing training.

Managing Director Mike Bisset said: “We understand the need for high quality training of younger staff members and wanted to assist Bibby offshore where we could. We take the apprentices on a rotation in pairs where they spend time working on our ROV’s and ROV Tooling under the direction of our senior technician’s. We have also set up hour long structured lunch and learn sessions each day with Dan Fjellroth who was the senior ROV trainer at Technip Offshore, previously involved in setting up Technip's ROV technicians competence scheme and source in conjunction with the ROV Resource manager complementary courses suitable for ROV Personnel's professional development.

The training partnership has been ongoing successfully since Q4 2015 as is due to continue throughout 2016.

Aberdeen-headquarted subsea cable and connector specialist Hydro Group plc announces multiple Asia Pacific Business Partner agreements as the firm continues strategic growth in the region.

As part of international expansion plans in 2013 the firm formed its Singapore based division, Hydro Group Asia, which has shown an annual increase of sales in the region of over £1.5M. The five new Business Partner agreements with Uni-One in Taiwan, ISL in China, Oceanpixel in the Philippines, PT Indonesia in Indonesia and DKHG in Vietnam will aid Hydro Group’s cabling interconnect solutions presence in these important markets.

L-R) Doug Whyte, Hydro Group managing director and Steve Ang, Hydro Group Asia technical sales manager.

Steve Ang, Hydro Group Asia technical sales manager, said: “Entering into these new agreements allows us to improve our network across South East Asia, as part of our continued growth plans for the region. As we specialise in custom designs, improving our network also means a greater level of contact with our customers, which is vital for our hands on design and engineering approach.”

Hydro Group is at the forefront in the development and innovation of subsea product technologies, with involvement from prototype concept through to design, manufacture and project management.

Doug Whyte, Hydro Group managing director, said: “Asia currently represents Hydro Group’s second largest export market, with significant growth in demand for our range of subsea optical cables, electrical cables and connectors from defence markets and increasingly energy customers, due to the expansion of exploration activities in the region.

“These new agreements allow us to increase efficiency and ensure regular interaction with customers across the region. We look forward to working with our new Business Partners and fulfilling increasing demand for our products.”

Helix Energy Solutions Group, Inc. (NYSE:HLX) has announced that the Q5000 commenced operations and is working on contracted rates after resolving the previously disclosed start-up issues related to certain subsea equipment.

Although commercial discussions regarding this matter are not concluded and therefore there is still uncertainty surrounding the full financial impact of the equipment start-up issues, the Company currently believes that the range of its previously issued guidance should accommodate this impact. The Company will update guidance at its next earnings release.

McDermott International, Inc. (NYSE:MDR) has joined with 14 other leading offshore companies in signing a Memorandum of Understanding (MOU) to establish engineering industry standards.

Known as the Standardization Unified Joint Industry Project (JIP), the one-year agreement sets out the terms and conditions upon which the signing parties shall establish industry standards for offshore engineering. The objective is to reduce cost and increase predictability without compromising safety in international offshore oil and gas engineering, procurement and construction (EPC) topside projects by using standardized bulk materials and equipment, construction and qualification procedures, and documentation requirements.

Vaseem Khan, Professional Engineer and McDermott Vice President, Global Engineering, signs the Joint Offshore Engineering Standardization Agreement

As part of the agreement, all parties also agreed to comply with all applicable laws, rules and regulations in the performance of the MOU and in particular with all applicable anti-trust, anti-competition and anti-bribery laws.

Joining McDermott for the signing ceremony at Offshore Technology Conference, Houston, Texas were officials from offshore engineering companies Wood Group Mustang, DNV Korea Limited, Technip, Samsung Heavy Industries Co., Ltd. (SHI), Daewoo Shipbuilding and Marine Engineering Co., Ltd. (DSME), Hyundai Heavy Industries Co., Ltd. (HHI), Royal Dutch Shell, Chevron and MODEC International. Classification societies signing the agreement were American Bureau of Shipping (ABS), Bureau Vitas (BV), Korea Offshore & Shipbuilding Association (KOSHIPA), Korea Marine Equipment Research Institute (KOMERI) and Lloyd’s Register.

Vaseem Khan, Vice President, Engineering for McDermott, said that McDermott welcomes the opportunity to partner with stakeholders, customers and industry peers ”to craft standards that deliver sustainable cost reductions without compromise to safety or operability.”

“McDermott, with its unique and worldwide engineering-through-installation expertise is well placed to understand the challenges of standardization and has built its reputation for engineering excellence over the past 94 years,” Khan said. “As the industry moves to arrest and reverse the cost and schedule inflation of the past decade, a core element is offshore and subsea product standardization with a move to agnostic solutions which are industry specific but operator independent.”

3sun Group, a specialist provider of products and services to the global energy industry, has opened a new base in Hull which aims to provide up to 50 jobs locally. The expansion strengthens the Group’s strategy to become a leading supplier of installation, inspection and maintenance services for the offshore wind industry in the UK and Europe.

