TechnipFMC revealed that its previously announced transaction to split its business into two separate publicly traded companies is on track to be wrapped up in the second quarter of this year.

In August 2019, the oilfield services provider said that it will spin off its engineering and construction business into a separate company called Technip Energies to capitalise on the global energy transition while boosting value creation.

At that time, TechnipFMC said that the business separation into two diversified pure-play companies is anticipated to enhance their focus on their respective strategies while gaining improved flexibility and growth opportunities.

The completion of the transaction is subject to approval of the European Union (EU) prospectus of Technip Energies by the Dutch Authority for the Financial Markets (AFM). It will also continue to be subject to general market conditions, approvals from regulators, and final approval from TechnipFMC’s board.

The oilfield services provider, in a statement, said: “While awaiting receipt of all final approvals, the Company and its employees will stay focused on delivering operational excellence and world-class service to its clients.”

The company said that the transaction will be structured as a spin-off of its onshore/offshore segment, which will be incorporated in the Netherlands and headquartered in Paris.

TechnipFMC will list Technip Energies on the Euronext Paris exchange

Technip Energies, which will trade on the Euronext Paris exchange, will have nearly 15,000 employees. The new engineering and construction company will include Genesis, a front end engineering and design services provider, and also Loading Systems, and Cybernetix.

According to TechnipFMC, the spin-out company will be well placed to tap into LNG opportunities owing to its disciplined project delivery model, track record, and diversified capabilities.

TechnipFMC stated: “In addition, the new company will benefit from its leadership position, in terms of backlog, in the downstream market, as well as future growth opportunities in biofuels, green chemistry and other energy alternatives.”

The retained business of the oilfield services provider, which will operate under the original name, will be a fully-integrated technology and services provider in the oil and gas industry.

TechnipFMC, which will have nearly 22,000 employees, will continue to be incorporated in the UK with headquarters in Houston, US. The company will be listed on the NYSE and also on the Euronext Paris exchange.