Technip
Encyclopedia
Technip is a provider of project management
, engineering
, and construction
services for the oil and gas industry
, headquartered in Paris
, France.
The company designs and builds high-technology industrial
installations, such as subsea
equipment and platforms
, and onshore
mega-complexes for the oil
, gas
and petrochemical
sectors. It operates in three segments: Subsea
, Offshore
and Onshore
. The company's main subsidiaries are Technip France, Technip Italy SpA, Technip UK Limited, Technip Geoproduction Malaysia Sdn Bhd, Flexibras Tubos Flexiveis Limitada and Technip USA Inc. As of August 2009, the company has a fleet of 17 vessels (19 in 2010) specialized in subsea pipelay, subsea construction and diving support.
It is listed on the Euronext Paris
stock exchange
. The CEO is Thierry Pilenko.
and Asia
During this period, Coflexip – a firm specialized in the design, manufacture and supply of flexible subsea flowlines– is created by the IFP
(French Petroleum Institute) and opens a flexible flowline manufacturing plant in Le Trait, France, as well as offices in Houston, Aberdeen
and Rio de Janeiro
.
Petro-Canada, which had been using Technip for consulting and repair work, invested in the company during its mid-1980s crisis. The French government soon stepped in, however. The oil company Société National Elf Aquitaine ended up with about one-third of shares. IFP retained a similar holding. The remainder was held by the TOTAL
oil company, Gaz de France, and some French banks, which had written off loans worth FRF 428 million in the restructuring.
Technip was soon in the black again. Turnover reached FRF 7 billion in 1986, with a net profit of FRF 30 million. Hydrocarbons and bulk chemical work accounted for half of the group's business. By the end of the decade, Technip had joined the Soviet Union in an engineering joint venture and was building a number of plants in China. It also established a branch office in Abu Dhabi
that would over the course of a couple of decades develop a considerable design capacity. By 1990 Technip counted more than 1,000 contract awards in 85 countries. Sales exceeded FRF 7 billion ($1 billion) in the early 1990s and the company was profitable. It had 5,400 employees, more than half of them overseas. According to Reuters, international work was soon accounting for 92 percent of turnover.
. Coflexip acquires Stena Offshore while Technip becomes a world-leading engineering group through the acquisition of companies with strong technological expertise: Speichim, Krebs and KTI. Established in the United States
, KTI enables Technip to set up in North America
.
In October 2001, Technip acquired a majority (98.36 percent) holding in Coflexip as well as a controlling interest in ISIS, a holding company that formerly had been owned by the national oil institute IFP. The group was subsequently known as Technip-Coflexip for a couple of years. Coflexip had itself made a major acquisition in January 2001, buying Aker Maritime's Deepwater Division.
Coflexip was merged with Technip in July 2003, when the group name went back to simply Technip. The company's corporate identity was updated, and three Paris offices employing 2,700 people consolidated into one tower in the business center La Défence. During the year, Technip Germany launched a joint venture with a unit of Russia's Lukoil
.
With net sales of FRF 5.1 billion in 2004, the company was counted among the top five full-service engineering and construction firms for the hydrocarbon/petrochemical industry, which accounted for 95 percent of revenues.
Technip specialized in lump sum turnkey (LSTK
) projects for major oil companies and governments in emerging markets, a business that was proving less attractive to U.S. companies. Technip continued to be heavily involved in the Middle East. Qatargas II, a colossal $4 billion LNG joint venture with Japan's Chiyoda Corporation
, was launched toward the end of 2004. An executive told Middle East Economic Digest that the company had traditionally lost out to low-cost Japanese companies in the Gulf's LNG business. After acquiring Coflexip, Technip pushed into Egypt's offshore market, while it withdrew from Iraq, where it once had a thriving presence, due to security and political issues.
Business Week Online observed that Technip was poised to profit from high oil prices due to renewed interest in oil production and development. At the same time, it avoided the more risky exploration side of the business. The company also was studying opportunities outside the energy sector, in fields such as fertilizers and life sciences. It was putting its Speichim treatment technology to use in ethanol and biodiesel
plants.
The Chairman & CEO is assisted in his management responsibilities by the EXCOM comprising the two Chief Operating Officers, the Chief Financial Officer, the Director of Human Resources, the General Counsel and two other senior executives from the operational business.
The members of the Executive Committee are:
The Chief Operating Officers (COOs), are responsible for the entire operational organization of their respective division covering the business and all execution resources.
