##### Table of Contents



As filed with the Securities
and Exchange Commission on June 30, 2005

















|           |  |                                                                                                                                           |  | 
|---------- |  | ----------------------------------------------------------------------------------------------------------------------------------------- |  | 
|(Mark One)
|o          |  | REGISTRATION STATEMENT PURSUANT TO SECTION 12(B) OR
    (G) OF
    THE SECURITIES EXCHANGE ACT OF 1934                                    |  | 
|          
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF
    THE SECURITIES EXCHANGE ACT OF 1934
    For the fiscal year ended: December 31, 2004 |  | 
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)
    OF THE SECURITIES EXCHANGE ACT OF 1934Commission file number 1-15234                |  | 

TECHNIP


(Exact name of Registrant as specified in its charter)


|                             |  |                               
|---------------------------- |  | ------------------------------
|Not applicable               |  | France                        
|(Translation of Registrants |  | (Jurisdiction of incorporation
|name into English)           |  | or organization)              

6-8 allée de lArche, Faubourg de
lArche, Zac Danton


92400 Courbevoie, France


(telephone: +33-1 4778-2121)


(Address of principal executive offices)




|                                                                                             |  |                                           
|-------------------------------------------------------------------------------------------- |  | ------------------------------------------
|Title of each class:                                                                         |  | Name of each exchange on which registered:
|                                                                                             |  |                                           
|American Depositary Shares, each representing
    one-fourth of one Ordinary
    Share(1)(2) |  | New York Stock Exchange                   
|Ordinary
    Shares(1)(2)                                                                    |  | New York Stock Exchange                   






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Listed, not for trading or quotation purposes, but only in
    connection with the registration of the American Depositary
    Shares pursuant to the requirements of the Securities and
    Exchange Commission.                                                                                                                                                                                                              
|   
|   
|(2) | On April 29, 2005, Technips extraordinary meeting
    of shareholders approved a one-for-four share split with the
    corresponding division of the nominal share value, effective
    May 13, 2005. As of May 13, 2005, the number of
    outstanding shares was 96,522,328 with a nominal value of
    0.7625.
    Simultaneously with the share split, our ADS-to-share ratio
    changed from four-to-one to one-to-one.



None




None




Ordinary Shares, nominal value
3.05 per share:
24,110,654(2)




Yes þ o




o Item 18 þ










---










TABLE OF CONTENTS


|          |  |                                                                                  |     |      |     | 
|--------- |  | -------------------------------------------------------------------------------- | --- | ---- | --- | 
|          |  |                                                                                  |     | Page |    
|          |  |                                                                                  |     |      |    
|PART I    |  |                                                                                  | 5   |     
|Item 1.   |  | Identity of Directors, Senior Management
    and Advisers                        |     |      | 5   | 
|Item 2.   |  | Offer Statistics and Expected Timetable                                          |     |      | 5   | 
|Item 3.   |  | Key Information                                                                  |     |      | 5   | 
|Item 4.   |  | Information on Technip                                                           |     |      | 14  | 
|Item 5.   |  | Operating and Financial Review and
    Prospects                                 |     |      | 46  | 
|Item 6.   |  | Directors, Senior Management and
    Employees                                   |     |      | 70  | 
|Item 7.   |  | Major Shareholders and Related Party
    Transactions                            |     |      | 82  | 
|Item 8.   |  | Financial Information                                                            |     |      | 83  | 
|Item 9.   |  | The Offer and Listing                                                            |     |      | 86  | 
|Item 10.  |  | Additional Information                                                           |     |      | 90  | 
|Item 11.  |  | Quantitative and Qualitative Disclosures
    About Market Risk                   |     |      | 120 | 
|Item 12.  |  | Description of Securities to be
    Registered                                   |     |      | 123 | 
|         
|PART II   |  |                                                                                  | 124 |     
|Item 13.  |  | Defaults, Dividend Arrearages and
    Delinquencies                              |     |      | 124 | 
|Item 14.  |  | Material Modifications to the Rights of
    Security Holders and Use of Proceeds |     |      | 124 | 
|Item 15.  |  | Controls and Procedures                                                          |     |      | 124 | 
|Item 16.  |  | [Reserved]                                                                       |     |      | 124 | 
|Item 16A. |  | Audit Committee Financial Expert                                                 |     |      | 124 | 
|Item 16B. |  | Code of Ethics                                                                   |     |      | 124 | 
|Item 16C. |  | Principal Accountant Fees and Services                                           |     |      | 124 | 
|Item 16D. |  | Exemptions from the Listing Standards for
    Audit Committees                   |     |      | 126 | 
|Item 16E. |  | Purchases of Equity Securities by the
    Issuer and Affiliated Purchasers       |     |      | 126 | 
|         
|PART III  |  |                                                                                  | 127 |     
|Item 17.  |  | Financial Statements                                                             |     |      | 127 | 
|Item 18.  |  | Financial Statements                                                             |     |      | 127 | 
|Item 19.  |  | Exhibits                                                                         |     |      | 127 | 
|EX-1.1   
|EX-12.1  
|EX-12.2  
|EX-13.1  
|EX-14.1  



2



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##### Table of Contents



PRESENTATION OF INFORMATION









CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS








| |   |                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our ability to successfully continue to originate and execute
    large integrated services contracts, and construction and
    project risks generally;
|
| |  | the level of production-related capital expenditure in the oil
    and gas industry as well as other industries;                                        
|
| |  | currency fluctuations;                                                                                                                                  
|
| |  | raw material, especially steel price fluctuations;                                                                                                      
|
| |  | the timing of development of energy resources;                                                                                                          
|
| |  | armed conflict or political instability in the Arabic-Persian
    Gulf, Africa or other regions;                                                        
|
| |  | the strength of competition;                                                                                                                            
|
| |  | control of costs and expenses;                                                                                                                          
|
| |  | the reduced availability of government-sponsored export
    financing;                                                                                  
|
| |  | losses in one or more of our large contracts;                                                                                                           
|
| |  | U.S. legislation relating to investments in Iran or elsewhere
    that we seek to do business;                                                          
|
| |  | changes in tax legislation;                                                                                                                             
|
| |  | intensified price pressure by our competitors;                                                                                                          
|
| |  | severe weather conditions;                                                                                                                              
|
| |  | our ability to successfully keep pace with technology changes;                                                                                          

3



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##### Table of Contents





| |   |                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our ability to attract and retain qualified personnel;                                                                                                                                                                       
|
| |  | the evolution, interpretation and uniform application and
    enforcement of International Financing Reporting Standards
    (IFRS), according to which we prepare our financial statements,
    as from January 1, 2005; and
|
| |  | political and social stability in developing countries.                                                                                                                                                                      







4



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##### Table of Contents






PART I





Item 1.     Identity of
Directors, Senior Management and Advisers







Item 2.     Offer Statistics
and Expected Timetable







Item 3.     Key Information


Selected Financial Data


 






|                       |  |                                          |         |  |      |  |         |      |  |  |         |   |  |      |         |   |   |  |         |  |  |  |         | 
|---------------------- |  | ---------------------------------------- | ------- |  | ---- |  | ------- | ---- |  |  | ------- | - |  | ---- | ------- | - | - |  | ------- |  |  |  | ------- | 
|                       |  | Year ended December 31,                  |        
|                       |  |                                          |        
|                       |  | 2004                                     |         |  | 2003 |  |         | 2002 |  |  | 2001    |   |  | 2000 |        
|                       |  |                                          |         |  |      |  |         |      |  |  |         |   |  |      |        
|                       |  | U.S.$(1)                                 |         |  |     |  |         |     |  |  |        |   |  |     |         |   |  | 
|                       |  |                                          |         |  |      |  |         |      |  |  |         |   |  |      |         |   |   | 
|                       |  | (amounts in millions, except share data) |        
|INCOME STATEMENT DATA: |  |                                          |         |  |      |  |         |      |  |  |         |   |  |      |         |   |   |  |         |  |  |  |         | 
|French GAAP            |  |                                          |         |  |      |  |         |      |  |  |         |   |  |      |         |   |   |  |         |  |  |  |         | 
|Net sales              |  |                                          | 6,348.6 |  |      |  | 5,141.0 |      |  |  | 4,711.1 |   |  |      | 4,452.3 |   |   |  | 3,546.0 |  |  |  | 2,972.0 | 
|Operating expenses     |  |                                          | 6,029.4 |  |      |  | 4,882.5 |      |  |  | 4,483.5 |   |  |      | 4,247.7 |   |   |  | 3,311.2 |  |  |  | 2,789.4 | 
|Operating income       |  |                                          | 319.2   |  |      |  | 258.5   |      |  |  | 227.6   |   |  |      | 204.6   |   |   |  | 234.8   |  |  |  | 182.6   | 
|Net income (loss)      |  |                                          | 5.8     |  |      |  | 4.7     |      |  |  | (19.7   | ) |  |      | (29.4   | ) |   |  | 108.1   |  |  |  | 214.2   | 
|U.S. GAAP              |  |                                          |         |  |      |  |         |      |  |  |         |   |  |      |         |   |   |  |         |  |  |  |         | 
|Net sales              |  |                                          | 6,408.4 |  |      |  | 5,189.3 |      |  |  | 4,671.3 |   |  |      | 4,432.0 |   |   |  | 3,547.3 |  |  |  | 2,989.5 | 
|Operating income       |  |                                          | 303.0   |  |      |  | 245.2   |      |  |  | 193.6   |   |  |      | 177.1   |   |   |  | 198.7   |  |  |  | 151.7   | 
|Net income             |  |                                          | 103.0   |  |      |  | 83.3    |      |  |  | 69.6    |   |  |      | 83.3    |   |   |  | 114.8   |  |  |  | 164.9   | 

