Technip SA (TEC), Europe’s second-largest oil-services provider, jumped to a record in Paris after winning its biggest U.K. North Sea contract.
Technip rose as much as 4.6 percent to 88.89 euros, the highest price since starting to trade in 1994, after a BP Plc- led group awarded it a 600 million-euro ($790 million) order for work off the Shetland Islands.
Rising oil prices have spurred exploration for crude and natural gas in harsher environments, increasing demand for the servicing vessels supplied by France’s Technip and its larger European competitor Saipem SpA. The U.K. government also promoted North Sea development last week with the announcement of tax breaks for deep offshore fields in its annual budget.
Technip will develop and install subsea infrastructure for the Quad 204 project at the Schiehallion field west of Shetland, the company said today in a statement. It will provide a floating production, storage and offloading vessel known as an FPSO, as well as pipelines and other equipment.
The shares traded at 88.42 euros as of 12:42 p.m. Paris time, extending their gain this year to 22 percent.
The Schiehallion and Loyal fields, in the Atlantic Ocean north of Scotland, have pumped about 400 million barrels of oil since 1998. Redevelopment will cost about 3 billion pounds ($4.8 billion) under a plan unveiled by BP in July, with the new FPSO able to process and export as much as 130,000 barrels a day.
Technip’s equipment will allow the recovery of as much as 450 million barrels at Schiehallion and extend output to 2035, according to London-based BP, whose partners are Royal Dutch Shell Plc (RDSA), Statoil ASA (STL), Hess Corp. (HES), OMV AG (OMV) and Murphy Oil Corp. (MUR)
Technip had an order backlog of 10.42 billion euros at the end of last year, 3 percent more than at the end of September, it said in February.
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