OIL services company TechnipFMC will spin off its engineering and construction operations into a separate company.
The new company, will employ around 15,000 and provide contracting services covering upstream, midstream and downstream processing facilities, and seek opportunities in LNG, biofuels, and other energy alternatives, TechnipFMC said. The new business will take with it the consultancy Genesis Oil and Gas and process automation firm Cybernetix.
The remaining firm, employing some 22,000 people, will continue to provide an integrated services and equipment offering for subsea and surface oil and gas drilling and production projects.
In 2017, Technip and FMC Technologies merged to become a fully-integrated provider of subsea oil and gas services.
“Since the creation of TechnipFMC, we have pioneered the integrated business model for subsea and transformed our clients’ project economics,” said Doug Pferdehirt, CEO of TechnipFMC. "We are confident that the separation would allow both businesses to thrive independently within their sectors, enabling each to unlock significant additional value.”
The separation is expected to be completed in the first half of 2020.
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