3sun Group will support local energy firms such as Siemens who have recently invested in the region as part of their commitments following a number of the up and coming offshore wind contracts off the UK coast.

3sun Group Technician

Commenting on the evolution of 3sun Group, CEO Graham Hacon, said: “Our premises in Hull allows us to continue to advance our strategic growth plans in the UK. We’re looking forward to an exciting new chapter, strengthening our position as experts in the offshore wind industry. By providing a local base, we are ensuring that we continue to exceed our customers’ expectations and meet the demand for services in the region.”

Recruitment will begin this July, with the aim to provide positions for 50 local 3sun Group employees. The Group will provide specialist training to the new employees at their Hull base through in-house training provider 3sun Academy.

Graham added: “We are committed to employing and developing a local workforce and our core electrical/mechanical technician roles will require the expertise of those who live in close proximity to Hull.”

Since inception in 2007, 3sun Group has grown rapidly to now employ over 280 people across the group, and has earned a global reputation for resolving some of the key energy engineering challenges facing the energy sector. The opening of the Hull base coincides with the two-day offshore wind event, Offshore Wind Connections (OWC) 2016 held at the Bridlington Spa where 3sun Group is exhibiting.

Dropped objects – still happening; and still harming – we must never expose ourselves, or others, to the risk of dropped or falling objects. That’s the message in a new video now available to watch on the International Marine Contractors Association (IMCA) website. The short, and highly emotive video, highlights the importance of safe working practices, not only to offshore personnel, but to their families at home.

The video was prepared by Technip with help from Atlas; and as Technip’s Marine Operations Services QHSE Director, Pete Somner, and Chairman of IMCA’s Marine Division Management Committee, says on the video: “It is by better understanding of our processes and correct use of tools and equipment that we can ensure everyone returns home safely.”

Richard Benzie, Technical Director, IMCA

The DROPS Forum has requested that the video be made available across the industry to share good practice, and this has seen Subsea UK, Oil & Gas UK (OGUK) and now IMCA all spreading the word. It is freely available here

“We agree wholeheartedly with the sentiments Pete Somner expresses on the video,” says Richard Benzie, Technical Director of IMCA. “We only have to look at our own safety and environmental statistics for 2015, which will be published in full by mid-June, to see that being struck by moving/falling objects was a significant cause of Lost Time Injuries (LTIs), accounting for 20% of the total reported in the year, to know how important it is to keep stressing that more care must be taken.

“I know members will agree that this kind of collaborative approach to safety is cost-effective and worthwhile. We, and especially our Safety, Environment and Legislation (SEL) Core Committee, would like to thank Technip for making the video so widely available.”

Neptune announces it has been awarded a contract for the provision of 350 concrete mattresses by McDermott Australia Pty Ltd (McDermott International (NYSE: MDR)).

The mattresses, which will be utilized for flowlines walking mitigation on the INPEX operated Ichthys LNG project, will be manufactured at Neptune’s yard in Batam utilizing heavy density concrete and will weigh approximately 60 ton each in the air. Works commenced in April 2016 under an accelerated production schedule.

Neptune Chief Executive Officer, Robin King, said “the award of this contract follows the successful completion of other related scopes of work for McDermott on the Ichthys project by our stabilization service line. Additionally, Neptune has also performed survey and ROV campaigns on this project in recent years and we are pleased to provide ongoing support to McDermott on this milestone development.”

Subsea IMR provider, N-Sea and Subsea Projects and Engineering provider, DOF Subsea have entered into a two-year cooperation agreement to provide an Integrated Saturation (SAT) Dive Service.

The Cooperation agreement reflects both companies’ strategic decision to increase their overall service offering through Saturation diving across Europe, Africa, and Mediterranean.

Skandi Achiever

The principles of the agreement are set out with DOF Subsea providing the Dive Support Vessel, Skandi Achiever, whilst N-Sea will provide saturation diving resources. Project Management, Engineering and Diving Manual/Procedures will be provided through an integrated team. N-Sea chief operating officer Roddy James said: “This Cooperation agreement with DOF Subsea reinforces N-Sea’s key objective; to fully appreciate our clients’ requirements and provide them with the safe, sound and swift service they have come to expect.

“The MOU allows both N-Sea and DOF Subsea to offer an integrated - and highly efficient - SAT diving service to our client; something we regard as particularly important in the context of current market conditions.”

Commenting on the agreement, Robert Gillespie, managing director of DOF Subsea UK Ltd Services said: “We are very excited to work with our partner N-Sea. Teaming up with N-Sea to provide an Integrated Diving Solution will enable us to provide yet another service offering from one of our high specification vessels, namely the Skandi Achiever.

“This Cooperation Agreement exemplifies both N-Sea and DOF Subsea commitment to the Subsea market and reflects our desire to collaborate with companies to the benefit of our respective organisations and clients.”

