Huge India upside in Technip merger with FMC

Vol 19, PW 20 (16 Jun 16) Exploration & Production
     

Technip is upbeat about the impact in India of its $13bn global merger with Houston-based FMC announced on May 19.

A Technip source tells us the merger will hugely expand the company's product range in India and allow it to bid for more subsea contracts. "Advanced subsea technologies from FMC will be available," he says.

Among these are flowlines, risers, subsea processing, interventions and ROVs [Remotely Operated Vehicles]. Asked if the merger will lead to job cuts in India our source replies: "No, we won't be cutting jobs, at least not in India.

We declared the merger only last month (May) and the deal will close next year (2017)." Technip, he adds, has a workforce of around 2800 people at three centres in Delhi, Mumbai and Chennai. For several years the company has been a familiar name in ONGC bidder lists for EPC contracts.

If anything, the merger will mean more contracts. "All I can say is we are planning big investments in India," he says.

"Our merger with FMC will result in better operational efficiency and allow us to leverage collaboration to deliver the best value proposition." By contrast FMC has a modest presence in India with one office in Hyderabad - the company website talks only of a single project: a Pet Coke Handling system for Bechtel at Reliance's Jamnagar refinery completed in 1998.