5



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##### Table of Contents



|                                         |  |                                          |          |   |      |  |          |      |  |  |          |   |  |      |          |   |   |  |          |   |  |  |         |  
|---------------------------------------- |  | ---------------------------------------- | -------- | - | ---- |  | -------- | ---- |  |  | -------- | - |  | ---- | -------- | - | - |  | -------- | - |  |  | ------- | -
|                                         |  | Year ended December 31,                  |         
|                                         |  |                                          |         
|                                         |  | 2004                                     |          |   | 2003 |  |          | 2002 |  |  | 2001     |   |  | 2000 |         
|                                         |  |                                          |          |   |      |  |          |      |  |  |          |   |  |      |         
|                                         |  | U.S.$(1)                                 |          |   |     |  |          |     |  |  |         |   |  |     |          |   |  | 
|                                         |  |                                          |          |   |      |  |          |      |  |  |          |   |  |      |          |   |   | 
|                                         |  | (amounts in millions, except share data) |         
|Per Share Data:                          |  |                                          |          |   |      |  |          |      |  |  |          |   |  |      |          |   |   |  |          |   |  |  |         |  
|French GAAP                              |  |                                          |          |   |      |  |          |      |  |  |          |   |  |      |          |   |   |  |          |   |  |  |         |  
|Non-Diluted earnings (loss) per share    |  |                                          | 0.25     |   |      |  | 0.20     |      |  |  | (0.84    | ) |  |      | (1.1     | ) |   |  | 4.45     |   |  |  | 13.90   |  
|Diluted earnings (loss) per share        |  |                                          | 0.79     |   |      |  | 0.64     |      |  |  |         |   |  |      |         |   |   |  | 4.26     |   |  |  | 12.85   |  
|Non-Diluted number of shares (thousands) |  |                                          | 23,655   |   |      |  | 23,655   |      |  |  | 23,432   |   |  |      | 26,794   |   |   |  | 24,242   |   |  |  | 15,412  |  
|Diluted number of shares (thousands)(2)  |  |                                          | 28,886   |   |      |  | 28,886   |      |  |  | 29,302   |   |  |      | 28,386   |   |   |  | 25,388   |   |  |  | 16,665  |  
|Dividend paid per share                  |  |                                          | 4.08     |   |      |  | 3.30     |      |  |  | 3.30     |   |  |      | 3.30     |   |   |  | 3.30     |   |  |  | 3.30    |  
|U.S. GAAP(3)                             |  |                                          |          |   |      |  |          |      |  |  |          |   |  |      |          |   |   |  |          |   |  |  |         |  
|Basic earnings per share                 |  |                                          | 1.09     |   |      |  | 0.88     |      |  |  | 0.74     |   |  |      | 0.81     |   |   |  | 1.71     |   |  |  | 2.71    |  
|Diluted earnings per share               |  |                                          | 1.07     |   |      |  | 0.87     |      |  |  | 0.74     |   |  |      | 0.80     |   |   |  | 1.69     |   |  |  | 2.68    |  
|Basic number of shares (thousands)       |  |                                          | 94,620   |   |      |  | 94,620   |      |  |  | 93,728   |   |  |      | 103,292  |   |   |  | 67,080   |   |  |  | 60,840  |  
|Diluted number of shares (thousands)(2)  |  |                                          | 95,956   |   |      |  | 95,956   |      |  |  | 93,996   |   |  |      | 103,824  |   |   |  | 67,848   |   |  |  | 61,496  |  
|OTHER FINANCIAL DATA:                    |  |                                          |          |   |      |  |          |      |  |  |          |   |  |      |          |   |   |  |          |   |  |  |         |  
|French GAAP                              |  |                                          |          |   |      |  |          |      |  |  |          |   |  |      |          |   |   |  |          |   |  |  |         |  
|Purchase of fixed assets                 |  |                                          | 152.9    |   |      |  | 123.8    |      |  |  | 126.0    |   |  |      | 126.2    |   |   |  | 2,670.5  |   |  |  | 702.2   |  
|Depreciation and amortization            |  |                                          | 288.4    |   |      |  | 233.5    |      |  |  | 231.6    |   |  |      | 260.8    |   |   |  | 110.9    |   |  |  | 43.0    |  
|BALANCE SHEET DATA:                      |  |                                          |          |   |      |  |          |      |  |  |          |   |  |      |          |   |   |  |          |   |  |  |         |  
|French GAAP                              |  |                                          |          |   |      |  |          |      |  |  |          |   |  |      |          |   |   |  |          |   |  |  |         |  
|Cash and cash equivalents                |  |                                          | 1,770.9  |   |      |  | 1,434.0  |      |  |  | 892.4    |   |  |      | 741.1    |   |   |  | 763.4    |   |  |  | 563.1   |  
|Working capital requirement              |  |                                          | (1,353.3 | ) |      |  | (1,095.9 | )    |  |  | (977.2   | ) |  |      | (879.2   | ) |   |  | (695.7   | ) |  |  | (648.0  | )
|Non-current assets, net                  |  |                                          | 3,825.8  |   |      |  | 3,098.1  |      |  |  | 3,246.0  |   |  |      | 3,518.2  |   |   |  | 3,806.8  |   |  |  | 1,050.7 |  
|Total assets                             |  |                                          | 15,773.6 |   |      |  | 12,773.2 |      |  |  | 12,008.1 |   |  |      | 10,606.0 |   |   |  | 12,117.7 |   |  |  | 6,906.6 |  
|Convertible bonds redemption premium     |  |                                          | 92.2     |   |      |  | 74.7     |      |  |  | 84.5     |   |  |      | 90.4     |   |   |  |         |   |  |  |        |  
|Total short-term debt                    |  |                                          | 240.1    |   |      |  | 194.4    |      |  |  | 226.3    |   |  |      | 297.0    |   |   |  | 456.7    |   |  |  | 191.2   |  
|Total long-term debt                     |  |                                          | 1,689.0  |   |      |  | 1,367.7  |      |  |  | 903.2    |   |  |      | 950.1    |   |   |  | 1,182.2  |   |  |  | 4.8     |  
|Shareholders equity                     |  |                                          | 2,209.2  |   |      |  | 1,789.0  |      |  |  | 1,938.0  |   |  |      | 2,026.3  |   |   |  | 2,214.2  |   |  |  | 766.4   |  
|Minority interests                       |  |                                          | 12.8     |   |      |  | 10.4     |      |  |  | 9.2      |   |  |      | 16.3     |   |   |  | 21.4     |   |  |  | 3.4     |  
|U.S. GAAP                                |  |                                          |          |   |      |  |          |      |  |  |          |   |  |      |          |   |   |  |          |   |  |  |         |  
|Total long-term debt                     |  |                                          | 1,689.0  |   |      |  | 1,367.7  |      |  |  | 903.2    |   |  |      | 950.1    |   |   |  | 1,182.2  |   |  |  | 4.8     |  
|Total assets                             |  |                                          | 8,648.3  |   |      |  | 7,003.2  |      |  |  | 6,045.9  |   |  |      | 5,972.9  |   |   |  | 7,672.4  |   |  |  | 2,451.8 |  
|Shareholders equity                     |  |                                          | 2,534.9  |   |      |  | 2,052.8  |      |  |  | 2,164.3  |   |  |      | 2,108.5  |   |   |  | 2,228.3  |   |  |  | 764.9   |  






|    |                                                                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Translated solely for convenience into dollars at the Noon
    Buying Rate on May 31, 2005 of U.S.$1.2349 per
    1.00 for the
    year ended December 31, 2004.                                                             
|   
|(2) | Diluted number of shares for 2001 excludes 1,847,376 shares held
    by our subsidiary ISIS, which we cancelled subsequent to our
    merger with ISIS in 2002.                                                               
|   
|(3) | On May 13, 2005, the Company effected a one-for-four share
    split. All share and per share data under U.S. GAAP for period
    to and including that date have been retroactively adjusted to
    reflect this share split.

Exchange Rate Information


 Banque de France


6



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##### Table of Contents





|                                  |  |                        |      |  |         |  |      |      |  |  |      |  |  |  |      | 
|--------------------------------- |  | ---------------------- | ---- |  | ------- |  | ---- | ---- |  |  | ---- |  |  |  | ---- | 
|                                  |  | U.S. dollars per 1.00 |     
|                                  |  |                        |     
|                                  |  | Year/period            |      |  | Average |  |      |     
|                                  |  | end rate               |      |  | Rate(1) |  |      | High |  |  | Low  | 
|                                  |  |                        |      |  |         |  |      |      |  |  |      | 
|Yearly amounts                    |  |                        |      |  |         |  |      |      |  |  |      |  |  |  |      | 
|2000                              |  |                        | 0.94 |  |         |  | 0.92 |      |  |  | 1.03 |  |  |  | 0.83 | 
|2001                              |  |                        | 0.89 |  |         |  | 0.89 |      |  |  | 0.95 |  |  |  | 0.84 | 
|2002                              |  |                        | 1.05 |  |         |  | 0.95 |      |  |  | 1.05 |  |  |  | 0.86 | 
|2003                              |  |                        | 1.26 |  |         |  | 1.14 |      |  |  | 1.26 |  |  |  | 1.04 | 
|2004                              |  |                        | 1.35 |  |         |  | 1.25 |      |  |  | 1.36 |  |  |  | 1.18 | 
|Monthly amounts                   |  |                        |      |  |         |  |      |      |  |  |      |  |  |  |      | 
|December 2004                     |  |                        | 1.35 |  |         |  | 1.34 |      |  |  | 1.36 |  |  |  | 1.32 | 
|January 2005                      |  |                        | 1.30 |  |         |  | 1.31 |      |  |  | 1.35 |  |  |  | 1.30 | 
|February 2005                     |  |                        | 1.33 |  |         |  | 1.30 |      |  |  | 1.33 |  |  |  | 1.28 | 
|March 2005                        |  |                        | 1.30 |  |         |  | 1.32 |      |  |  | 1.35 |  |  |  | 1.29 | 
|April 2005                        |  |                        | 1.29 |  |         |  | 1.29 |      |  |  | 1.31 |  |  |  | 1.28 | 
|May 2005                          |  |                        | 1.23 |  |         |  | 1.27 |      |  |  | 1.29 |  |  |  | 1.23 | 
|June 2005 (through June 24, 2005) |  |                        | 1.21 |  |         |  | 1.22 |      |  |  | 1.23 |  |  |  | 1.20 | 






|    |                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------
|(1) | The average of the Noon Buying Rates on the last business day of
    each month during the relevant period.





