Issue 6 - April 2015

T
TOM O R ROW
A Technip Technology Publication - Issue 6 - April 2015
Manufacturing excellence
at Technip
Inocean and Kanfa,
reinforcing execution capabilities
Strategic alliance with Heerema
Badger, commercializing innovative
technologies
Tomorrow-Technip-April 2015
P.
P.
4-5
Manufacturing
excellence at Technip
P.
P.
8-9
Technip and Heerema
strategic alliance
10-11
Badger licensing
Commercializing innovative
technologies
and KANFA
6-7 Inocean
Reinforcing Technip’s execution
capabilities
Tomorrow Magazine
A Technip
Technology Publication
Issue 6 – April 2015
You can find the previous issues of Tomorrow
at: http://www.technip.com/en/media-center/
tomorrow-magazine
Your comments are always welcome:
publicrelations@technip.com
ISSN 2273-8703
Director of Publication: Christophe Bélorgeot
Chief Editor: Caroline Aurelle
Associate Editors - April 2015 issue:
Thierry Pilenko, Brian A. Roberts, Christian
Nygaard, Cindy Viktorin, Gerald Bouhourd, Hugues
Berton, Jean-François Niel, Jean-Louis Rostaing,
Jean-Philippe Martin, Laurent Decoret, MarieChristine Charrier, Roberta Maciel, Stéphane His.
Photography: Technip image library, Jérome Retru,
BW Offshore
Design and production: Anne-Laure Seguette, Lydia Marchetti
The Group Communications Department would like to thank everyone who
contributed to this issue.
Technip - 89 avenue de la Grande Armée - 75116 Paris - France
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Welcome to the latest issue of Tomorrow, which shines light on
our technology and innovation capabilities through a focus on
strategic alliances and recent acquisitions in both our subsea and
onshore/offshore segments.
Our industry has entered a period
of uncertainties and challenges but
Technip begins 2015 in a strong
position with a long-term
visibility on its activities. In the
coming years we will continue to widen our portfolio of solutions
and reinforce our position in the oil and gas service value chain to
engage early with clients, in order to improve their projects and
offer cost and schedule-driven solutions, investing in skills, people
and technologies. Research and Development (R&D) and
partnerships will play a critical role in this endeavor.
EDITORIAL
Technology and innovation is at the heart of what we do, and key
differentiators we have strived to develop – our net investment
in R&D has more than doubled since 2007 to reach €85 million in
2014. For example in the subsea business, with field developments
becoming increasingly complex, including deepwater operations
with higher pressure and more corrosive fluids, Technip is focused
on technology as an optimization driver for its clients.
Integrating new offers, whether through acquisitions or alliances,
has also enabled us to build our leadership throughout the years.
The acquisition of Stone and Webster Process Technologies in
2012 has strengthened and widened our offering and substantially
enhanced our position as a technology provider to the refining
and petrochemical industry. The acquisition of Zimmer Polymer
Technologies, late 2014, furthers this approach and contributes
to diversifying our onshore activity, adding new revenue streams
based on technology supply.
Our alliance with our partner Heerema – which you can discover
in greater details in this issue – and with whom we have won our
largest subsea contract to date, offers comprehensive subsea
solutions through a unique combination of complementary assets,
technologies and capabilities, and provides the industry with two
strong and experienced contractors to address the ultra-deepwater market.
To face the current changing environment Technip will have to
prove creative in the solutions it offers its clients, providing them
with a proactive response built on solid foundations, to help them
rise to the challenges of the market and reduce the overall costs
of developing oil and gas reserves.
“Technip is focused on
technology as an optimization
driver for its clients.”
I hope you will enjoy reading this new issue of Tomorrow.
Thierry Pilenko
Chairman and CEO
Tomorrow-Technip-April 2015
Technip invested selectively in 2014. Strengthening its key differentiating assets
to deliver its projects timely to clients, became an even more strategic priority for the
Group in the current challenging oil and gas context. Focus on three out of seven plants
which reinforce the Group’s execution capabilities and demonstrate Technip’s true manufacturing excellence.
