Commodities News

TechnipFMC Secures $7.6 Billion Contract for Arctic LNG-2

Oil services agency TechnipFMC said Tuesday it had been awarded a major engineering, procurement and building deal by Russia’s Novatek and its companions for the Arctic 2 liquefied natural gas venture in western Siberia.

It said the consolidated deal value to TechnipFMC for Arctic LNG-2 was $7.6 billion and contained three LNG trains, each with a capability of 6.6 million tons per annum (Mtpa).

The Arctic LNG 2 venture aims to develop over 7 billion barrels of oil equivalent (boe) of resources.

Novatek owns a 60% stake in the venture, while French oil and gas leading Total, China’s CNPC, CNOOC, and Japan Arctic LNG consortium each hold 10%.

Novatek said on Tuesday it had met its target for participation in the venture with the completion of stake sales, which means it could now make a final funding decision.

The venture is predicted to have a total production capability of 19.8 million tonnes per annum, or 535,000 barrels of oil equivalent a day.

TechnipFMC, formed by a 2016 merger of France’s Technip and U.S. rival FMC Technologies, had earlier carried out design engineering and development work on Novatek’s Yamal LNG venture.

“We’re extremely honored to be committed with this new deal by Novatek and its companions. We’re leveraging our successful track record on the Yamal LNG venture and prominently the modular fabrication scheme,” Nello Uccelletti, president of onshore-offshore operations at TechnipFMC, stated in a press release.

In a separate assertion, the corporate stated on Tuesday its board had accredited a quarterly cash dividend of $0.13 per ordinary share payable on or shortly after Sept. 4.

Danielle Hollman

By Danielle Hollman

Danielle is a Market expert with vast experience in commodities. She also has expertise in marketing and international business communication in her career portfolio. She has worked with several entrepreneurs, financial services firms, and media houses. Danielle joined FBI Market News in 2018. Now, she is leading the Commodity column.

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