Dividends




|     |  |                 |      |  |                    |              |            |              |           |             |          |           |  |  |      |  |  |  |      | 
|---- |  | --------------- | ---- |  | ------------------ | ------------ | ---------- | ------------ | --------- | ----------- | -------- | --------- |  |  | ---- |  |  |  | ---- | 
|     |  |                 |      |  |                    |              |            |              |           | Total gross |         
|     |  |                 |      |  |                    |              |            | Avoir Fiscal |           |             | dividend |          
|     |  |                 |      |  |                    | Net dividend |            |              | per share |             |          | per share | 
|     |  |                 |      |  |                    |              |            |              |           |             |          |           | 
|     |  | Distribution    |      |  | Number of shares   |              |            |              |           |            
|Year |  | (in  millions) |      |  | as of December 31, |              |            | (in )       |           |             | (in )   |          
|     |  |                 |      |  |                    |              |            |              |           |             |          |          
|2004 |  |                 | 79.5 |  |                    |              | 24,110,654 |              |           |             | 3.30     |           |  |  | 1.00 |  |  |  | 4.30 | 
|2003 |  |                 | 79.4 |  |                    |              | 23,738,331 |              |           |             | 3.30     |           |  |  | 1.65 |  |  |  | 4.95 | 
|2002 |  |                 | 77.3 |  |                    |              | 23,408,004 |              |           |             | 3.30     |           |  |  | 1.65 |  |  |  | 4.95 | 
|2001 |  |                 | 86.1 |  |                    |              | 26,713,448 |              |           |             | 3.30     |           |  |  | 1.65 |  |  |  | 4.95 | 
|2000 |  |                 | 50.9 |  |                    |              | 16,029,305 |              |           |             | 3.30     |           |  |  | 1.65 |  |  |  | 4.95 | 

7



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##### Table of Contents



Risk Factors


In addition to the other information contained in this annual
report, you should consider carefully the risks described below.
The risks described below are not the only ones we face.
Additional risks not currently known to us, or that we currently
deem immaterial, may also impair our business operations. Our
business, financial condition or results of operations could be
materially adversely affected by any of these risks.


Risks Related to Our Operations


We may fail to successfully execute large integrated
services contracts, which could inhibit our margins.






We are exposed on turnkey contracts to significant
construction risks that could cause us to incur losses.






| |   |                                                                                        
| | - | ---------------------------------------------------------------------------------------
| |  | unanticipated increases in the cost of equipment, materials or
    manpower;           
|
| |  | delays associated with the delivery of equipment and materials
    to the project site;
|
| |  | unforeseen construction conditions creating unanticipated costs;                       
|
| |  | delays caused by local weather conditions; and                                         
|
| |  | suppliers or subcontractors failure to perform.                                      



Losses on one or more large contracts could reduce our net
income or cause us to incur a loss.




8



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##### Table of Contents



Because most of our sales are to companies in the
hydrocarbon/petrochemical industry, a reduction in
production-related capital spending in that industry could cause
our projects to be postponed or cancelled and constrain our
ability to grow or maintain profits.








| |   |                                                                       
| | - | ----------------------------------------------------------------------
| |  | the rate of discovery and development of new oil and gas
    reserves;
|
| |  | global demand for energy;                                             
|
| |  | global demand for petrochemicals and fertilizers;                     
|
| |  | local and international political and economic conditions; and        
|
| |  | trends in environmental legislation.                                  



Because we make sales and incur expenses in multiple
currencies, exchange rate movements may cause us to incur losses
when hedging on our exchange rate exposure is not
sufficient.




One or more of our contracts for projects in Iran may be
subject to U.S. sanctions, which could limit our ability to
obtain credit from U.S. financial institutions and restrict our
ability to make sales in the United States, potentially
increasing our cost of borrowing and reducing our business
opportunities.




9



---



##### Table of Contents





 


Our revenues are subject to a significant number of tax
regimes and changes in the legislation governing the rules
implementing them or the regulator enforcing them in any one of
these countries could negatively and adversely affect our
results of operations.




Risks Related to the Engineering and Construction Industry


Because a large number of oil and gas projects are found
in developing countries, political, economic and social
instability in these countries could cause projects to be
cancelled, postponed or subject to delays, which could increase
our costs and reduce our future growth opportunities.




10



---



##### Table of Contents





Reduced availability of government-sponsored export
financing could increase project costs to our clients and lead
to fewer new projects and reduce our growth
opportunities.




Sustained high raw materials and maritime freight prices
increase our production costs and cost of goods sold, and we may
not be able to pass the increased costs to customers.




An adverse pricing environment, including renewed price
pressure by our competitors could reduce the volume of contracts
meeting our potential margin criteria and negatively affect our
net income.




Our operations may cause substantial harm to persons,
property and the environment, which could hurt our reputation
and, to the extent they are not covered contractually or by
insurance, could cause us to incur substantial costs.




11



---



##### Table of Contents





Operations in facilities we have constructed or are
constructing may cause the discharge of hazardous substances,
which could result in significant environmental remediation
costs and cause us to incur a substantial loss.






Our operations are sensitive to severe weather
conditions.




We could be adversely affected if we fail to keep pace
with technological changes, and changes in technology could
result in write downs of our assets.




Our success depends on attracting and retaining qualified
personnel in a competitive environment.




Risks Related to Our Shares and American Depositary Shares
(ADSs)


Fluctuations in the exchange rate between the U.S. dollar
and the euro may reduce the U.S. dollar market value of our
American depositary shares as well as the U.S. dollar value of
any dividends we pay.




12



---



##### Table of Contents



Double voting rights of our shares and change of control
provisions in our agreements may limit our shareholders
opportunities to be offered a premium price for our shares by a
potential acquirer.


statuts


If you hold our ADSs rather than our shares, you will not
be able to exercise all the rights our articles of association
(statuts) provide to holders of our shares.




13



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##### Table of Contents






Item 4.     Information on
Technip


Overview of Our Business



















tm


14



---



##### Table of Contents



The Industry in Which We Operate












|                       |  |                         
|---------------------- |  | ------------------------
|(SALES 2004 PIE CHART) |  | (BACKLOG 2004 PIE CHART)



| |                                                        
| | -------------------------------------------------------
| | Offshore: Net Sales of
    2,487.2 million
    in 2004



15



---



##### Table of Contents





| |                                                                   
| | ------------------------------------------------------------------
| | Onshore/ Downstream: Net Sales of
    2,385.1 million
    in 2004





| |                                                        
| | -------------------------------------------------------
| | Industries: Net Sales of
    268.7 million
    in 2004





| |         
| | --------
| | Strategy





| |   |                                                                                                                                                                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | in a stable market experiencing historically high activity
    levels, to make 2005 a year during which we maintain our
    Offshore sectors market position, consolidate our presence
    in western Africa and reinforce our business in the Brazilian
    market, which is experiencing renewed activity;
|
| |  | to actively participate in natural gas markets, which are
    experiencing strong growth, particularly in the Middle East,
    with respect to gas treatment and separation, liquefied natural
    gas (LNG) and gas-to-liquids
    (GTL) projects;                                                      
|
| |  | to continue environmental upgrades of refineries, especially in
    Europe, and to execute new refinery construction projects in
    Asia and the Middle East;                                                                                                                                               
|
| |  | to follow the evolution of the petrochemical cycle, which should
    see a recovery in investments in 2005; and                                                                                                                                                                                              
|
| |  | to maintain an equilibrium in terms of revenues between our
    Offshore and Onshore/ Downstream Activities (the latter
    including Industries Activities).                                                                                                                                                

Recent Major Acquisitions and Disposals




Acquisition of the Deepwater Division of Aker Maritime.


Acquisition of Coflexip.


Nargan.


16



---



##### Table of Contents



Angoflex.


Merger with ISIS.


Disposal.


Merger with Coflexip.


Agreement with Capiton AG.


Oceanide Acquisition.


Dirpar.


Non-strategic assets.


KTI S.p.A.


CSO Deep Pioneer. CSO Deep Pioneer


EHR and IG S.p.A.


Sectors of Activity






17



---



##### Table of Contents



Offshore Activities


  












| |                          
| | -------------------------
| | Subsea Oil Field Services



CSO
Deep Blue




18



---



##### Table of Contents





| |                   
| | ------------------
| | Surface Facilities



Fixed Platforms.


Floating and Semi-submersible Platforms.






| |                        
| | -----------------------
| | Industry Considerations





| |                  
| | -----------------
| | Offshore Strategy





| |   |                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | defend our leadership position in the SURF sector;                                                                                                                                                                                
|
| |  | benefit from the anticipated upswing in Brazil, especially
    in flexible pipe deliveries; and                                                                                                                                   
|
| |  | enhance our position in the area of floating platforms,
    following the major successes in 2003 of Dalia FPSO
    (Angola) and P52 (Brazil) followed in 2004 by
    P51 (Brazil) and the Spar Constitution (Gulf of
    Mexico).

Onshore/ Downstream Activities


  


19



---



##### Table of Contents







Onshore Field Development.


Pipelines.


