July 23, 2019 / 11:03 PM / in a month

TechnipFMC awarded $7.6 billion contract for Arctic LNG-2

PARIS (Reuters) - Oil services firm TechnipFMC (FTI.N) said on Tuesday it had been awarded a major engineering, procurement and construction contract by Russia’s Novatek NVTKMM and its partners for the Arctic 2 liquefied natural gas project in western Siberia.

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

The Arctic LNG 2 project aims to develop more than 7 billion barrels of oil equivalent (boe) of resources.

Novatek holds a 60% stake in the project, while French oil and gas major Total (TOTF.PA), China’s CNPC CNPET.UL, CNOOC (0883.HK), and Japan Arctic LNG consortium each hold 10%.

Novatek said on Tuesday it had reached its target for participation in the project with the completion of stake sales, meaning it could now make a final investment decision.

The project is expected to have a total production capacity of 19.8 million tonnes per year, or 535,000 barrels of oil equivalent per day.

TechnipFMC, created by a 2016 merger of France’s Technip and U.S. rival FMC Technologies, had previously carried out design engineering and construction work on Novatek’s Yamal LNG project.

“We are extremely honoured to be entrusted with this new contract by Novatek and its partners. We are leveraging our successful track record on the Yamal LNG project and notably the modular fabrication scheme,” Nello Uccelletti, president of onshore/offshore operations at TechnipFMC, said in a statement.

In a separate statement, the company said on Tuesday its board had approved a quarterly cash dividend of $0.13 per ordinary share payable on or shortly after Sept. 4.

Reporting by Bate Felix; Editing by Tom Brown

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