Manufacturing excellence at Technip
Flexi France: investing in 40 years of expertise
In October 2014, Thierry
Pilenko announced an
investment of €68 million
will be made over four years
to modernize Flexi France,
Technip’s French flexible pipe
manufacturing plant.
Flexi France, in partnership
with IFP (French Petroleum
Institute), conceived in 1971
what is today well-known
technology for offshore
oilfield developments: the
flexible pipe. These hightechnology products manufactured by Flexi France and
designed by PED (Product
Engineering Division), the
in-house R&D center of
excellence for flexible pipe
solutions, are exported all
over the world. "With more
than 40 years of know-how
and technical excellence, they
have attained an international
track record second-to-none
for innovation and reliability",
outlines Hugues Berton,
President at Flexi France.
Flexi France’s modernization
project consists in the installation of new-generation
machines, and the optimization of the site to accommo-
date 12 meter (m) diameter
reels, on which flexible pipes
are spooled. Increasing the
reel capacity, from 9.6 to
12m in diameter, will provide
room for twice as much
flexible pipes on each reel.
Technip’s investment will also
create a new area dedicated
to testing the world’s most
sophisticated flexible pipes.
This investment is part of
Technip’s innovation and differentiation strategy focusing on
technology as an optimization
driver for its clients. Field
developments are becoming
increasingly complex, including deep-water operations
with higher pressure and
temperature levels and more
corrosive fluids. Strengthening
further Technip’s expertise
and industrial capabilities
on the Flexi France site will
reinforce its global leadership
in the production of flexible
pipes, for a cost-effective
development of the ever
more challenging offshore oil
and gas fields.
Extrusion at Flexi France
4-
5
New steel-tube
umbilical manufacturing
facility strengthens
execution capability
Vertical Helix Assembly
Machine at Newcastle
Technip Umbilicals opened
its steel tube umbilical (STU)
manufacturing facility at Newcastle upon Tyne, UK - housed
in one of the tallest singlestorey buildings in Europe at a
height of 58m - in May 2014.
The investment includes the
world’s most capable
Vertical Helix Assembly
Machine (VHAM), a brand new
extrusion line and two large
capacity storage carousels.
"This market leading facility
enables the company to
continue pushing forward
the global subsea oil and gas
market, in terms of safety,
quality and delivery, thus
reinforcing the Group’s
execution capability," explains
Jean-Louis Rostaing, Managing
Director, Technip Umbilicals.
Planning the new factory
involved sharing knowledge
and best practice, with
Technip Umbilicals Inc. in
Houston, USA, who have been
successfully operating a similar
albeit smaller VHAM for
almost 20 years, and extruder
experience with Flexi-France,
in Le Trait, France.
As we explore deeper and
more challenging environments, the STU manufacturing
facility enables the company
to remain at the forefront of
the industry, with the capability to manufacture products
designed to cope with higher
pressures and temperatures,
and the increasing demand for
longer more complex umbilicals. With numerous control
systems, the VHAM ensures
products are manufactured
to the highest level of quality
and safety, in-line with
Technip standards. Complimentary to the existing thermoplastic umbilical capability
of the group, the dedicated
steel tube umbilical assembly
machine creates dynamic
solutions for all areas of the
market. This ensures vertical
integration for all products
and services throughout the
Group and Technip Umbilicals
entities, reinforcing the company’s world leading position
in oil and gas products and
services, and further developing manufacturing excellence.
Flexibrás Açu: the most modern flexible
pipe facility to meet pre-salt challenges
Known in Brazil as a pioneer
in flexible pipe manufacturing
Technip has been investing,
for over 35 years, in R&D,
new technologies and in its
local assets. Striving to be at
the forefront of the energy
industry and the needs of our
clients, the Group launched in
March 2014, Flexibrás Açu, its
second flexible pipe manufacturing facility in Brazil, at
the Açu Port in Rio de Janeiro.