Natural Gas Treatment and Liquefaction.




Refineries.




| |   |                                                                                           
| | - | ------------------------------------------------------------------------------------------
| |  | reduced energy consumption, in part through reliance on steam
    by-products of refining;
|
| |  | improved separation of the hydrocarbon components of crude oil;                           
|
| |  | flexibility to produce new gasoline formulations; and                                     
|
| |  | low pollution.                                                                            

20



---



##### Table of Contents





Petrochemicals.


Ethylene.


Polyethylene/ Polypropylene.




| |                        
| | -----------------------
| | Industry Considerations









21



---



##### Table of Contents





| |                            
| | ---------------------------
| | Onshore/Downstream Strategy





| |   |                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | capture expected growth in demand for gas projects to enhance
    our current leadership in the treatment, separation and
    liquefaction of gas, and to develop our position in
    GTL projects, for example, the expansion of the project we
    are currently developing in Qatar; and
|
| |  | emphasize refining and petrochemical projects with a high
    value-added component tied to their technological content as
    well as their status as large turnkey contracts.                                                                                                            

Industries Activities




  


Life Sciences.


Chemicals.


Power Generation.


Metals.


Aeronautic and Space Industries.


Cement.


22



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##### Table of Contents



Industrial Buildings and Infrastructures.


Industry
Considerations




Industries Strategy




Segment and Geographical Breakdown of Net Sales and
Backlog


Net Sales by Activity




|                               |  |                         |         |  |      |  |         |      |  |  |         | 
|------------------------------ |  | ----------------------- | ------- |  | ---- |  | ------- | ---- |  |  | ------- | 
|                               |  | Year ended December 31, |        
|                               |  |                         |        
|                               |  | 2004                    |         |  | 2003 |  |         | 2002 | 
|                               |  |                         |         |  |      |  |         |      | 
|                               |  | (in  millions)         |        
|Offshore Activities            |  |                         | 2,487.2 |  |      |  | 2,209.7 |      |  |  | 2,125.0 | 
|Onshore/ Downstream Activities |  |                         | 2,385.1 |  |      |  | 2,119.0 |      |  |  | 1,938.6 | 
|Industries Activities          |  |                         | 268.7   |  |      |  | 382.4   |      |  |  | 388.7   | 
|                               |  |                         |         |  |      |  |         |      | 
|Total                          |  |                         | 5,141.0 |  |      |  | 4,711.1 |      |  |  | 4,452.3 | 
|                               |  |                         |         |  |      |  |         |      | 

Net Sales by Geographic
Zone




|                             |  |                         |         |  |      |  |         |      |  |  |         | 
|---------------------------- |  | ----------------------- | ------- |  | ---- |  | ------- | ---- |  |  | ------- | 
|                             |  | Year ended December 31, |        
|                             |  |                         |        
|                             |  | 2004                    |         |  | 2003 |  |         | 2002 | 
|                             |  |                         |         |  |      |  |         |      | 
|                             |  | (in  millions)         |        
|Europe/ Russia/ Central Asia |  |                         | 1,278.9 |  |      |  | 1,138.2 |      |  |  | 1,196.6 | 
|Africa/ Middle East          |  |                         | 2,553.8 |  |      |  | 2,150.3 |      |  |  | 1,482.0 | 
|Americas                     |  |                         | 929.4   |  |      |  | 1,078.1 |      |  |  | 1,328.5 | 
|Asia Pacific                 |  |                         | 378.9   |  |      |  | 344.5   |      |  |  | 445.2   | 
|                             |  |                         |         |  |      |  |         |      | 
|Total                        |  |                         | 5,141.0 |  |      |  | 4,711.1 |      |  |  | 4,452.3 | 
|                             |  |                         |         |  |      |  |         |      | 



| |                                  
| | ---------------------------------
| | Special Geographic Considerations



23



---



##### Table of Contents



















| |                               
| | ------------------------------
| | Backlog by Segment of Activity



|                               |  |                            |      |  |      |  |      |      |  |  |      | 
|------------------------------ |  | -------------------------- | ---- |  | ---- |  | ---- | ---- |  |  | ---- | 
|                               |  | As of December 31,         |     
|                               |  |                            |     
|                               |  | 2004                       |      |  | 2003 |  |      | 2002 | 
|                               |  |                            |      |  |      |  |      |      | 
|                               |  | (unaudited, in  billions) |     
|Offshore Activities            |  |                            | 2.80 |  |      |  | 2.89 |      |  |  | 1.76 | 
|Onshore/ Downstream Activities |  |                            | 3.76 |  |      |  | 3.91 |      |  |  | 3.63 | 
|Industries Activities          |  |                            | 0.22 |  |      |  | 0.38 |      |  |  | 0.39 | 
|                               |  |                            |      |  |      |  |      |      | 
|Total                          |  |                            | 6.78 |  |      |  | 7.18 |      |  |  | 5.78 | 
|                               |  |                            |      |  |      |  |      |      | 

24



---



##### Table of Contents



Backlog by Geographical
Zone







Description of Our Operations


Contract Project
Management






| |                 
| | ----------------
| | Turnkey Projects









| |                            
| | ---------------------------
| | Cost Plus Fee Contracting



25



---



##### Table of Contents







| |                              
| | -----------------------------
| | Single Project Joint Ventures







| |          
| | ---------
| | Alliances





| |                               
| | ------------------------------
| | Execution of a Turnkey Project





|                                              |  |                                                                                                                                                                                                              
|--------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Financial Engineering                         |  | Our teams assist clients in obtaining external project finance
    before work commences.                                                                                                                    
|                                             
|Engineering Design                            |  | Our engineering services draw on our internal engineering staff
    and our selected technologies to design the facility.                                                                                    
|                                             
|Procurement                                   |  | Our project teams source equipment from outside manufacturers
    through competitive bidding.                                                                                                               
|                                             
|Construction                                  |  | Our project teams select and oversee outside construction
    companies.                                                                                                                                     
|                                             
|Commissioning, Start-up and Performance Tests |  | Our commissioning/start-up service verifies the readiness of the
    facility and starts operations. Once start-up and performance
    tests are successfully completed, our role in the project is
    over.



26



---



##### Table of Contents







| |                      
| | ---------------------
| | Financial Engineering





| |   |                                                                 
| | - | ----------------------------------------------------------------
| |  | export credits from multiple national export-import authorities;
|
| |  | co-financing with multinational financing institutions;         
|
| |  | structured trade finance;                                       
|
| |  | international commercial credit;                                
|
| |  | local funding; and                                              
|
| |  | letters of credit.                                              





Chile:


Oman:


Brazil: 


Turkmenistan: 


Uzbekistan:


Egypt:


Malaysia:






| |                   
| | ------------------
| | Engineering Design



27



---



##### Table of Contents







Basic engineering design.


Front-end engineering design.


Detailed engineering.




| |            
| | -----------
| | Procurement







28



---



##### Table of Contents




















29



---



##### Table of Contents





| |             
| | ------------
| | Construction









| |   |                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | systematic recourse to competitive bidding contributes to cost
    containment, allowing us to submit competitive project bids with
    acceptable opportunities for achieving high operating margins;
|
| |  | our freedom to subcontract to a large pool of construction
    companies allows us to select the firms with the most relevant
    technical expertise for a given project;                            
|
| |  | in periods in which we require fewer construction services, we
    do not carry the related overhead and payroll costs of an
    internal unit; and                                                   
|
| |  | we believe that we are on average able to produce higher
    operating margins from management of construction than from the
    construction work we subcontract to others.                          



| |                         
| | ------------------------
| | Commissioning & Start-Up





| |                                                 
| | ------------------------------------------------
| | Special Challenges of Turnkey Project Management



| |                
| | ---------------
| | Risk Management







| |   |                                                                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | selecting projects carefully; this generally entails rejecting
    an opportunity to bid on a project which we do not believe will
    offer us profit opportunities adequate to cover risks;

30



---



##### Table of Contents





| |   |                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | ensuring adequate technical capacity to meet contract
    obligations; this includes rejecting opportunities to bid on
    projects outside our core competencies;                            
|
| |  | using our global scale to diversify counterparty, country and
    industry risks;                                                                                                             
|
| |  | participating in joint ventures to spread risk over more
    partners and more projects;                                                                                                      
|
| |  | estimating and controlling costs in reliance on our extensive
    experience in procuring equipment, materials and services,
    particularly for turnkey projects, and analyzing cost trends;
|
| |  | commencing activities only after a projects financing and
    government authorizations have been secured;                                                                                   
|
| |  | ordering equipment rapidly and in the currency of our project
    receivables; this limits price-level and exchange rate risk;                                                                
|
| |  | selecting appropriate subcontractors based on technical
    abilities and financial strength;                                                                                                 
|
| |  | effective negotiation of contract terms and conditions including
    payment, change in laws, change orders, force majeure,
    etc., to minimize contract and financial risks;               
|
| |  | using experienced project managers;                                                                                                                                                           
|
| |  | conducting regular project reviews by senior management together
    with project management; and                                                                                             
|
| |  | obtaining appropriate insurance.                                                                                                                                                              





| |               
| | --------------
| | Business Risks





force majeure,


31



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##### Table of Contents











| |                
| | ---------------
| | Cash Flow Risks









| |                       
| | ----------------------
| | Foreign Exchange Risks





| |                              
| | -----------------------------
| | Engineering Service Contracts



32



---



##### Table of Contents







| |                                       
| | --------------------------------------
| | Installation and Other Subsea Services



Rigid Pipelay. CSO Apache CSO Deep Blue




CSO Deep Blue CSO Apache


Flexible Pipelay and Umbilicals. CSO Deep
Blue, CSO Constructor CSO Deep Pioneer


Trenching Services.


Other Installation Services.


Inspection, Repair and Maintenance.