Reporting to the COOs are:
7 Regions that are fully accountable for projects and client relations;
an integrated business unit in charge of Subsea assets and technologies;
9 Product Business Units providing expertise to the Regions
The Group's corporate divisions –Finance and Control, Human Resources, General Counsel and Communications, QHSE, Security, and Risk Management– support the Regions and Business Units and report to the Chairman and CEO.
The Technip share is listed on Euronext Paris and on the American over-the-counter market.
The Technip share is included in the Dow Jones Sustainability Index
and the Low Carbon 100 index and the ASPI Eurozone.
, power
, and infrastructure
.
Project management
Project management is the discipline of planning, organizing, securing, and managing resources to achieve specific goals. A project is a temporary endeavor with a defined beginning and end , undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value...
, engineering
Engineering
Engineering is the discipline, art, skill and profession of acquiring and applying scientific, mathematical, economic, social, and practical knowledge, in order to design and build structures, machines, devices, systems, materials and processes that safely realize improvements to the lives of...
, and construction
Construction
In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of human multitasking...
services for the oil and gas industry
Petroleum industry
The petroleum industry includes the global processes of exploration, extraction, refining, transporting , and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline...
, headquartered in Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
, France.
The company designs and builds high-technology industrial
Industry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...
installations, such as subsea
Subsea
Subsea is a general term frequently used to refer to equipment, technology, and methods employed in marine biology, undersea geology, offshore oil and gas developments, underwater mining, and offshore wind power industries.- Oil and gas :...
equipment and platforms
Oil platform
An oil platform, also referred to as an offshore platform or, somewhat incorrectly, oil rig, is a lаrge structure with facilities to drill wells, to extract and process oil and natural gas, and to temporarily store product until it can be brought to shore for refining and marketing...
, and onshore
Onshore
Onshore is a term used in finance to denote the jurisdiction in which a company is domiciled and in which it pays a significant rate of tax. It is the opposite of offshore, which denotes a tax haven...
mega-complexes for the oil
Oil
An oil is any substance that is liquid at ambient temperatures and does not mix with water but may mix with other oils and organic solvents. This general definition includes vegetable oils, volatile essential oils, petrochemical oils, and synthetic oils....
, gas
Gas
Gas is one of the three classical states of matter . Near absolute zero, a substance exists as a solid. As heat is added to this substance it melts into a liquid at its melting point , boils into a gas at its boiling point, and if heated high enough would enter a plasma state in which the electrons...
and petrochemical
Petrochemical
Petrochemicals are chemical products derived from petroleum. Some chemical compounds made from petroleum are also obtained from other fossil fuels, such as coal or natural gas, or renewable sources such as corn or sugar cane....
sectors. It operates in three segments: Subsea
Subsea
Subsea is a general term frequently used to refer to equipment, technology, and methods employed in marine biology, undersea geology, offshore oil and gas developments, underwater mining, and offshore wind power industries.- Oil and gas :...
, Offshore
Offshore (hydrocarbons)
"Offshore", when used relative to hydrocarbons, refers to an oil, natural gas or condensate field that is under the sea, or to activities or operations carried out in relation to such a field...
and Onshore
Onshore (hydrocarbons)
Onshore, when used relative to hydrocarbons, refers to an oil, natural gas or condensate field that is under dry land or to activities or operations carried out in relation to such a field.-References:* *...
. The company's main subsidiaries are Technip France, Technip Italy SpA, Technip UK Limited, Technip Geoproduction Malaysia Sdn Bhd, Flexibras Tubos Flexiveis Limitada and Technip USA Inc. As of August 2009, the company has a fleet of 17 vessels (19 in 2010) specialized in subsea pipelay, subsea construction and diving support.
It is listed on the Euronext Paris
Euronext Paris
Euronext Paris is France's securities market, formerly known as the Paris Bourse, which merged with the Amsterdam, Lisbon and Brussels exchanges in September 2000 to form Euronext NV, which is the second largest exchange in Europe behind the UK's London Stock Exchange...
stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
. The CEO is Thierry Pilenko.
1958
Technip was established in 1958 by IFP, Institut Français du Pétrole, as Compagnie Française d'Etudes et de Construction Technip.1960’s
First series of international successes with the completion of projects in AfricaAfrica
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...
and Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
1970’s
Technip becomes an international group with the creation of an office in Rome and the creation of Technip Geoproduction, a subsidiary specialized in hydrocarbon field equipment.During this period, Coflexip – a firm specialized in the design, manufacture and supply of flexible subsea flowlines– is created by the IFP
IFP
IFP can stand for:* International Federation of Poker* Interwise Food Portal* Independent Feature Project* "The Illinois Functional Programming Interpreter", A.D. Robison, Proc 1987 SIGPLAN Conf on Interpreters and Interpretive Techniques , pp...
