Technip Confirms Focus on FLNG

France-headquartered Technip said it is anticipating ‘an even more challenging environment in oil & gas’, launching its restructuring plan to save approximately €830 million while confirming its focus on LNG.  

‘Technip announces today that in anticipation of an even more challenging environment in oil & gas, it will accelerate its cost reduction and efficiency efforts worldwide through a restructuring plan in response to the downturn in the oil and gas market’ the French company wrote on Monday.  

The restructuring plan targets savings of €830 million, of which €700 million to be delivered in 2016 and the balance in 2017. There are one-off charges of €650 million to cover all the different aspects of today’s announcement. 

“The launch of the plan today, together with our recent initiatives, such as our Forsys Subsea Joint Venture, shows our determination to maintain this strategy which is based on a long-term vision of how Technip can be best positioned to deliver our industry’s needs, to reduce project costs and continue to create value” Thierry Pilenko, Chairman and CEO, commented. 

The plan comprise onshore, offshore, and subsea assets. Technip said it will reduce its presence in some European markets, Asia and Latin America including Brazil. Naming the North Sea, it also said that its cost reduction efforts will be focused on markets where new project awards are under pressure. 

On the other hand, it said it will reinforce its investment in FLNG.  

In May, FMC Technologies and Technip signed an agreement of form a 50/50 joint venture to launch their new project Forsys Subsea. According to the companies, the subsidiary will deliver innovative field design and technologies across the entire subsea infrastructure.