The company reiterated that the strategic rationale for the separation remains unchanged, and the company is committed to the transaction, and continues its preparations to ensure that the two companies are ready for separation when the markets sufficiently recover. In August 2019, TechnipFMC announced that its board of directors has unanimously approved its plan to separate into two 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 capitalise on the global energy transition.
The separation would enhance both RemainCo’s and SpinCo’s focus on their respective strategies and provide improved flexibility and growth opportunities. The transaction is expected to be structured as a spin-off of TechnipFMC’s onshore/offshore segment to be headquartered in Paris, France. The separation was expected to be completed in the first half of 2020, subject to customary conditions, consultations and regulatory approvals, at which time all outstanding shares of SpinCo will be distributed to existing TechnipFMC shareholders.
The 2017, merger of Technip S.A. and FMC Technologies, Inc. created a new subsea leader and established TechnipFMC as the only fully-integrated subsea provider. TechnipFMC has redefined subsea economics through its integrated model and accelerated technology development and innovation. At the same time, the company’s onshore/offshore business has consistently demonstrated operational excellence, successfully delivered landmark projects, built an unprecedented backlog, and positioned itself to continue capitalising on growing demand for liquefied natural gas (LNG). The exceptional performance of TechnipFMC since the merger has made the proposed spin-off possible and, when completed, will enable the two companies to unlock additional value.
Borouge has awarded TechnipFMC, Maire Tecnimont and WorleyParsons three major contracts in February 2019 for the fourth phase of the Ruwais petrochemicals complex, which will include the world’s largest mixed feed cracker. In a ceremony held in Abu Dhabi, Borouge signed the FEED contract, project management contract and licence contract associated with the mixed feed cracker complex. The contracts were signed by Ahmed Omar Abdulla, CEO, Borouge, Marco Villa, president EMIA, TechnipFMC, and Pierroberto Folgiero, group CEO, Maire Tecnimont, in the presence of Abdulaziz Alhajri, executive director, Downstream Directorate, ADNOC, and Alfred Stern, chief executive, Borealis.
The mixed feed cracker will be the 4th cracker in the Borouge complex and will be the world’s largest with 1.8 million tonnes ethylene output. It will have overall capacity to produce 3.3 million tonnes of olefins and aromatics, using a variety of feedstocks such as ethane, butane and naphtha coming from ADNOC’s refinery and gas processing facilities. One of the tangible benefits of the investment is its contribution to enhancing the In-Country Value proposition. It is expected to generate over $3.5bn local procurement and construction activities during its EPC phase. The project will generate new business and revenue opportunities for local companies in the UAE.
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