U.S. Secretary of Commerce, Penny Pritzker, has presented LAGCOE (Louisiana Gulf Coast Oil Exposition) with the President’s ‘E’ Award for Export Service at a ceremony in Washington, DC. The President’s ‘E’ Award is the highest recognition any U.S. entity can receive for making a significant contribution to the expansion of U.S. exports.

In her congratulatory letter to the company announcing its selection as an award recipient, Pritzker said, “LAGCOE has demonstrated a sustained commitment to export expansion. The ‘E’ Awards Committee was very impressed with LAGCOE’s work to promote sales opportunities for oil and gas companies in international markets. The company’s extensive support of matchmaking activities was also particularly notable. LAGCOE’s achievements have undoubtedly contributed to national export expansion efforts that support the U.S. economy and create American jobs.”

From left to right: U.S. Secretary of Commerce, Penny Pritzker, presents President’s ‘E’ Award for Export Service to Angela Cring, Executive Director, LAGCOE, and Claire Thom, Industry Relations Director, LAGCOE.

LAGCOE, located in Lafayette, Louisiana, is a non-profit organization which supports the stability and growth of energy companies (in the U.S. and globally) through a biennial exposition and conference and ongoing programs. LAGCOE’s presentations, receptions, luncheons and programs promote education about new technologies and ventures, and provide invaluable opportunities for energy companies to display their products and network with potential buyers.

Angela Cring, executive director, LAGCOE, said, “We are thrilled to receive this recognition of our hard work in assisting U.S. companies with their international business development efforts; reducing barriers to foreign markets and opening the door to more trade around the world. The combined efforts of our international committee, LAGCOE volunteers, staff and community partners play a major role in effectively serving our companies. We look forward to continuing to grow our international business development programming to further assist energy companies with export efforts.”

LAGCOE has increased the focus on international expansion annually since 2003 and has been selected to participate in the Department of Commerce International Buyer Program since 2007. Statistics from LAGCOE’s most recent biennial exposition tracks increasing efforts to support U.S. companies’ export success. As a result of this extensive outreach, countries with international buyers attending LAGCOE grew from 26 in 2011 to 40 in 2015. At the most recent exposition in 2015, international buyers from 40 countries attended LAGCOE and 71 counseling sessions were held with 28 U.S. companies. Additionally, 95 international companies met in 286 business-to-business meetings with U.S. exporters.

In 1961, President Kennedy signed an executive order reviving the World War II ‘E’ symbol of excellence to honor and provide recognition to America's exporters. Secretary Pritzker honored 123 U.S. companies with the President’s ‘E’ Award for their outstanding work to reduce barriers to foreign markets and to open the door to more trade around the world.

In 2015, U.S. exports totaled $2.23 trillion, accounting for nearly 13 percent of U.S. GDP. Nationally, exports contributed to the U.S. economy, supporting an estimated 11.5 million jobs.

U.S. companies are nominated for the ‘E’ Awards through the Department of Commerce’s U.S. Commercial Service office network, located within the Department’s International Trade Administration, with offices in 108 U.S. cities and more than 70 countries. Criteria for the award is based on four years of successive export growth and case studies that demonstrate valuable support to exporters, resulting in increased exports for the company’s clients.

For more information about the ‘E’ Awards and the benefits of exporting, visit www.export.gov.

Hoover Container Solutions Norway AS (“Hoover” or the “Company”), a subsidiary of Hoover Group, Inc., and Consult Supply, a Hoover company, have appointed Tor Olav Schibevaag as managing director for Europe and Kjetil Skaaren as general manager for Norway. Jan Sekse, vice president global procurement, will continue to support the efforts of the Hoover Norway management team.

Tor Olav Schibevaag

Schibevaag will report to Hoover’s president, Paul Lewis, and joins Hoover with more than 12 years experience from Euro Offshore, where he developed and led the company as one of the leading cargo carrying unit (CCU) rental businesses in Norway.

Lewis said, “Tor Olav’s intimate knowledge of the CCU rental market will support Hoover’s position as a true market leader in Norway and globally. As an experienced leader with a history of developing and managing successful businesses within the oil and gas industry, he has a successful track record of implementing business process improvements and defining strategic direction.”

Schibevaag commented, “Hoover Norway has been active in the North Sea for more than 20 years, and continues to invest in the equipment and the people to serve this region. I look forward to supporting the development of Hoover and the team throughout the business.” Reporting to Schibevaag as general manager for Norway, Kjetil Skaaren has more than 15 years of experience in effectively managing and building highly complex and detailed projects for the oil and gas market.

Jan Sekse, vice president global procurement, will continue to support the efforts of Hoover Norway, providing input on relationships and design criteria for specialized and standard equipment.

The Hoover Norway management team is working on a global project to standardize the worldwide Hoover rental fleet design and procurement of cargo carrying units, chemical tanks and related offshore equipment. When this project is complete, Hoover will offer a global library of all DNV 2.7-1 type approvals and designs that specifically meet the requirements and standards for each geographical market the company serves. This directive will also serve as the basis for selecting partners to manufacture Hoover products, which will in turn drive lower cost and improve Hoover’s competitive position.