Technip S.A.

Type	Société Anonyme
Traded as	Euronext: TEC OTCQX: TKPPY
Industry	Engineering
Founded	1958
Headquarters	Paris, France
Key people	Thierry Pilenko (Chairman and CEO), Julian Waldron (CFO)
Products	Engineering and project management of petroleum industry infrastructure
Revenue	€6.082 billion (2010)[1]
Operating income	€614.7 million (2010)[1]
Profit	€417.6 million (2010)[1]
Total assets	€10.22 billion (end 2010)[1]
Total equity	€3.202 billion (end 2010)[1]
Employees	23,000 (end 2010)[1]
Website	technip.com

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.

History[link]

1958[link]

Technip was established in 1958 by IFP, Institut Français du Pétrole, as Compagnie Française d'Etudes et de Construction Technip.

1960’s[link]

First series of international successes with the completion of projects in Africa and Asia

1970’s[link]

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 (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.

1980’s[link]

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 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.

1990’s[link]

Technip is listed on the Paris Stock Exchange and Coflexip is listed on the New York Stock Exchange. 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.

2000’s[link]

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.

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.

2010's[link]

In September 2011 Technip announced that it would be acquiring Global Industries Ltd., a competitor, in early 2012.^[2]

2011[link]

Technip acquires Global Industries and substantially expands its addressable market in subsea. Global Industries’ capabilities, offshore heavy lift know-how and assets along with Technip’s unique vertically integrated range of products and services enables an offer of substantial value in the execution of complex projects from deep-to-shore.

Organization[link]

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[link]

The Technip share is listed on Euronext Paris and on the American over-the-counter market.

• ISIN: FR0000131708
• Nominal value: euro

The Technip share is included in the Dow Jones Sustainability Index and the Low Carbon 100 index and the ASPI Eurozone.

Offices worldwide[link]

•  France
•  Angola
•  Australia
•  Bahrain
•  Brazil
•  Brunei
•  Belgium
•  Netherlands
•  Canada
•  China
•  Azerbaijan
•  Turkmenistan
•  Colombia
•  Egypt
•  Finland
•  Germany
•  Greece
•  Colombia
•  India
•  Indonesia
•  Italy
•  Malaysia
•  Nigeria
•  Norway
•  New Zealand
•  Portugal
•  Qatar
•  Russia
•  Saudi Arabia
•  Singapore
•  Spain
•  Thailand
•  UAE
•  USA
•  United Kingdom
•  Venezuela
•  Vietnam

FCPA Violations[link]

In June 2010, Technip entered into a settlement with the US Securities and Exchange Commission (SEC) for multiple violations of the Foreign Corrupt Practices Act (FCPA). The SEC alleged that Technip was part of a four-company joint venture named TSKJ that bribed Nigerian government officials between 1994 and 2004 to obtain contracts to build liquefied natural gas (LNG) production facilities worth more than US$6 billion. Technip was also charged with books and records and internal controls violations related to the bribery.^[3]

The administration of former Nigerian President Umaru Musa Yar'Adua had said US$150 million of the bribe money had been traced to an unnamed account in Zurich, Switzerland.^[4] The joint venture operated through three special purpose corporations formed and based in Madeira, Portugal^[5] and paid over US$180 million to two agents to act as conduits for the bribes.^[3]

The other joint venture partners in TSJK were Italian engineering company, Snamprogetti; Kellog Brown & Root (KBR), of the Halliburton group; and Japanese engineering and construction company (JGC).^[4]

Operations[link]

The Company's clients include oil and gas, chemicals and petrochemicals, commercial and institutional, manufacturing, power, and infrastructure.

References[link]

1. ^ ^{a b c d e f} "Annual Results 2010" (PDF). Technip. http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9ODEzODF8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1. Retrieved 27 February 2011. 
2. ^ "Global Industries soars after it agrees to sale". Bloomberg Businessweek (Houston). 12 September 2011. http://www.businessweek.com/ap/financialnews/D9PN2V800.htm. Retrieved 18 February 2012. 
3. ^ ^{a b} US SEC (2010). "SEC Charges Technip with FCPA Violations". US SEC. http://www.sec.gov/news/press/2010/2010-110.htm. 
4. ^ ^{a b} EJIOFOR ALIKE (29 June 2010). "Nigeria: Halliburton - Technip to Pay U.S.$338 Million to Settle Bribery Charges". All Africa. http://allafrica.com/stories/201006290064.html. 
5. ^ FCPA Blog (28 June 2010). "Technip in $338 Million KBR - Related Settlement". FCPA Blog. http://www.fcpablog.com/blog/2010/6/28/technip-in-338-million-kbr-related-settlement.html. 

