The Dirty Dozen #7: Technip Coflexip

Technip Coflexip, one of France’s largest engineering and construction companies, is extensively involved in Iran’s energy sectors.  The company’s projects in the country could total as much as $400 million, and possibly more, depending on the status of contracts and letters of intent negotiated with Iranian companies. 1

Technip’s ties to Iran include multiple contracts for the construction of large petrochemical plants in Iran.  For at least one of these contracts, the company is reported to be providing a variety of equipment and technology.  That project is being built in partnership with Iran’s state-owned National Petrochemical Company.  Technip also owns 20% of the Iranian engineering firm Nagran, which is also involved in Technip’s engineering contracts in Iran. 2

Most significantly, however, Technip’s business ties to Iran have been investigated by the U.S. government due to allegations that specialty pumps provided to Iran by Technip may have contributed to that country’s covert nuclear weapons programs.  According to published reports, the company may have transferred "cryogenic fluid transfer pumps" designed to be "submersible and used to transfer extremely cold fluids" — pumps that may have ended up in the cooling system of one Iran’s nuclear reactors rather than a petrochemical complex. 3

Technip’s activities place it on the "Dirty Dozen" list for the following reasons:

• Advanced Technology: As a leading engineering firm, Technip is undertaking technologically-advanced projects in at least two terrorist-sponsoring states.  As evidenced by an ongoing U.S. government investigation, these types of projects can introduce technology that can have military purposes.  The likelihood that dual-use technology is diverted to nefarious purposes is increased when a company, as is the case with Technip, contracts with state-owned companies. 
• Revenues: Technip is involved in energy projects in terrorist sponsoring states that amount to at least $100 million and possibly $400 million or more, depending on the status of certain contracts.  Not only does this create revenues for the governments involved, but it also serves an engine for broader economic growth.
• Moral and Political Cover :  When leading global companies such as Technip partner with terrorist-sponsoring states, it sends a clear message to these governments: Sponsoring terrorism is not a concern as long as there are corporate profits to be made.  This message undermines U.S. sanctions and international diplomatic efforts.

1. Hydrocarbon Processing, 12/1/02; and WWP-Business Opportunities in Africa & the Middle East, 4/1/02.

2. Oil & Gas Journal, 11/4/02; and Chemical News & Intelligence, 9/18/02.

3. The Washington Times, 9/5/03.