Contract worth over $1 billion comes to TechnipFMC for Shell’s recently sanctioned deepwater project in Brazil

Shortly after reporting an integrated engineering, procurement, construction, and installation (iEPCI) contract with Equinor in Norway, TechnipFMC has secured another one, this time with Shell in Brazil, worth over $1 billion.

The iEPCI contract has been awarded for Shell’s Gato do Mato greenfield development offshore Brazil, and in addition to integrated execution, the project will utilize Subsea 2.0 configure-to-order (CTO) subsea production systems.

According to TechnipFMC, combining both offerings will enable streamlined project management through a single interface and accelerate time to first oil.

The company said that the contract was a major one, meaning it is greater than $1 billion.

The news came a day after TechnipFMC announced an iEPCI contract with Norwegian state-owned energy giant Equinor for the third phase of what is said to be the third-largest oil field on the Norwegian Continental Shelf (NCS).

Jonathan Landes, President of Subsea at TechnipFMC, said: “Throughout our 30-year partnership with Shell, we have built an overwhelmingly strong record of delivery. Our success in integrating and industrializing innovative solutions gives us the utmost confidence in providing the schedule certainty Shell requires for this flagship project offshore Brazil.”

Located in the Santos Basin off the coast of Rio de Janeiro, in water depths ranging from 1,750 to 2,050 meters, the Gato do Mato field is a pre-salt gas-condensate discovery that spans two contiguous blocks: BM-S-54, a concession contract signed in 2005, and Sul de Gato do Mato, a production sharing contract (PSC) obtained in 2017.

The consortium behind the project encompasses Shell (operator with a 50% stake), Ecopetrol (30%), TotalEnergies (20%), and Pré-Sal Petróleo SA (PPSA) acting as manager of the production sharing contract (PSC).

The final investment decision (FID) for the deepwater development was reported around a week ago. The project, which will entail the installation of an FPSO designed to produce up to 120,000 barrels of oil per day, is scheduled to come into operation in 2029.