(French Petroleum Institute) and opens a flexible flowline manufacturing plant in Le Trait, France, as well as offices in Houston, Aberdeen
Aberdeen
Aberdeen is Scotland's third most populous city, one of Scotland's 32 local government council areas and the United Kingdom's 25th most populous city, with an official population estimate of ....
and Rio de Janeiro
Rio de Janeiro
Rio de Janeiro , commonly referred to simply as Rio, is the capital city of the State of Rio de Janeiro, the second largest city of Brazil, and the third largest metropolitan area and agglomeration in South America, boasting approximately 6.3 million people within the city proper, making it the 6th...
.
1980’s
The company underwent restructuring and rounds of layoffs in the mid-1980s. Technip lost FRF 1.42 billion ($148 million) in 1984, when it had about 2,750 employees. They were on strike in January 1985 to protest job cuts. Company president Pierre-Marie Valentin told Platt's Petrochemical Report that the problems were due to Technip's high costs and relatively narrow range of process services. He added that the French engineering sector was in need of consolidation. Technip was able to take over competitor Creusot-Loire Entreprises (CLE), the project engineering unit of Creusot Loire S.A., during the industry downturn. CLE also was making layoffs, cutting its 1,100-strong workforce by a third.Petro-Canada, which had been using Technip for consulting and repair work, invested in the company during its mid-1980s crisis. The French government soon stepped in, however. The oil company Société National Elf Aquitaine ended up with about one-third of shares. IFP retained a similar holding. The remainder was held by the TOTAL
Total
-Mathematics:*Total, the summation of a set of numbers* Total function, a type of partial function in mathematics* Total order, a common total relation in mathematics* Total relation, a type of binary relation in mathematics-Business and enterprise:...
oil company, Gaz de France, and some French banks, which had written off loans worth FRF 428 million in the restructuring.
Technip was soon in the black again. Turnover reached FRF 7 billion in 1986, with a net profit of FRF 30 million. Hydrocarbons and bulk chemical work accounted for half of the group's business. By the end of the decade, Technip had joined the Soviet Union in an engineering joint venture and was building a number of plants in China. It also established a branch office in Abu Dhabi
Abu Dhabi
Abu Dhabi , literally Father of Gazelle, is the capital and the second largest city of the United Arab Emirates in terms of population and the largest of the seven member emirates of the United Arab Emirates. Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western...
that would over the course of a couple of decades develop a considerable design capacity. By 1990 Technip counted more than 1,000 contract awards in 85 countries. Sales exceeded FRF 7 billion ($1 billion) in the early 1990s and the company was profitable. It had 5,400 employees, more than half of them overseas. According to Reuters, international work was soon accounting for 92 percent of turnover.
1990’s
Technip is listed on the Paris Stock Exchange and Coflexip is listed on the New York Stock ExchangeNew York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
. Coflexip acquires Stena Offshore while Technip becomes a world-leading engineering group through the acquisition of companies with strong technological expertise: Speichim, Krebs and KTI. Established in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, KTI enables Technip to set up in North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
.
2000’s
Sales were a little shy of FRF 3 billion in 2000. In April, Technip acquired an initial 29.7 percent investment in Coflexip, an offshore construction specialist.In October 2001, Technip acquired a majority (98.36 percent) holding in Coflexip as well as a controlling interest in ISIS, a holding company that formerly had been owned by the national oil institute IFP. The group was subsequently known as Technip-Coflexip for a couple of years. Coflexip had itself made a major acquisition in January 2001, buying Aker Maritime's Deepwater Division.
Coflexip was merged with Technip in July 2003, when the group name went back to simply Technip. The company's corporate identity was updated, and three Paris offices employing 2,700 people consolidated into one tower in the business center La Défence. During the year, Technip Germany launched a joint venture with a unit of Russia's Lukoil
LUKoil
Lukoil/LUKoil ; ) is Russia's second largest oil company and its second largest producer of oil. In 2009, the company produced 97.615 million tons of oil; ....
.
With net sales of FRF 5.1 billion in 2004, the company was counted among the top five full-service engineering and construction firms for the hydrocarbon/petrochemical industry, which accounted for 95 percent of revenues.