Flexibrás Açu is the most
modern flexible pipe facility,
designed to supply the ultradeepwater pre-salt oil market
demands for pipelines with
bigger diameters and more
resistant materials.
The new plant has the capability to produce flexible pipes
with an internal diameter up
to 22 inches, and can handle
reels up to 500t. In October
of 2014, the first commercial
flexible lines were delivered
for the Sapinhoá Norte field,
the 7th largest producing field
in the country, in the presalt fields of Bacia de Santos. Besides large diameter
pipelines, Flexibrás Açu will
also be able to produce the
Integrated Production Bundle
(IPB), developed and patented
by Technip.
As part of Technip’s commitment to invest in R&D, the
Brazilian Flexible R&D Center
and the Flexibras Technology
Testing Center are focused on
innovating, developing and
qualifying flexible pipe solutions for the pre-salt fields as
well as performing dynamic
and static tests aiming to
simulate real pressure, temperature and loading conditions
the flexibles are subjected to
over the field design life.
“With Flexibrás Açu fully operational,
Technip is able to meet the most
demanding levels of service required by our
clients and the industry as a whole”, Adriano
Novitsky, President of Technip in Brazil.
Tomorrow-Technip-April 2015
In the North Sea, Technip has a strong track record in major project execution, and has recently experienced significant activities within offshore business, primarily engineering, procurement and construction (EPC) execution of various
platform projects including Martin Linge topsides or Aasta Hansteen Spar hull. In addition, Technip has recently completed an engineering and procurement contract for the
Valemon topsides. With the North Sea being an important market for major oil and gas
players, it was essential for Technip to reinforce its knowledge of NORSOK standards.
Inocean and KANFA: reinforcing Technip’s
execution capabilities in Norway
Developing Technip’s local engineering capabilities
and knowledge of NORSOK standards
Building up engineering capabilities at Technip in Norway
enables the Group to perform
front end study work, as well
as FEED studies for North Sea
based clients. Additionaly
all the projects mentioned
above have to comply with
NORSOK standards which are
developed by the Norwegian
petroleum industry to ensure
adequate safety, value adding
and cost effectiveness for
petroleum industry deve-
lopment and operations*.
Having a good understanding
of Norwegian requirements
overall drove Technip’ strategy
to build-up stronger NORSOK
expertise in Norway through a
strengthening of local teams,
and earlier involvement
on projects. Further, when
relevant, NORSOK expertise
will be shared and used by
Technip’s other execution
centers in Paris, Kuala Lumpur
or Houston.
Thus, in 2014, to reinforce its
position as partner of choice
in the North Sea, Technip
acquired a majority stake in
Inocean and a 49% share in
KANFA, two Norway-based
companies. Inocean brings,
on the one hand, regulatory
competence within NORSOK
standards and early-phase
work to provide services to
the oil and gas market, while,
on the other hand, KANFA
brings additional topside and
process competence to
Technip in the region and
reinforces its presence in the
North Sea offshore facility
market.
* Norsok standards, http://bit.
ly/1ABDfAR
From left: Aslak Hjelde; Managing Director, KANFA, Christian Nygaard; Facility
Director, Technip Norge, and Oystein Nilsen, CEO Inocean
KANFA’s main area of
expertise:
Inocean’s main area of
expertise:
Topside/Process
Concept and FEED
Topside process modules/packages, typically
less than 5,000t based on EPC contracts
Process trouble shooting & training
Marine hull & mooring
Design, concept and FEED
Engineering and yard supervision
FPSO Conversion specialist
Life extension studies
FPS, MODU’s (Drilling Rigs), Special Vessels & SURF
Both companies have a long and
successful track record in FPSOs.
Inocean has, for example, performed over 20 FPSO conversions.