External links[link]

• Official website

Companies portal

v t e CAC 40 companies of France Accor Air Liquide Alcatel-Lucent Alstom ArcelorMittal AXA BNP Paribas Bouygues Capgemini Carrefour Crédit Agricole EADS EDF Essilor France Télécom GDF Suez Groupe Danone L'Oréal Lafarge Legrand LVMH Michelin Pernod Ricard PSA Peugeot Citroën PPR Publicis Renault Safran Saint-Gobain Sanofi Schneider Electric Société Générale STMicroelectronics Technip Total Unibail-Rodamco Vallourec Veolia Environnement VINCI Vivendi

v t e Petroleum industry Petroleum · Primary energy Benchmarks Argus Sour · Bonny Light · Brent · Dubai · Indonesian · Isthmus-34 Light · Japan Cocktail · OPEC Reference Basket · Tapis · Urals · West Texas Intermediate Companies and organisations Major petroleum companies Supermajors BP · Chevron · ConocoPhillips · ExxonMobil · Royal Dutch Shell · Total National oil companies ADNOC · CNOOC · CNPC · Iraq National Oil Company · Indian Oil Corporation · Kuwait Petroleum Corporation · Nigerian National Petroleum Corporation · NIOC · ONGC · Orlen · PDVSA · Pemex · Pertamina · Petrobras · Petronas · Qatar Petroleum · Rosneft · Saudi Aramco · Sonangol · Sonatrach Other Anadarko · Apache · BG Group · Cenovus Energy · Devon · Eni · Galp Energia · Gazprom · Hess · Husky Energy · Imperial Oil · Lukoil · Marathon Oil · Nippon Oil · Occidental · OMV · PetroChina · Reliance Industries · Repsol YPF · Sinopec · Statoil · Suncor Energy · Surgutneftegas · TNK-BP Major services companies AMEC · Baker Hughes · CGGVeritas · CH2M HILL · China Oilfield Services · Enbridge · Ensco · GE Oil & Gas · Halliburton · National Oilwell Varco · Petrofac · Saipem · Schlumberger · Snam · Technip · TransCanada · Transocean · Weatherford · Wood Group Other International Association of Oil & Gas Producers · International Energy Agency · International Petroleum Exchange · OPEC · Society of Petroleum Engineers · World Petroleum Council Data Natural gas Consumption · Production · Reserves · Imports · Exports · Price Petroleum Consumption · Production · Reserves · Imports · Exports · Price (Price of gasoline and diesel) Exploration and production Exploration Core sampling · Geophysics · Integrated asset modelling · Petroleum engineering (Reservoir simulation · Seismic to simulation) · Petroleum geology · Petrophysics · Reflection seismology (Seismic inversion) · Seismic source Drilling Blowouts · Completion (Squeeze job) · Differential sticking · Directional drilling (Geosteering) · Drilling engineering · Drilling fluid · Drilling fluid invasion · Drill stem test · Lost circulation · Measurement · Tracers · Underbalanced drilling · Well logging Production Agreements (Concessions · Production sharing agreements) · Artificial lift (Pumpjack · Submersible pump (ESP) · Gas lift) · Downstream · Enhanced oil recovery (EOR) (Steam injection · Gas reinjection) · Midstream · Petroleum product · Pipeline transport · Refining · Upstream · Water injection · Well intervention · XT History 1967 Oil Embargo · 1973 oil crisis · 1979 energy crisis · 1980s oil glut · 2000s energy crisis · Founders · History of petroleum · Nationalization · Seven Sisters · Standard Oil · Oil market timelines Provinces and fields List of natural gas fields · List of oil fields · East Texas · Gulf of Mexico · Niger Delta · North Sea · Persian Gulf · Prudhoe Bay Oil Field · Russia · Venezuela · Western Canadian Sedimentary Basin Other Acronymns · Peak oil (Mitigation · Timing) · People · Petrocurrency · Petrodollar · Petroeuro · Shale gas · Swing producer · Unconventional oil (Heavy crude oil · Oil sands · Oil shale) Category ·  Commons