Technip Expands Flexible Pipe Manufacturing Footprint in Brazil

Technip announced a new investment project to expand its flexible pipe manufacturing footprint in Brazil adding capacity for additional volume and high-end products.

The very significant development of Brazil's hydrocarbon reserves in recent years has driven huge growth in the demand for flexible pipes for infield flowlines and risers. Currently there are several thousand kilometers of flexible pipes in service in Brazilian oilfields. The pre-salt developments will increase the demand for flexible pipes, both for flowline and riser applications requiring additional capacity and technological capabilities. It is essential that this increasing demand is met locally, to the benefit of the Brazilian economy.

Technip began working with the relevant authorities to obtain approvals to construct a new manufacturing complex at its Angra dos Reis site. This site was acquired by Technip in 2009 and is strategically located in front of the pre-salt basins. It played a critical part in the logistics of the Tupi gas export project successfully executed in 2010. The new manufacturing site will focus on high-end products, such as Integrated Production Bundles (IPBs) which are products unique to Technip. The investment process will start in 2011 with preparing the construction site costing an estimated €30 million. Additional phases will follow upon completion of discussion with clients tailored to their technological needs.

Technip has been in Brazil for 34 years with a major manufacturing and deep water R&D complex at Vitoria, 3 vessels operating locally on charter, a major engineering center in Rio De Janeiro and two logistics bases: Angra dos Reis and Vitoria. Combined, Technip has a workforce in Brazil of 2,800 employees in the Onshore, Offshore and Subsea segments. Technip's ability to supply this growing flexible pipe markets is demonstrated, for example, by two flagship projects won in 2010 - to supply 90 km of risers and flowlines for the challenging Tupi pre-salt pilot field as well as state of the art IPBs for the conventional Papa Terra project. On both projects the risers are equipped with a new and innovative monitoring system.