Similarly, KANFA has designed
and delivered several topside
process modules/packages for
FPSO’s, working on numerous
projects jointly with Inocean.
6-
7
Strengthening execution capabilities
through synergies
Developing further synergies
between teams has proved
essential and to that effect
a front-end engineering
offshore working group is
set-up for most engineering
projects in Norway, including
employees from Inocean,
KANFA and Genesis, a leading
worldwide front-end engineering consultancy belonging to
Technip. Some 150 Norwaybased employees covering
all disciplines can be part of
this working group, and teams
will be brought together for a
project to work in one office,
under single management
to ensure better execution
and continuity. Both Inocean
and KANFA have a long track
record working jointly together on numerous projects
and will carry on doing so in
the future. For most type of
front-end studies the working group requires few or
no subcontractors to fulfill
typical client requirements.
However, pending on size
and complexity, it can draw
on resources and experiences
from the Technip Group.
Hence clients benefit from
the advantages of working
with a small organization of
experts and can also embark
on larger and more complex
projects with the Group’s
expertise.
Execution models, highlighting
how the project will be
driven, where the engineers
are based, which engineers
and Technip offices will be
executing procurement or
construction responsibilities,
are in place both for North
Sea projects assisted by other
execution centers within
Technip , but also for projects
where the working group is
assisting some of Technip’s
other Regions. Several pro-
jects are already underway
making use of this new
working group to strengthen
execution capabilities.
CLIENT
FEED
Concept
Process EPC &
Trouble Shooting
Floating Production
MODU’s & Special Vessels
Regulatory Compliance; NORSOK etc.
Mutual use of each
Technip
Execution Centers
Paris, Houston, KL
other when required
Worldwide presence - 48 countries
Large ressource base - 38,000 people
First FPSO in gulf of Mexico with disconnectable
turret. Inocean was responsible for basic and
detail engineering of hull and mooring
Courtesy of BW Offshore
Acquiring a majority stake in Inocean and a 49% share in KANFA, have proven successful for all parties. Their capabilities have been a good fit for some
of Technip’s ongoing projects and thus have already contributed to increased
activities. Similarly, through KANFA and Inocean’s track record in servicing the
Lease FPSO owners, has opened up a new area for Technip.
For further information, please contact
Christian Nygaard, Facility Director North Sea Canada cnygaard@technip.com
Tomorrow-Technip-April 2015
Late 2012, Technip and Heerema Marine Contractors (Heerema) announced the signature
of a five-year exclusive and worldwide alliance agreement where both companies will
combine their capabilities to help their clients best attend the fast growing subsea
ultra-deepwater market. Since then, the alliance has won one of the biggest ever subsea
contract, Kaombo, and is aiming to take the partnership further. Overview of the alliance
and its future, with Gérald Bouhourd, Group SVP Business Development & Strategy for
Subsea, who’s also in charge of this Alliance.
Technip and Heerema addressing
the subsea ultra-deepwater market
A strategic alliance leveraging high-end assets
and technologies
Ultra-deepwater developments are some
of the most challenging for clients.
They require extensive project management skills and execution track-record,
technology investment to optimize field
design and provide solutions for high
pressure, and increased pipe tension
installation capability - creating a single
team of industry experts thus became
increasingly relevant.
A common understanding of the subsea market, whereby ultra-deepwater
projects are expected to be the most
dynamic in coming years, drove.
Deep Blue, Technip's leading
deepwater pipelay and subsea
construction vessel
Technip and Heerema to come together
Technip & Heerema share the same total
commitment to safety.
The alliance strategically tackles the need
for:
heavier pipes and subsea equipment
ultra-deepwater
larger developments with contracting
interfaces
increasing QHSE requirements.
