TechnipFMC Secures Subsea Contract for the Hammerhead Project

TechnipFMC plc FTI has landed a substantial subsea contract from ExxonMobil Guyana, an affiliate of Exxon Mobil Corporation XOM, to support the Hammerhead development in Guyana’s Stabroek Block. The contract is considered substantial as it has an estimated value between $250 million and $500 million.

The award of this contract by ExxonMobil Guyana is followed by its recent final investment decision for the Hammerhead project, which aims to boost oil production in the country.

Scope of the Contract

The contract includes management, engineering and manufacturing of subsea production systems with both production and water injection capabilities.The subsea architecture will utilize components from TechnipFMC’s Subsea 2.0 platform, such as subsea trees, manifolds and control systems. This advanced technology has been central to the company’s ability to deliver projects on schedule and boost efficiency in offshore operations.

FTI’s Leveraging Subsea Technology Unit

TechnipFMC’s Subsea unit is engaged in the manufacture and design of products and systems, performs engineering, procurement and project management and provides services to oil and gas companies associated with offshore exploration and production. The company’s Subsea division continues to be its primary growth engine, fueled by a record $2.6 billion in orders during the second quarter of 2025 and is well-positioned to exceed the $10 billion full-year target. The backlog has climbed to $15.8 billion, marking growth in six of the past seven quarters and ensuring strong revenue visibility. Margins also strengthened by 450 basis points to 21.8%, driven by solid execution, a favorable earnings mix, and increased project and services activity. This sustained performance underscores TechnipFMC’s Subsea segment’s resilience, innovation-driven advantage and ability to deliver high-margin growth, reinforcing its role as the cornerstone of the company’s long-term strategy.

A Milestone in Longstanding Collaboration

This agreement marks TechnipFMC’s seventh greenfield engagement with ExxonMobil Guyana since 2017. The project not only expands TechnipFMC’s portfolio but also strengthens its strategic relationship with Exxon, opening doors to future opportunities in Guyana’s booming offshore energy sector in the prolific Stabroek Block.

In April 2024, TechnipFMC, currently carrying a Zacks Rank #3 (Hold), was awarded another substantial contract by Exxon in Guyana’s Stabroek Block. Valued between $500 million and $1 billion, the Whiptail project highlights FTI’s strategic positioning in the region and its expansion through a series of high-value contracts.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Strategic Importance of Stabroek Block

The Stabroek Block, offshore Guyana, is one of the most prolific oil-producing regions in the world. ExxonMobil Guyana is currently the largest stakeholder and also an operator in the Stabroek block, holding a 45% interest. Its partners are Chevron Corporation CVX and CNOOC, holding 30% and 25% interest, respectively. Earlier, Hess Corporation held a 30% stake in the block, which was later acquired by Chevron through a company-wide acquisition deal. The transaction gave Chevron access to the vast reserves of the Starbroek Block, offshore Guyana.

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This article originally published on Zacks Investment Research (zacks.com).

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