• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 5 mins Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 4 hours Hong Kong protesters appeal to Trump for support.
  • 14 hours Europe: The Cracks Are Beginning To Show
  • 16 hours Iran Vows Major War Even If US Conducts "Limited Strikes"
  • 1 hour Memorize date 05/15/2018 cause Huawei ban is the most important single event in world history after 9/11/2001.
  • 1 hour Millennials: A boil on the butt of the work ethic
  • 3 hours A little something for all you Offshore swabbies
  • 11 hours Ban Fracking? What in the World Are Democrats Thinking?
  • 16 hours LA Times: Vote Trump out in 2020 to Prevent Climate Apocalypse
  • 13 hours When Trying To Be Objective About Ethanol, Don't Include Big Oil Lies To Balance The Argument
  • 4 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 51 mins Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 1 hour Shale profitability
  • 24 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
  • 11 hours Let's shut down dissent like The Conversation in Australia
Saudi Arabia Pours Cold Water On Oil Rally

Saudi Arabia Pours Cold Water On Oil Rally

After its sudden spike following…

The Biggest Winner In The Saudi Oil Supply Crisis

The Biggest Winner In The Saudi Oil Supply Crisis

The weekend attacks on vital…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

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
Download on the App Store Get it on Google Play