Technip’s expertise in engineering, procurement, construction and installation
(EPCI) of large subsea developments is
complementary to Heerema’s know-how
in transport and installation (T&I) via its
high-end assets for top tension pipelay
above 500 tons (t), creating a unique
combination of skills for clients. Partners
leverage their key differentiating assets Deep Blue which is part of Technip’s fleet
and Aegir and Balder which are part of
Heerema’s – their strong presence worldwide, while Technip also leverages its
vertical subsea integration. This provides
the market with a differentiating and
innovative offer.
8-
9
A strong single player
This alliance thus brings new solutions
and possibilities to the market, helping
develop complex fields such as Kaombo,
a major subsea development offshore
Angola, and to date, the biggest ever
subsea contract won by Technip (see box
below). The strongest advantage of this
alliance remains the strengths of combining two leaders working as one and
providing a single offering to customers.
Typically for Kaombo, Technip leverages
its national content working to produce
umbilicals for the project in Angola, while
Heerema draws its high-capacity, top
tension capability with vessel Bolder. In a
context of fierce competition, covering
the entire ultra-deepwater value chain is
a clear strength and driver for success for
this new player. It opens-up a market to
both companies and make the alliance a
better-fit for proposals to develop complex fields, of the like of Kaombo.
The future of the partnership
Initially the alliance was signed for a fiveyear period. This new way of developing
business providing a unique solution to
address client’s needs has proved so far
positive, and has led its management
wanting to develop it further. Early
success with Kaombo, has anchored
the alliance as being both material and
substantial. Technip’s double know-how
in flexible pipes and rigid pipes supplemented by Heerema’s expertise in top
tension could benefit more clients in the
future. The alliance will move forward in
Brazil in the coming months to expand
COMBINATION OF
COMPLEMENTARY SKILLS
FOR KAOMBO
its presence in a more structured way
via a dedicated joint-venture (JV) named
Heerema Technip Brazil, which will be
fully dedicated to deepwater rigid
flowlines and risers solutions.
This shows the alliance’s commitment to
address all rigid developments in Brazil
for National and International Oil
Companies. Technip locally is today
mainly known for its flexible products,
yet through the JV the rigid business
should become more accessible and
bring a new answer to the market.
A long-term strategic alliance
free
free
standing
standing
hybrid
hybrid
riser
riser
system
system
(FSHR)
(FSHR)
Unique complementarity of
capabilities for EPCI projects
in complex environments
Working together enabled Technip and Heerema to widen their subsea
portfolio, and strengthen their positions in the oil and gas service value
chain to attend current and future needs of the world subsea market.
For further information, please contact
gbouhourd@technip.com
Tomorrow-Technip-April 2015
Technip’s acquisition of Stone & Webster process technologies widened
the Group's technology portfolio enabling Technip to position itself early
on projects and offer technological services to its clients. The acquisition
also brought with it 50% interest in Badger Licensing, a joint venture with an
affiliate of ExxonMobil Chemical Company. Badger is principally engaged in developing, marketing and licensing process technologies to the petrochemical industry,
with focus on the phenolics and styrenics sectors, and the refining industry, with
proprietary technology to remove benzene from motor gasoline.
Badger Licensing: commercializing
innovative technologies
A leading provider of proven technologies
Rooted in a rich Boston
history, Badger’s legacy
dates back to 1841,
evolving from what was
once a coppersmithing
firm into a leading
provider of aromatics
alkylation, styrene and
bisphenol A technologies worldwide.
A Snapshot
of Badger’s
Technology
Portfolio*
*indicated by
Badger’s headquarters is
co-located with Technip
Stone & Webster Process
Technology’s office in Boston,
Massachusetts, USA. Badger
leverages Technip’s expertise in this office to execute
the process design packages
associated with its licensed
technologies. Additionally,
just 30 minutes south of
Ethylene
Boston is Technip’s Research
& Development Laboratory
in Weymouth. The lab houses
pilot plants that provide
proof-of-concept for technology developments prior
to commercialization and has
played an instrumental role in
developing Badger’s technologies. In addition, many
of Badger’s technologies are
EB MaxTM
based on zeolite catalysts
developed by ExxonMobil
Chemical Company, which
also has labs that screen new
materials to increase catalyst
activity and selectivity.