Technip specialized in lump sum turnkey (LSTK
LSTK
LSTK stands for Lump Sum Turn Key.In the construction industry, LSTK combines two concepts. The LS part refers to the payment of a fixed sum for the delivery under e.g. an EPC contract. The financial risk lies with the contractor. TK specifies that the scope of work includes start-up of the...
) projects for major oil companies and governments in emerging markets, a business that was proving less attractive to U.S. companies. Technip continued to be heavily involved in the Middle East. Qatargas II, a colossal $4 billion LNG joint venture with Japan's Chiyoda Corporation
Chiyoda Corporation
is a large Japanese engineering company specialising in industrial facilities, particularly oil refineries and LNG facilities. Most of its business takes place outside Japan, normally in the Middle East....
, was launched toward the end of 2004. An executive told Middle East Economic Digest that the company had traditionally lost out to low-cost Japanese companies in the Gulf's LNG business. After acquiring Coflexip, Technip pushed into Egypt's offshore market, while it withdrew from Iraq, where it once had a thriving presence, due to security and political issues.
Business Week Online observed that Technip was poised to profit from high oil prices due to renewed interest in oil production and development. At the same time, it avoided the more risky exploration side of the business. The company also was studying opportunities outside the energy sector, in fields such as fertilizers and life sciences. It was putting its Speichim treatment technology to use in ethanol and biodiesel
Biodiesel
Biodiesel refers to a vegetable oil- or animal fat-based diesel fuel consisting of long-chain alkyl esters. Biodiesel is typically made by chemically reacting lipids with an alcohol....
plants.
Organization
Thierry Pilenko was named Chairman and CEO of Technip in April 2007 and reappointed on 2011.The Chairman & CEO is assisted in his management responsibilities by the EXCOM comprising the two Chief Operating Officers, the Chief Financial Officer, the Director of Human Resources, the General Counsel and two other senior executives from the operational business.
The members of the Executive Committee are:
- Frédéric Delormel – Executive Vice President and Chief Operating Officer Subsea
- Philippe Barril - Executive Vice President and Chief Operating Officer Onshore/Offshore
- John Harrison – General Counsel
- Thierry Parmentier – Human Resources Director
- Nello Uccelletti - Senior Vice President Onshore
- Julian Waldron – Chief Financial Officer
The Chief Operating Officers (COOs), are responsible for the entire operational organization of their respective division covering the business and all execution resources.
Reporting to the COOs are:
7 Regions that are fully accountable for projects and client relations;
an integrated business unit in charge of Subsea assets and technologies;
9 Product Business Units providing expertise to the Regions
The Group's corporate divisions –Finance and Control, Human Resources, General Counsel and Communications, QHSE, Security, and Risk Management– support the Regions and Business Units and report to the Chairman and CEO.
Financial and stock market information
| Years | 2006 | 2007 | 2008 | 2009 | 2010 |
|---|---|---|---|---|---|
| Revenue | 6,926.5 | 7,886.5 | 7,481.4 | 6,456.0 | 6,081.9 |
| Operating income from recurring activities | 333.2 | 247.0 | 656.9 | 676.7 | 620.3 |
| Net income | 201.9 | 128.0 | 454.3 | 170.4 | 417.6 |
The Technip share is listed on Euronext Paris and on the American over-the-counter market.
- ISIN: FR0000131708
- Nominal value: euro
| Years (at 01/01) | 2006 | 2007 | 2008 | 2009 | 2010 |
|---|---|---|---|---|---|
| Number of shares in issue (in millions) | 106 | 106 | 107 | 109 | 109 |
| Market capitalization (in € millions) | 6,071 | 5,518 | 5,812 | 2,490 | 5,455 |
The Technip share is included in the Dow Jones Sustainability Index
Dow Jones Sustainability Index
Launched in September 1999, the Dow Jones Sustainability Indexes are a family of indexes evaluating the performance of the world’s leaders in sustainability. They are the longest-running global sustainability benchmarks worldwide and have become the key reference point in Sustainability Investing...
and the Low Carbon 100 index and the ASPI Eurozone.
Operations
The Company's clients include oil and gas, chemicals and petrochemicals, commercial and institutional, manufacturingManufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
, power
Electric power
Electric power is the rate at which electric energy is transferred by an electric circuit. The SI unit of power is the watt.-Circuits:Electric power, like mechanical power, is represented by the letter P in electrical equations...
, and infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
.