33



---



##### Table of Contents











| |                         
| | ------------------------
| | Manufacturing and Supply



Flexible Pipe.


Drilling and Refining Applications Pipes.


Umbilicals.


Robotics.


34



---



##### Table of Contents





Spar Manufacture.




Project Tenders and Competition












35



---



##### Table of Contents







| |         
| | --------
| | Offshore

Surface Facilities.


Subsea Services.


Design and Manufacturing of Flexible Pipe.


Umbilicals.


Robotics.




| |                    
| | -------------------
| | Onshore/ Downstream



Technology




Research and Development


CSO Deep Blue


36



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##### Table of Contents





  






| |                     
| | --------------------
| | Technology Alliances





| |             
| | ------------
| | Acquisitions



Human Resources






| |                                      
| | -------------------------------------
| | Motivation Through Employee Ownership





| |                                                    
| | ---------------------------------------------------
| | Expansion and Internationalization of Our Workforce



37



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##### Table of Contents









|               |  |                         |        |  |      |  |        |      |  |  |        | 
|-------------- |  | ----------------------- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
|               |  | Year ended December 31, |       
|               |  |                         |       
|               |  | 2004                    |        |  | 2003 |  |        | 2002 | 
|               |  |                         |        |  |      |  |        |      | 
|Employees      |  |                         | 15,300 |  |      |  | 15,400 |      |  |  | 15,000 | 
|External staff |  |                         | 3,700  |  |      |  | 3,600  |      |  |  | 4,000  | 
|               |  |                         |        |  |      |  |        |      | 
|Total          |  |                         | 19,000 |  |      |  | 19,000 |      |  |  | 19,000 | 
|               |  |                         |        |  |      |  |        |      | 

|                         |  |                         |        |  |      |  |        |      |  |  |        | 
|------------------------ |  | ----------------------- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
|                         |  | Year ended December 31, |       
|                         |  |                         |       
|                         |  | 2004                    |        |  | 2003 |  |        | 2002 | 
|                         |  |                         |        |  |      |  |        |      | 
|Europe and rest of world |  |                         | 10,500 |  |      |  | 10,450 |      |  |  | 11,134 | 
|Middle East/ Africa      |  |                         | 1,100  |  |      |  | 850    |      |  |  | 855    | 
|Asia/ Pacific            |  |                         | 2,850  |  |      |  | 2,280  |      |  |  | 1,995  | 
|Americas                 |  |                         | 4,550  |  |      |  | 5,420  |      |  |  | 5,016  | 
|                         |  |                         |        |  |      |  |        |      | 
|Total                    |  |                         | 19,000 |  |      |  | 19,000 |      |  |  | 19,000 | 
|                         |  |                         |        |  |      |  |        |      | 



| |                   
| | ------------------
| | Employee Relations









Property, Plant and Equipment




38



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##### Table of Contents



  




| |                     
| | --------------------
| | Principal Properties



|                           |  |                           |  |             
|-------------------------- |  | ------------------------- |  | ------------
|Location                   |  | Function                  |  | Status      
|                           |  |                           |  |             
|Paris-La Défense, France   |  | Group HQ and Offices      |  | Leased      
|Le Trait, France           |  | Plant and Offices         |  | Owned       
|Lyon, France               |  | Offices                   |  | Owned       
|Aix-en-Provence, France    |  | Offices                   |  | Co-owned    
|Rome, Italy                |  | Offices                   |  | Owned       
|The Hague, The Netherlands |  | Offices                   |  | Leased      
|Düsseldorf, Germany        |  | Offices                   |  | Leased      
|Kuala Lumpur, Malaysia     |  | Offices                   |  | Leased      
|Abu Dhabi, U.A.E           |  | Offices                   |  | Leased      
|Vitoria, Brazil            |  | Plant and Offices         |  | Leased/Owned
|Rio de Janeiro, Brazil     |  | Offices                   |  | Owned       
|Caracas, Venezuela         |  | Offices                   |  | Co-owned    
|Saint Petersburg, Russia   |  | Offices                   |  | Leased      
|New Delhi, India           |  | Offices                   |  | Leased      
|Fremantle, Australia       |  | Plant and Offices         |  | Leased/Owned
|Perth, Australia           |  | Offices                   |  | Leased      
|Newcastle, UK              |  | Plant and Offices         |  | Leased/Owned
|Aberdeen, UK               |  | Plant and Offices         |  | Leased      
|Westhill, UK               |  | Offices                   |  | Leased/Owned
|Tyne & Wear, UK            |  | Plant and Offices         |  | Owned       
|Pori, Finland              |  | Land, Plant and Offices   |  | Owned       
|Channelview, Texas(1)      |  | Land and Plant            |  | Owned       
|San Dimas, California      |  | Offices                   |  | Leased      
|Mobile, Alabama            |  | Land                      |  | Leased      
|Houston, Texas             |  | Offices                   |  | Leased      
|Jupiter, Florida           |  | Land, Plant and Offices   |  | Leased/Owned
|Amelia, Louisiana          |  | Assembly Yard and Offices |  | Leased      
|Lobito, Angola             |  | Plant                     |  | Leased      
|York (Kirkbymoorside), UK  |  | Plant and Offices         |  | Leased      






|    |                                                                     
|--- | --------------------------------------------------------------------
|(1) | Owned subject to an encumbrance (i.e., lien on tangible
    assets).







39



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##### Table of Contents





| |                       
| | ----------------------
| | Marine Service Vessels



|                    |  |          |     |  |                          |                                            |        |  |     | 
|------------------- |  | -------- | --- |  | ------------------------ | ------------------------------------------ | ------ |  | --- | 
|                    |  | Overall  |     |  |                          |                                            |       
|                    |  | Length   |     |  | Maximum Lifting Capacity |                                            | Diving | 
|Name                |  | (meters) |     |  | (metric tons)            |                                            | System | 
|                    |  |          |     |  |                          |                                            |        | 
|Sunrise 2000        |  |          | 132 |  |                          | 120 (3 cranes)                             |        |  | No  | 
|CSO Deep Blue       |  |          | 192 |  |                          | 400 (3 cranes)                             |        |  | No  | 
|CSO Apache          |  |          | 123 |  |                          | 85 (3 cranes)                              |        |  | No  | 
|CSO Wellservicer(1) |  |          | 111 |  |                          | 130 (2 cranes)                             |        |  | Yes | 
|CSO Constructor     |  |          | 127 |  |                          | 115 (3 cranes)                             |        |  | No  | 
|CSO Orelia          |  |          | 119 |  |                          | 200 (2 cranes)                             |        |  | Yes | 
|CSO Alliance        |  |          | 78  |  |                          | 140 (3 cranes)                             |        |  | Yes | 
|CSO Venturer        |  |          | 129 |  |                          | 225 (2 cranes)                             |        |  | Yes | 
|CSO Marianos        |  |          | 90  |  |                          | 65 (2 cranes)                              |        |  | Yes | 
|CSO Deep Pioneer    |  |          | 156 |  |                          | 150 (2 cranes)                             |        |  | No  | 
|Normand Pioneer(1)  |  |          | 95  |  |                          | 150 (A-Frame)                              |        |  | No  | 
|PS1                 |  |          | 76  |  |                          | 30 (1 crane) + 15 (1 crane)                |        |  | Yes | 
|PS2                 |  |          | 93  |  |                          | 50 (1 crane) + 30 (1 crane) + 15 (1 crane) |        |  | Yes | 
|PS3                 |  |          | 93  |  |                          | 50 (1 crane) + 5 (1 crane)                 |        |  | Yes | 






|    |                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------
|(1) | These vessels are under long-term leases. The other vessels are
    owned by the companies of the Group.

CSO Deep
Pioneer CSO Deep Blue CSO Deep Blue CSO
Venturer


Dependence








40



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##### Table of Contents





|                                                                     |  |                         |         |   |      |  |         |      |  |  |         |  
|-------------------------------------------------------------------- |  | ----------------------- | ------- | - | ---- |  | ------- | ---- |  |  | ------- | -
|                                                                     |  | Year ended December 31, |        
|                                                                     |  |                         |        
|                                                                     |  | 2004                    |         |   | 2003 |  |         | 2002 | 
|                                                                     |  |                         |         |   |      |  |         |      | 
|Total net sales                                                      |  |                         | 5,141.0 |   |      |  | 4,711.1 |      |  |  | 4,452.3 |  
|Principal customers with the following percentages of net
    sales: |  |                         |         |   |      |  |         |      |  |  |         |  
|Customer A                                                           |  |                         |        |   |      |  | 7.2     | %    |  |  | 8.3     | %
|Customer B                                                           |  |                         |        |   |      |  |        |      |  |  | 5.6     | %
|Customer C                                                           |  |                         | 8.3     | % |      |  | 9.1     | %    |  |  | 5.0     | %
|Customer D                                                           |  |                         | 7.4     | % |      |  |        |      |  |  |        |  
|Customer E                                                           |  |                         | 7.2     | % |      |  |        |      |  |  |        |  
|Customer F                                                           |  |                         |        |   |      |  |        |      |  |  |        |  
|Customer G                                                           |  |                         | 7.7     | % |      |  | 7.9     | %    |  |  |        |  

Pledged Assets




Insurance Coverage






Environmental Matters and Other Governmental Regulations




| |                                                                            
| | ---------------------------------------------------------------------------
| | Industrial Risks Related to Environmental and Health and
    Safety Matters





41



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| |                                         
| | ----------------------------------------
| | Fabrications Units & Engineering Centers







| |   |                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The future Regulation concerning the Registration, Evaluation,
    Authorization and Registration of Chemicals (REACH) which
    could be implemented in 2006;
|
| |  | Directive 2003/87/ EC, establishing a scheme for greenhouse gas
    emission allowance trading within the Community; and                                      
|
| |  | Directive 2004/35/ EC, establishing environmental liability with
    regard to the prevention and remedying of environmental damage.                          



