Sept. 28 (UPI) — French energy services company TechnipFMC said a new contract offshore Brazil takes a relationship with a Norwegian oil company to the global stage.
For undisclosed terms, the company said it would help Norwegian energy company Statoil with new pipeline and production infrastructure at the Peregrino project in the oil-rich Campos Basin off the coast of Brazil.
“This reinforces the long-standing relationship between Statoil and TechnipFMC, which we will continue to strengthen through future Brazilian projects,” Hallvard Hasselknippe, the French company’s president of subsea projects, said in a statement.
The Norwegian energy company claims ownership over the Peregrino field alongside Chinese energy company Sinochem. In 2015, Statoil said it achieved a production milestone in the region by passing the 100 million barrel mark. After spending more than a quarter million dollars to tighten its grip offshore, Statoil said Brazil was “a core area.”
The latest forecast from economists at the Organization of Petroleum Exporting Countries said total production from Latin America should be around 5.3 million barrels per day this year, with most of the growth expected from Brazil with a 260,000 bpd contribution.
Operations at the new offshore campaign in Brazil should begin in the next two years.
TechnipFMC reported an initial first quarter net income attributable to the company was $190.8 million, but later said figures were overstated by about $200 million. The second quarter, however, has been robust so far for energy companies catering to exploration and production.