TechnipFMC Plc scooped up a “substantial” contract on Feb. 22 by Malaysia’s state-owned oil firm Petronas to supply subsea equipment for a deepwater project offshore the Southeast Asian country.

The award follows another recent “substantial” contract win by TechnipFMC for subsea tieback work offshore Egypt. TechnipFMC said the value of a “substantial” contract ranges between $250 million and $500 million.

“[TechnipFMC] FTI continues to show that they’re the 800lbs gorilla in the subsea jewelry space as the team continues to snare market share,” analysts with Tudor, Pickering, Holt & Co. (TPH) wrote in a Feb. 23 research note. “Look it, we fully understand that we’re not likely to see a massive demand ramp for deepwater / offshore projects, but we’ve also seen the competitive landscape in the space erode and we’d argue numerous FTI competitors aren’t attacking the subsea equipment market with the same vigor that they once did, save for maybe [Dril-quip] DRQ.”

In a Feb. 22 company release, TechnipFMC said its subsidiary, FMC Wellhead Equipment Sdn. Bhd., was awarded the substantial contract by a Petronas affiliate for FEED, and integrated engineering, procurement, construction, installation and commissioning of subsea production system, umbilicals, risers and flowlines (iEPCI™) for the Limbayong Deepwater Development Project.

The Petronas contract covers the development of 10 deepwater wells and their tieback to the Limbayong FPSO unit in Malaysia. TechnipFMC will design, manufacture, deliver and install subsea equipment including subsea trees, manifolds, umbilicals, flexible risers, flowlines, jumpers and other associated subsea hardware for the project.

The project will be executed from TechnipFMC’s Kuala Lumpur office and will leverage its local manufacturing plants in Malaysia.

Jonathan Landes, president of subsea at TechnipFMC, commented in the release: “We are delighted and honored to have been selected by Petronas Carigali to develop this deepwater field. We are committed to Petronas Carigali and to the Malaysian oil and gas industry. This iEPCI™ contract combines our integrated subsea solution with our Subsea 2.0™ products, demonstrating the added value of our unique and complete integrated offering.”

TechnipFMC is a fully integrated technology and services provider organized into two business segments—subsea and surface technologies. The company recently completed the spinoff of its Technip Energies segment focused on engineering and technology for the energy transition.

Given TechnipFMC’s focus on the subsea equipment market and the price of Brent currently around $65/bbl, TPH analysts said they expect more projects to FID in the near future with Technip winning “the plurality, if not the majority of them.”

“We continue to believe there’s healthy long-term upside for FTI when comparing the name vs. offshore manufacturing peers NOV and DRQ and many onshore OEMs which’re trading ~16x+ 2021 EBITDA,” the analysts wrote.

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