| |      
| | -----
| | Fleet











42



---



##### Table of Contents





| |                                                                      
| | ---------------------------------------------------------------------
| | Engineering, Procurement, Construction, Management (EPCM)
    Project











| |                                             
| | --------------------------------------------
| | Legal Risks Related to Environmental Matters





43



---



##### Table of Contents









Corporate History






société anonyme statuts


44



---



##### Table of Contents





Organizational Chart





45



---



##### Table of Contents






Item 5.     Operating and
Financial Review and Prospects


Overview


The following discussion is based on information derived from
our Consolidated Financial Statements. Our consolidated
financial statements have been prepared in accordance with
French GAAP, which differ in certain significant respects from
U.S. GAAP. In addition, this discussion contains forward-looking
statements that involve risks and uncertainties. Our actual
results could differ materially from those anticipated in these
forward-looking statements as a result of certain factors,
including those set forth under Cautionary
Note Regarding Forward-Looking Statements and
Item 3. Key Information  Risk
Factors and elsewhere in this document. You should read
the following discussion together with our Consolidated
Financial Statements included in this annual report.




| |        
| | -------
| | General





| |                                  
| | ---------------------------------
| | Changes in Scope of Consolidation





46



---



##### Table of Contents





| |                     
| | --------------------
| | Coflexip Acquisition



| |           
| | ----------
| | Year 2004:



|                                                                                                     |              |  |  |                 |   |  |         |        |  
|---------------------------------------------------------------------------------------------------- | ------------ |  |  | --------------- | - |  | ------- | ------ | -
|                                                                                                     |              |  |  | (in  millions) |  
|                                                                                                     |              |  |  |                 |  
|Creation of 5,504,436 Technip shares
    (147.99 a share)                                           |              |  |  |                 |   |  | 814.6   |       
|Cash paid for 5,000,000 Coflexip shares
    (199 a share)                                           |              |  |  |                 |   |  | 995.0   |       
|Net purchase costs                                                                                   |              |  |  |                 |   |  | 28.7    |       
|                                                                                                     |              |  |  |                 |   | 
|Purchase price for 52.47% in Coflexip                                                                |              |  |  |                 |   |  | 1,838.3 |       
|Coflexip net equity as of September 30, 2001 (52.47%)                                                |              |  |  |                 |   |  | (421.4  | )     
|                                                                                                     |              |  |  |                 |   | 
|Step-up for 52.47% in Coflexip                                                                       |              |  |  |                 |   |  | 1,416.9 |       
|Step-up for 16.63% in Coflexip via ISIS                                                              |              |  |  |                 |   |  | 253.1   |       
|                                                                                                     |              |  |  |                 |   | 
|Step-up for 69.1% in Coflexip                                                                        |              |  |  |                 |   |  | 1,670.0 |       
|Release of net goodwill recognized by Coflexip (foreign exchange
    effect included)                |              |  |  |                 |   |  | 503.5   |       
|Allocation to identified assets:                                                                     |              |  |  |                 |   |  |         |       
|                                                                                                     | Vessels      |  |  | (106.4          | ) |  |         |        |  
|                                                                                                     | Buildings    |  |  | (24.2           | ) |  |         |        |  
|                                                                                                     | Patents      |  |  | (59.4           | ) |  |         | (125.5 | )
|                                                                                                     | Deferred tax |  |  | 64.5            |   |  |         |        |  
|                                                                                                     |              |  |  |                 |   | 
|Goodwill 2001 (gross)                                                                                |              |  |  |                 |   |  | 2,048.0 |       
|                                                                                                     |              |  |  |                 |   | 
|Adjustment on Coflexip shares from ISIS (after merger)                                               |              |  |  |                 |   |  | 5.5     |       
|Gain on sales of CSO assets                                                                          |              |  |  |                 |   |  | (48.3   | )     
|Depreciation of U.S. deferred tax assets                                                             |              |  |  |                 |   |  | 13.8    |       
|Provisions for transfers                                                                             |              |  |  |                 |   |  | 32.1    |       
|Provisions and miscellaneous charges                                                                 |              |  |  |                 |   |  | 48.0    |       
|                                                                                                     |              |  |  |                 |   | 
|Goodwill 2002 after adjustments (gross)                                                              |              |  |  |                 |   |  | 2,099.1 |       
|                                                                                                     |              |  |  |                 |   | 
|Aker Deepwater Division price reduction                                                              |              |  |  |                 |   |  | (40.7   | )     
|Capital increase following the repurchase of minority interests
    for the Technip/ Coflexip merger |              |  |  |                 |   |  | 49.5    |       
|Book value of minority interests repurchased                                                         |              |  |  |                 |   |  | (14.3   | )     
|Other                                                                                                |              |  |  |                 |   |  | (1.0    | )     
|                                                                                                     |              |  |  |                 |   | 
|Goodwill 2003 after adjustments (gross)                                                              |              |  |  |                 |   |  | 2,092.6 |       
|                                                                                                     |              |  |  |                 |   | 
|Profit on merger adjustment                                                                          |              |  |  |                 |   |  | (4.9    | )     
|Goodwill 2004                                                                                        |              |  |  |                 |   |  | 2,087.7 |       
|                                                                                                     |              |  |  |                 |   | 



|                                                                        |                            |  |  |         |  |                 |  |  |         |         | 
|----------------------------------------------------------------------- | -------------------------- |  |  | ------- |  | --------------- |  |  | ------- | ------- | 
|                                                                        |                            |  |  |         |  | (in  millions) | 
|                                                                        |                            |  |  |         |  |                 | 
|Goodwill on the purchase of 29.4% of Coflexip shares (April 2000)       |                            |  |  |         |  |                 |  |  | 447.5   |        
|Goodwill on the purchase of 69.1% of Coflexip shares (October
    2001) |                            |  |  |         |  |                 |  |  |         |        
|                                                                        | after Aker price reduction |  |  | 2,087.7 |  |                 |  |  |         | 2,057.4 | 
|Goodwill on the Technip / Coflexip merger (July 2003)                   |                            |  |  |         |  |                 |  |  | 30.3    |        
|Total amortization at the end of December 2004                          |                            |  |  |         |  |                 |  |  | (375.7  | )      
|                                                                        |                            |  |  |         |  |                 |  | 
|Goodwill after adjustments (net)                                        |                            |  |  |         |  |                 |  |  | 2,159.5 |        

47



---



##### Table of Contents







| |   |                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The first one concerns the FLOATERS and floating
    facilities activity that relates mainly to the Aker
    Maritimes Deepwater division acquired by Coflexip in 2001;
    and
|
| |  | The second one concerns the SURF activity (Subsea,
    Umbilicals, Risers and Flowlines) and corresponds to the main
    activity of Coflexip before the acquisition of Aker:   

|                                                 |  |  |                  | 
|------------------------------------------------ |  |  | ---------------- | 
|Goodwill net, related to the Floaters activity |  |  | 307.4 million   | 
|Goodwill net, related to the SURF activity     |  |  | 1,852.1 million | 





| |          
| | ---------
| | Year 2003

  







| |          
| | ---------
| | Year 2002

Merger with ISIS:


Coflexip goodwill adjustment:




| |                                        
| | ---------------------------------------
| | Other Changes in Scope of Consolidation



| |          
| | ---------
| | Year 2004

   




48



---



##### Table of Contents







| |          
| | ---------
| | Year 2003

Additional participation in SEAMEC:




| |          
| | ---------
| | Year 2002

Disposal of minority stake in Ipedex and non-strategic assets
of Coflexip:




| |                             
| | ----------------------------
| | Critical Accounting Policies





| |                             
| | ----------------------------
| | Revenue and Cost Recognition









49



---



##### Table of Contents





| |                                                              
| | -------------------------------------------------------------
| | Goodwill Amortization and Impairment of Long-Lived
    Assets









| |                                                 
| | ------------------------------------------------
| | Useful Lives of Long-Lived Assets and Impairment







| |   |                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------
| |  | significant under-performance relative to expected historical or
    projected future operating results;             
|
| |  | significant changes in the manner of our use of the acquired
    assets or the strategy for our overall business; and
|
| |  | significant negative industry or economic trends.                                                                    





| |                    
| | -------------------
| | Pension Assumptions



50



---



##### Table of Contents





| |               
| | --------------
| | Deferred Taxes





| |                                                            
| | -----------------------------------------------------------
| | Principal Differences Between U.S. GAAP and French
    GAAP
















51



---



##### Table of Contents
















| |                                          
| | -----------------------------------------
| | Recently Issued Accounting Pronouncements





52



---



##### Table of Contents











| |                  
| | -----------------
| | Segment Reporting





| |                 
| | ----------------
| | Foreign Currency





53



---



##### Table of Contents



Foreign currency exposure.


Foreign currency transactions.


Outlook for 2005






| |   |                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------
| |  | an annual net sales increase of 9%, which we surpassed by
    reaching 9.1%;                                             
|
| |  | an annual increase in operating income of 13%, which we
    surpassed by reaching 13.6%;                                 
|
| |  | an annual increase in net income before goodwill amortization
    and non-operating income of 35%, which we achieved; and
|
| |  | to keep our gearing ratio below 20%, which we succeeded in doing.                                                        






| |   |                                                                              
| | - | -----------------------------------------------------------------------------
| |  | annual net sales of
    4.8 billion
    to
    4.9 billion;                
|
| |  | an operating margin ratio of greater than 5%; and                            
|
| |  | net income before goodwill or exceptional items of at least
    138 million.





| |   |                                                                    
| | - | -------------------------------------------------------------------
| |  | annual net sales of
    4.8 billion
    to 4.9 billon;           
|
| |  | an operating margin ratio of greater than 4.8%; and                
|
| |  | net income before exceptional items of at least
    112.4 million.