Polystyrene
SBR, ABS
Styrene
Phenolic Resins
Benzene
Propylene
Cumene
Phenol
Bisphenol A
Polycarbonate
Epoxy Resins
Olefin
BenzOUTTM
Process
Mogas
Reformate
Ethylbenzene Technology
Badger introduced zeolitecatalyzed ethylbenzene
technology with the startup
of the world’s first such plant
in 1980. In the 1990s Badger
commercialized liquid phase
alkylation and work has
continued with a focus on
developing new solutions
to increase plant reliability
and operability. Badger’s
latest generation technology,
EBMax™ Technology, which
uses ExxonMobil Catalyst
Technologies’ highly selective
proprietary zeolite catalyst,
has been licensed more
than 30 times since 1995 to
produce 45% of the world’s
ethylbenzene capacity.
10-
11
Styrene Technology
As a leader in styrene
tech-nology for more than
50 years, Badger’s name
has become synonymous
with reliability and long
on-stream times. Together
with an operating partner in
Total Petrochemicals, Badger
developed a technology that
uses the lowest steam-to-oil
ratio in the industry.
Combined with patented
Multi-Effect Distillation
(MED), the technology
provides the highest energy
efficiency of any styrene
process offered for license.
Badger’s innovation has
continued beyond that with
the development of Catalyst
Stabilization (CST) and Direct
Heating (DHU) Technologies.
Today the number of plants using
Badger’s styrene technology
represent approximately 40%
of the styrene produced
worldwide via ethybenzene
dehydrogenation.
Cumene Technology
BASF's EB/SM plant in Ludwigshaven, Germany
Bisphenol A Technology
Badger’s BPA technology is
distinguished by its advanced
ion exchange catalyst system
and proprietary two-stage
adduct crystallization, yielding
extremely high BPA product
purity, a requirement for
polycarbonate production.
The technology has been
licensed 12 times and the
With the commercialization
of the world’s first zeolite
catalyzed cumene technology
in 1996, Badger revolutionized
cumene production with
a technology that resulted
in substantial gains in yield,
product purity and reduced
capital investment. The technology uses ExxonMobil Catalyst Technologies’ proprietary
zeolite catalyst, which offers
superior stability, selectivity
and activity at low ratios of
excess benzene, allowing for
the production of high quality
cumene with long, uninterrupted catalyst cycle lengths.
Today, cumene production
worldwide is approximately 16
million MTA, more than half
of which is produced using
Badger’s technology.
BenzOUT™ Technology
resulting plants, totaling over
1.6 million MTA of capacity,
represent nearly 25% of the
total world BPA market and
more than half of the licensed
BPA market. Based on a technology platform developed by
Shell Chemical Company, the
technology was acquired by
Badger in 2004.
In late 2009, Badger and
ExxonMobil Research & Engineering Company partnered
to address the challenge faced
by refiners to meet strict regulations on benzene content
in gasoline. BenzOUT™ enables
refiners to cost-effectively
lower benzene content in
gasoline without utilizing
hydrogen while increasing the
volume and octane value of
the gasoline pool. Since 2010
Badger has licensed the technology three times, with one
unit currently in commercial
operation and another unit
due to start up in 2015.
Pushing the Envelope of Innovation
In October 2015, Badger
will hold its Technology
Conference in Boston. This
event brings together more
than 200 industry experts
from producers and vendors
around the world to learn
about the latest technology
innovations.
Badger’s history of innovation and success in
commercializing new technologies reinforces
its position as a premier technology
provider in the industry.
For more information, visit www.badgerlicensing.com
or contact info@badgerlicensing.com
Tomorrow-Technip-April 2015
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Technip is engaged with its clients to help them
manage their project costs, through its range of
technologies, products and services.
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