TechnipFMC halts split over COVID-19, worsening market conditions

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TechnipFMC reported Sunday that it has put its planned separation into two companies on hold. According to a report from Rigzone, TechnipFMC noted the COVID-19 pandemic, plummeting commodity prices and greater equity market volatility have created market conditions that discourage moving ahead – for now – with its plan to separate into TechnipFMC and Technip Energies.

In August 2019, TechnipFMC said its Board of Directors had unanimously approved its plan to separate into two industry-leading, independent, publicly traded companies: RemainCo, a fully-integrated technology and services provider, continuing to drive energy development; and SpinCo, a leading engineering and construction (E&C) player, poised to capitalize on the global energy transition.

The company had said the separation would enhance both RemainCo’s and SpinCo’s focus on their respective strategies and provide improved flexibility and growth opportunities.

TechnipFMC has been awarded contracts by ExxonMobil affiliate Esso Exploration and Production Guyana Ltd. for the engineering of the subsea systems for the Liza Phase 1 and 2 Development projects in the South American country of Guyana.