Recent Developments






| |   |                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 7,184 million
    in backlog for the period ended March 31, 2005, an increase
    of 11.4% over the
    6,451 million
    recorded for the period ended March 31, 2004;
|
| |  | 1,201 million
    in net sales, a decrease of 3.8% compared to the first quarter
    of 2004 where we recorded
    1,249 million
    in net sales;                     

54



---



##### Table of Contents





| |   |                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | net income of
    21.7 million
    in net income, a 9% improvement over the
    19.9 million
    recorded in the first quarter of 2004;                              
|
| |  | fully diluted earnings per share of
    1.01 per share,
    an improvement of 32.9% compared to the
    0.76 per share
    recorded in the first quarter of 2004; and
|
| |  | fully diluted earnings per ADS of U.S.$0.33 per share, a 32.9%
    increase from the U.S.$0.25 per ADS recorded in the first
    quarter of 2004.                      

Results of Operations for the Year Ended December 31,
2004, 
 Compared to the Year Ended December 31, 2003




| |          
| | ---------
| | Net Sales

 


Backlog.  


     


 


 




| |                      
| | ---------------------
| | Net sales by activity

Offshore.     


55



---



##### Table of Contents






Onshore/Downstream.  


Industries.  




| |                             
| | ----------------------------
| | Net Sales by geographic area

Europe, Russia  Central Asia.  


Africa, Middle East.   


Asia/Pacific.  


Americas.  




| |              
| | -------------
| | Cost of Sales

  


56



---



##### Table of Contents








| |                                             
| | --------------------------------------------
| | Selling, General and Administrative Expenses

 




| |                                  
| | ---------------------------------
| | Research and Development Expenses

 




| |                                                                   
| | ------------------------------------------------------------------
| | Operating income before depreciation and goodwill
    amortization



|                                                                           |  |                 |        |   |      |  |        |      |  |  |        |  
|-------------------------------------------------------------------------- |  | --------------- | ------ | - | ---- |  | ------ | ---- |  |  | ------ | -
|                                                                           |  | 2004            |        |   | 2003 |  |        | 2002 | 
|                                                                           |  |                 |        |   |      |  |        |      | 
|                                                                           |  | (in  millions) |       
|Operating income before depreciation and goodwill amortization             |  |                 |        |   |      |  |        |      |  |  |        |  
| Offshore                                                                 |  |                 | 267.1  |   |      |  | 242.7  |      |  |  | 250.1  |  
| Onshore/ Downstream                                                      |  |                 | 109.1  |   |      |  | 100.4  |      |  |  | 85.3   |  
| Industries                                                               |  |                 | (1.5   | ) |      |  | 2.4    |      |  |  | 12.2   |  
|                                                                           |  |                 |        |   |      |  |        |      | 
|Total                                                                      |  |                 | 374.7  |   |      |  | 345.5  |      |  |  | 347.6  |  
|Less:                                                                      |  |                 |        |   |      |  |        |      |  |  |        |  
|Depreciation and amortization other than goodwill                          |  |                 | (116.2 | ) |      |  | (117.9 | )    |  |  | (143.0 | )
|Subtotal:                                                                  |  |                 |        |   |      |  |        |      |  |  |        |  
|Operating Income                                                           |  |                 | 258.5  |   |      |  | 227.6  |      |  |  | 204.6  |  
|Less:                                                                      |  |                 |        |   |      |  |        |      |  |  |        |  
|Financial result                                                           |  |                 | (54.0  | ) |      |  | (44.3  | )    |  |  | (66.9  | )
|Less:                                                                      |  |                 |        |   |      |  |        |      |  |  |        |  
|Income tax                                                                 |  |                 | (65.2  | ) |      |  | (82.0  | )    |  |  | (46.3  | )
|Non Operating loss, Income of equity affiliates and Minority
    Interests |  |                 | (17.3  | ) |      |  | (7.3   | )    |  |  | (3.0   | )
|Less:                                                                      |  |                 |        |   |      |  |        |      |  |  |        |  
|Goodwill Amortization                                                      |  |                 | (117.3 | ) |      |  | (113.7 | )    |  |  | (117.8 | )
|Net Income                                                                 |  |                 | 4.7    |   |      |  | (19.7  | )    |  |  | (29.4  | )

 


Operating income before depreciation and goodwill
amortization by segment (operating margin).


    


57



---



##### Table of Contents






 


 


Operating income before depreciation and goodwill
amortization by geographic zone.


|                                                                                      |  |                 |        |   |      |  |        |      |  |  |        |  
|------------------------------------------------------------------------------------- |  | --------------- | ------ | - | ---- |  | ------ | ---- |  |  | ------ | -
|                                                                                      |  | 2004            |        |   | 2003 |  |        | 2002 | 
|                                                                                      |  |                 |        |   |      |  |        |      | 
|                                                                                      |  | (in  millions) |       
|Operating income before depreciation and goodwill amortization
    by geographic zone |  |                 |        |   |      |  |        |      |  |  |        |  
| Europe and Russia/ Central Asia                                                     |  |                 | 135.1  |   |      |  | 118.9  |      |  |  | 148.4  |  
| Africa/ Middle East                                                                 |  |                 | 138.0  |   |      |  | 144.3  |      |  |  | 102.9  |  
| Asia Pacific                                                                        |  |                 | 47.6   |   |      |  | 23.2   |      |  |  | 22.1   |  
| Americas                                                                            |  |                 | 54.0   |   |      |  | 59.1   |      |  |  | 74.2   |  
|                                                                                      |  |                 |        |   |      |  |        |      | 
|Total                                                                                 |  |                 | 374.7  |   |      |  | 345.5  |      |  |  | 347.6  |  
|Less:                                                                                 |  |                 |        |   |      |  |        |      |  |  |        |  
|Depreciation and amortization other than goodwill                                     |  |                 | (116.2 | ) |      |  | (117.9 | )    |  |  | (143.0 | )
|Subtotal:                                                                             |  |                 |        |   |      |  |        |      |  |  |        |  
|Operating Income                                                                      |  |                 | 258.5  |   |      |  | 227.6  |      |  |  | 204.6  |  
|Less:                                                                                 |  |                 |        |   |      |  |        |      |  |  |        |  
|Financial result                                                                      |  |                 | (54.0  | ) |      |  | (44.3  | )    |  |  | (66.9  | )
|Less:                                                                                 |  |                 |        |   |      |  |        |      |  |  |        |  
|Income tax                                                                            |  |                 | (65.2  | ) |      |  | (82.0  | )    |  |  | (46.3  | )
|Non Operating loss, Income of equity affiliates and Minority
    Interest             |  |                 | (17.3  | ) |      |  | (7.3   | )    |  |  | (3.0   | )
|Less:                                                                                 |  |                 |        |   |      |  |        |      |  |  |        |  
|Goodwill Amortization                                                                 |  |                 | (117.3 | ) |      |  | (113.7 | )    |  |  | (117.8 | )
|Net Income                                                                            |  |                 | 4.7    |   |      |  | (19.7  | )    |  |  | (29.4  | )

Europe and Russia/ Central Asia  


Africa/ Middle East  


Asia Pacific  


58



---



##### Table of Contents



Americas  




| |                 
| | ----------------
| | Operating Income

Depreciation and amortization other goodwill.  


 




| |                 
| | ----------------
| | Financial result

     




| |                            
| | ---------------------------
| | Income of Equity Affiliates

 




| |                   
| | ------------------
| | Non-operating Loss

     


   




| |           
| | ----------
| | Income Tax

  




| |                   
| | ------------------
| | Minority Interests

 




| |                      
| | ---------------------
| | Goodwill amortization

  


59



---



##### Table of Contents





| |                  
| | -----------------
| | Net Income (loss)

   


Results of Operations for the Year Ended December 31,
2003, 
 Compared to the Year Ended December 31, 2002




| |          
| | ---------
| | Net Sales

 


Backlog.  




Net sales by segment.  


 


 


Net sales by geographic area.  


60



---



##### Table of Contents



 


 


 




| |              
| | -------------
| | Cost of Sales

   




| |                                  
| | ---------------------------------
| | Research and Development Expenses

 




| |                                             
| | --------------------------------------------
| | Selling, General and Administrative Expenses

 




| |                                                                   
| | ------------------------------------------------------------------
| | Operating income before depreciation and goodwill
    amortization

 


Operating income before depreciation and goodwill
amortization by segment.


 


 


61



---



##### Table of Contents





 


Operating income before depreciation and goodwill
amortization by geographic zone.  


 


 


 




| |                 
| | ----------------
| | Operating Income

Depreciation and amortization other than goodwill.   


 




| |                 
| | ----------------
| | Financial result

       


62



---



##### Table of Contents





| |                            
| | ---------------------------
| | Income of Equity Affiliates

 




| |                   
| | ------------------
| | Non-operating Loss

     


   




| |           
| | ----------
| | Income Tax

  




| |                   
| | ------------------
| | Minority Interests

 




| |                      
| | ---------------------
| | Goodwill amortization

 




| |                  
| | -----------------
| | Net Income (loss)

 


 


Cash Flows




| |                      
| | ---------------------
| | 2004 compared to 2003

Cash flow from operating activities. 


       


63



---



##### Table of Contents



 


Cash flow from investing activities.  


 


  


 


Cash flow from financing activities.       




| |                      
| | ---------------------
| | 2003 compared to 2002

Cash flow from operating activities.  


   


  


 


Cash flow from investing activities.    


  


64



---



##### Table of Contents



 


 


Cash flow from financing activities.     


