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Technip tackles the downturn

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Oilfield Technology,

“The best things this industry has done is when the price is low.” It’s an optimistic statement from Rasmus Sunde, CEO of Forsys Subsea, but one which reinforced the prevailing positive outlook at a Technip press briefing on Tuesday. Whilst all present were in agreement that troubled times lie ahead for the oil and gas industry, the focus of the event was emphasising the opportunities for collaboration that have arisen as a result of the prolonged downturn in the upstream sector.

According to Thierry Pilenko, CEO of Technip, the company started seeing signs of something changing as far back as Q2 2014. In July 2014, in spite of having a robust set of results, the company started to recognise a change in the way clients were reacting to the market at US$100 - 110 bbl. These warning signals prompted Technip to swiftly accelerate cost reduction, reducing its workforce by an excess of 6000 staff, cutting back on its fleet and implementing plans for a restructuring of offshore projects. This early engagement, means that Technip are on target to deliver €700 million in cost savings in 2016, assures Pilenko.

The success of Technip’s recent alliance with Forsys Subsea, and engineering consultancy business Genesis, is a testament to the benefits of collaboration in today’s harsh climate. These joint venture partners are working on delivering new technologies to generate cost savings in offshore projects. Formed just five months ago, Forsys Subsea has committed to optimising life of field and has already revealed its first two, unnamed contracts, one as a conceptual greenfield study and the second a front end study for a brownfield development.

Genesis, meanwhile has been focusing on ensuring that subsea projects are viable to reduce the instances of developments running massively over budget and schedule, as was the case in two of Technip’s recent ventures, Kashagan and Gorgonun. Genesis has been working with an as-yet-unnamed subsurface company to help integrate surface and subsurface when it comes to project concepts.

Edited by Louise Mulhall

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