France-based Technip will form a jointly-owned company with State Corporation Russian Technologies (Rostec) to provide engineering, design, and turnkey construction for oil refinery, petrochemical and gas chemical production projects in Russia, officials said on Friday.
The joint venture agreement, aimed at improving the construction and renovation of refining and petrochemical units in Russia, was signed with Rostec subsidiary Rustechexport.
"The agreement signed with Rustechexport regarding onshore activities is completely in line with our business strategy of focusing on developing our strengths, notably engineering and project management capabilities as well as project delivery skills," said chief operating officer Philippe Barril.
The deal includes facilities required for offshore oil field operations.
"Cooperation with Rostec offers new business development opportunities for Technip in the Russian oil and gas market," said Technip CEO Thierry Pilenko. "We are delighted to reinforce a long-term industrial footprint in the country."
The two companies are also aiming to establish a joint venture to manufacture flexible pipelines and umbilicals in Russia. These would be used in the Russian Arctic and Black Sea for use in water depths up to 3000 meters.
The agreements were signed during an official meeting between François Hollande, President of the French Republic, and Vladimir Putin, President of the Russian Federation, held Thursday in Moscow, Russia.