TechnipFMC, BP sign memorandum on 20,000 psi subsea systems
Key Facts
TechnipFMC announced it had signed a memorandum of understanding to collaborate on the supply of subsea production tree systems rated to 20,000 pounds per square inch for BP's Paleogene projects. The company said in a statement that the counterparty to the memorandum was BP Exploration & Production, a BP subsidiary. The memorandum establishes a framework for collaboration on supplying these systems as part of the companies' existing relationship in offshore project development. Its stated scope covers subsea production equipment for which the company aims to expand deployment of its standardized high-pressure solutions. The collaboration builds on the companies' previous work on the Tiber and Kaskida projects, for which TechnipFMC secured contracts.
The memorandum aims to deliver "greater schedule certainty and improved project outcomes," according to TechnipFMC's statement. These objectives rely on early collaboration between the parties and technology development, alongside standardized technologies and repeatable execution. Chief Executive Doug Pferdehirt said the memorandum reflected the company's commitment to expanding deployment of standardized high-pressure solutions. The company previously linked the Tiber contract to the reuse of engineering work and equipment being developed for Kaskida. This arrangement, according to the company's description of the earlier contract, allows the development model to be replicated within the same basin, linking the new collaboration to the parties' existing execution experience.
TechnipFMC's earlier Tiber contract is valued at between 600 million and 800 million dollars, according to the company's announcement for the project. That contract was included in inbound orders in the fourth quarter of 2025, meaning its value relates to work already awarded to the company. The earlier Kaskida contract is valued at between 250 million and 500 million dollars, according to a separate TechnipFMC statement on that project. The Tiber contract's value range is therefore above the range the company announced for Kaskida as part of its previous commercial relationship with BP. These values relate to the two earlier contracts, while the collaboration announced in the memorandum is based on a framework for supplying high-pressure production tree systems.
The Kaskida contract's scope extends beyond production systems, according to details TechnipFMC announced when the project was awarded. It includes the design, manufacture and installation of subsea umbilicals, which form part of the integrated scope of work undertaken by the company. It also includes risers and subsea flowlines, alongside the supply of production systems covered by the contract. Before the work was awarded, TechnipFMC conducted an integrated front-end engineering and design study for Kaskida, according to its statement. That study represented an earlier stage of the company's involvement in the project, before its scope expanded to the design, manufacture and installation of the offshore equipment and systems specified in the contract.
For another part of Tiber's equipment, BP also contracted the SLB OneSubsea joint venture to supply a subsea boosting system. SLB said Tiber and Kaskida use the same standardized solution for the supplier-led high-pressure subsea pumping system. The arrangement brings standardization to pumping work across the two projects, alongside the collaboration on production trees covered by TechnipFMC's memorandum. SLB OneSubsea's chief executive said subsea boosting strategies "save space on topside facilities and reduce power requirements." He thus linked the use of these systems to lower space and energy requirements at surface facilities associated with offshore projects.
The memorandum comes after TechnipFMC reported revenue of 2,763.1 million dollars in the second quarter of 2026, according to its published financial results. That compared with 2,534.7 million dollars in the same period a year earlier, an annual increase of 9.0%. In its Subsea segment, the company attributed the improvement in revenue from the previous quarter to increased project activity, particularly integrated work in the North Sea and the Mediterranean. This quarterly comparison concerns the segment's performance, while the reported annual growth rate reflects the change in the company's total revenue between the comparison periods. TechnipFMC will hold its third-quarter earnings conference call on 29 October 2026 at 8:30 a.m. New York time.