TechnipFMC Signs Framework Agreement with BP for 20K Subsea Production Systems in the U.S. Gulf of Mexico

en.Wedoany.com Reported - On October 20, TechnipFMC announced that it has signed a memorandum of understanding with BP Exploration & Production Inc. for long-term collaboration on 20,000 psi subsea tree systems required for BP's Paleogene projects in the U.S. Gulf of Mexico. The memorandum establishes a framework for subsequent equipment supply and technical collaboration, but does not disclose specific procurement quantities, contract values, or new project awards.

Under the agreement, the two parties will identify potential project opportunities in advance and jointly advance the technical development of subsequent 20K subsea production systems. TechnipFMC plans to continue employing its standardized 20K subsea tree solution to enable reuse of engineering designs and equipment platforms across multiple Paleogene projects. BP is currently advancing two high-pressure oil and gas development projects in the region—Kaskida and Tiber—both of which have subsea system work undertaken by TechnipFMC.

Kaskida is BP's first Paleogene development project to adopt a 20K subsea production system. TechnipFMC was awarded the integrated engineering, procurement, construction, and installation (EPCI) contract for the project in 2024, with a contract value ranging from $250 million to $500 million. The scope of supply includes 20,000 psi standardized subsea trees, subsea manifolds, and the design, fabrication, and installation of umbilicals, risers, and subsea flowlines. BP sanctioned the Kaskida development in July 2024; the project's floating production facility is designed for a crude oil production capacity of 80,000 barrels per day, with first oil planned for 2029.

In January of this year, TechnipFMC was awarded another integrated EPCI contract for the Tiber project, valued at approximately $600 million to $800 million. Tiber directly leverages the engineering design and 20K equipment system being executed for Kaskida, making it BP's second project in the Paleogene region to adopt the same high-pressure subsea production technology. BP previously stated that approximately 85% of Tiber's design will reuse the Kaskida solution.

BP has disclosed that it has discovered approximately 10 billion barrels of oil equivalent in the Paleogene region of the Gulf of Mexico, with Kaskida and Tiber being the two development projects currently prioritized in the area. This memorandum further extends the previously project-by-project 20K subsea system collaboration between TechnipFMC and BP to subsequent Paleogene projects, establishing a unified technical and supply framework for future additional subsea tree system requirements.