• 3 minutes CoV-19: China, WHO, myth vs fact
  • 6 minutes Trump reinvented tariffs and it worked
  • 9 minutes IEA Sees First Global Oil Demand Drop in a Decade on Coronavirus
  • 12 minutes Question: Why are oil futures so low through 2020?
  • 2 days "For the Public's Interest"
  • 36 mins Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 4 hours Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 19 hours Natural Gas from Cow Poop Used to Save the Environment and Help Farmers
  • 1 day Coronovairus, Phase One Agreement, Lower for Longer
  • 3 hours The New Class War Exposes the Oligarchs and Enablers
  • 4 hours Foxconn cancelled the reopening of their mfg plants scheduled for tomorrow. Rescheduled to March 3rd. . . . if they're lucky.
  • 14 hours Has Trump put the USA at the service of Israel?
  • 18 hours Is cheaper plastics feedstock on the horizon?
  • 1 day Weekly U.S. Imports of Crude Oil. No, the U.S. is NOT oil & gas self-sufficient.
  • 2 days Cheap natural gas is making it very hard to go green
  • 12 hours Solar Cells at 25 Cents Apiece (5 cents per watt)
Coronavirus Outbreak Hits Solar Power Development In Asia

Coronavirus Outbreak Hits Solar Power Development In Asia

The coronavirus outbreak is impacting…

Technip-FMC Merger Deal Creates $13B Oil & Gas Services Giant

Tulsa Drilling

Oil and gas services companies French Technip and American FMC Technologies have reached a merger agreement to create a joint company, TechnipFMC, worth $13 billion and expected to generate sales of around $20 billion.

The pending merger will reportedly allow the two to save US$400 million annually beginning in 2019.

The new venture will employ more than 49,000 people in over 45 countries.

Expected to close in early 2017, the deal still requires the approval of both companies’ shareholders and regulators.

Related: Nigerian Oil Output Falls 800,000 Barrels As Militants Step Up Attacks

Both are major players in the oil and gas services sector, with strong portfolios in onshore and offshore drilling, as well as subsea construction.

It’s not their first foray together: Last year, they jointly created Forsys Subsea. The JV is focused on design and construction advancements for subsea oil and gas fields.

For the first quarter of this year, FMC Technologies reported a 67-percent drop in profit, while Technip recorded a 32-percent gain for the same period.

Related: Can EVs Save Electric Utilities?

But the big story here is the competitive behemoth this merger will create. The merger would render TechnipFMC a potential rival to the American giants, Schlumberger, Halliburton and Baker Hughes. They are bullishly joining forces at at cancelled contracts, and the deferment or cancellation of US$270 billion in oil and gas projects since 2014.

On 1 May, Halliburton and Baker Hughes announced the termination of their merger agreement, as the companies were unable to get past federal antitrust regulators. The planned US$35-billion merger faced opposition from regulators on both sides of the Atlantic who argued that the deal would stifle sector competition.

Other top oilfield services provider Schlumberger announced in March that it had obtained approval from the Chinese antitrust authorities for its US$14.8 billion acquisition of Cameron International, a provider of oilfield technology and equipment.

By James Burgess of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage


Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News