Liquidity and Capital Resources




     




|                                        |  |                 |          |   |      |  |          |      |  |  |          |  
|--------------------------------------- |  | --------------- | -------- | - | ---- |  | -------- | ---- |  |  | -------- | -
|                                        |  | December 31,    |         
|                                        |  |                 |         
|                                        |  | 2004            |          |   | 2003 |  |          | 2002 | 
|                                        |  |                 |          |   |      |  |          |      | 
|                                        |  | (in  millions) |         
|Contracts-in-progress                   |  |                 | 6,593.4  |   |      |  | 6,368.2  |      |  |  | 4,896.2  |  
|Inventories and deferred bid costs, net |  |                 | 98.2     |   |      |  | 73.6     |      |  |  | 80.8     |  
|Advances to suppliers                   |  |                 | 249.4    |   |      |  | 244.6    |      |  |  | 122.5    |  
|Accounts and notes receivables, net     |  |                 | 594.8    |   |      |  | 755.6    |      |  |  | 725.6    |  
|Other current assets, net               |  |                 | 705.3    |   |      |  | 427.7    |      |  |  | 521.6    |  
|Less:                                   |  |                 |          |   |      |  |          |      |  |  |          |  
|Retirement indemnities                  |  |                 | (70.8    | ) |      |  | (89.3    | )    |  |  | (86.3    | )
|Accrued liabilities                     |  |                 | (251.9   | ) |      |  | (234.8   | )    |  |  | (242.5   | )
|Progress payments on contracts          |  |                 | (7,353.6 | ) |      |  | (7,047.8 | )    |  |  | (5,420.2 | )
|Accounts and notes payable              |  |                 | (852.5   | ) |      |  | (783.1   | )    |  |  | (720.8   | )
|Other creditors                         |  |                 | (808.2   | ) |      |  | (691.9   | )    |  |  | (756.1   | )
|                                        |  |                 |          |   |      |  |          |      | 
|Working capital requirements            |  |                 | (1,095.9 | ) |      |  | (977.2   | )    |  |  | (879.2   | )
|                                        |  |                 |          |   |      |  |          |      | 

      


65



---



##### Table of Contents



  


      


     


  


  


  


   








        


  


66



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##### Table of Contents



      


        


       


Contractual Obligations and Other Commitments




|                        |  |                 |         |  |                 |  |       |           |  |  |           |  |  |            |      |  |  |  |       | 
|----------------------- |  | --------------- | ------- |  | --------------- |  | ----- | --------- |  |  | --------- |  |  | ---------- | ---- |  |  |  | ----- | 
|                        |  | Balance as of   |         |  | Payments due in | 
|                        |  | year end        |         |  |                 | 
|Contractual Obligations |  | 2004            |         |  | 2005            |  |       | 2006-2007 |  |  | 2008-2009 |  |  | Thereafter |     
|                        |  |                 |         |  |                 |  |       |           |  |  |           |  |  |            |     
|                        |  | (in  millions) |        
|Short-Term Debt         |  |                 | 194.4   |  |                 |  | 194.4 |           |  |  |          |  |  |            |     |  |  |  |      | 
|Long-Term Debt          |  |                 | 1,367.7 |  |                 |  |      |           |  |  | 633.3     |  |  |            | 80.9 |  |  |  | 653.5 | 
|Operating Leases        |  |                 | 369.4   |  |                 |  | 41.7  |           |  |  | 78.3      |  |  |            | 71.0 |  |  |  | 178.4 | 
|Capital Leases          |  |                 |        |  |                 |  |      |           |  |  |          |  |  |            |     |  |  |  |      | 



67



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##### Table of Contents



|                                                          |  |                |       | 
|--------------------------------------------------------- |  | -------------- | ----- | 
|                                                          |  | Balance as of  |      
|Other Commitments                                         |  | year end 2004* |      
|                                                          |  |                |      
|Buy currency, sell national currency (forwards and swaps) |  |                | 233.9 | 
|Sell currency, buy national currency (forwards and swaps) |  |                | 710.2 | 
|Sell/ Buy foreign currencies                              |  |                | 343.0 | 






|  |               
|- | --------------
|* | Nominal value.

Off-Balance Sheet Financing Arrangements




|                                  |  |             |          |  |          |  |         |           |  |  |           |  |  |            |         |  |  |  |         | 
|--------------------------------- |  | ----------- | -------- |  | -------- |  | ------- | --------- |  |  | --------- |  |  | ---------- | ------- |  |  |  | ------- | 
|                                  |  | Total as of |          |  | Payments | 
|                                  |  | year end    |          |  |          | 
|                                  |  | 2004        |          |  | 2005     |  |         | 2006-2007 |  |  | 2008-2009 |  |  | Thereafter |        
|                                  |  |             |          |  |          |  |         |           |  |  |           |  |  |            |        
|Foreign exchange rate instruments |  |             | 1,287.1  |  |          |  | 1,119.9 |           |  |  | 167.2     |  |  |            |        |  |  |  |        | 
|Interest rate instruments         |  |             | 80.0     |  |          |  |        |           |  |  | 80.0      |  |  |            |        |  |  |  |        | 
|Parent company guarantees         |  |             | 13,789.9 |  |          |  | 3,721.3 |           |  |  | 3,121.8   |  |  |            | 6,094.6 |  |  |  | 852.2   | 
|Others commitments given          |  |             | 1,418.6  |  |          |  | 146.8   |           |  |  | 117.3     |  |  |            | 962.2   |  |  |  | 192.3   | 
|Total commitments given           |  |             | 15,208.5 |  |          |  | 3,868.1 |           |  |  | 3,155.6   |  |  |            | 7,140.3 |  |  |  | 1,044.5 | 
|Total commitments received        |  |             | 539.4    |  |          |  | 208.5   |           |  |  | 235.7     |  |  |            | 94.8    |  |  |  | 0.4     | 

Guarantees Related to Contracts






Parent Guarantees to Clients




Other Material Financial Elements




68



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##### Table of Contents





Transition to International Financial Reporting Standards
(IFRS)






69



---



##### Table of Contents






Item 6.     Directors, Senior
Management and Employees


Directors and Officers


société
anonyme conseil dadministration


Directeur
Général statuts




statuts statuts






| |                       
| | ----------------------
| | Our Board of Directors

statuts statuts




70



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##### Table of Contents











| |   |                                                                                                                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | appoint the Chairman, the Chief Executive Officer and the
    managing directors (directeurs délégués
    généraux);                                                                                                                                                                     
|
| |  | define the strategy of the Company with the assistance of the
    strategic committee, and discuss the major transactions planned
    by the Group;                                                                                                                                      
|
| |  | remain informed of all important events concerning the running
    of the Company and, in particular, investments and divestures
    superior to three percent of shareholders equity;                                                                                                  
|
| |  | proceed with the controls and verifications that are deemed
    suitable with the assistance of the audit committee;                                                                                                                                                                     
|
| |  | monitor the proper functioning of the internal control elements
    and of the satisfying character of the conditions of doing their
    mission by the auditors;                                                                                                                        
|
| |  | monitor the proper functioning of the committees that it has
    created;                                                                                                                                                                                                                
|
| |  | monitor the quality of our disclosure provided to our
    shareholders and to the financial markets, with the assistance
    of the audit committee;                                                                                                                                     
|
| |  | convene and set the agenda for shareholders meetings;                                                                                                                                                                                                                                   
|
| |  | establish each year the list of directors considered independent
    pursuant to corporate governance criteria, taking into
    consideration the applicable standards and recommendations, as
    needed, on the trading markets where the securities of the
    Company are traded; and
|
| |  | authorize the regulated agreements and the sureties, guarantees
    and warranties given by the Company.                                                                                                                                                                                 





jetons de présence




71



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##### Table of Contents





|                           |  |             |      |  |                         |                                        |         |  |      | 
|-------------------------- |  | ----------- | ---- |  | ----------------------- | -------------------------------------- | ------- |  | ---- | 
|                           |  | Initial     |      |  |                         |                                        | Term    | 
|Name, Age, Citizenship(1)  |  | Appointment |      |  | Responsibility on Board |                                        | Expires | 
|                           |  |             |      |  |                         |                                        |         | 
|Daniel Valot (60)          |  |             | 1996 |  |                         | Chairman of the Board
    and Director |         |  | 2006 | 
|Olivier Appert (56)        |  |             | 2003 |  |                         | Director                               |         |  | 2006 | 
|Roger Cairns (62)          |  |             | 2001 |  |                         | Director                               |         |  | 2006 | 
|(United Kingdom)           |  |             |      |  |                         |                                        |         |  |      | 
|Miguel Caparros (61)       |  |             | 1995 |  |                         | Director                               |         |  | 2006 | 
|(Spain)                    |  |             |      |  |                         |                                        |         |  |      | 
|Jacques Deyirmendjian (60) |  |             | 2000 |  |                         | Director                               |         |  | 2006 | 
|Jean-Pierre Lamoure (56)   |  |             | 1998 |  |                         | Director                               |         |  | 2006 | 
|Daniel Lebègue (61)        |  |             | 2003 |  |                         | Director                               |         |  | 2006 | 
|Roger Milgrim (68)         |  |             | 2001 |  |                         | Director                               |         |  | 2006 | 
|(United States)            |  |             |      |  |                         |                                        |         |  |      | 
|Rolf-Erik Rolfsen (64)     |  |             | 2001 |  |                         | Director                               |         |  | 2006 | 
|(Norway)                   |  |             |      |  |                         |                                        |         |  |      | 
|Pierre Vaillaud (70)       |  |             | 1992 |  |                         | Director                               |         |  | 2006 | 
|Bruno Weymuller (56)       |  |             | 1995 |  |                         | Director                               |         |  | 2006 | 






|    |                                                               
|--- | --------------------------------------------------------------
|(1) | Unless noted otherwise, our board members are French citizens.





| |   |                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------
| |  | approving the financial statements and the consolidated
    financial statements for the financial year 2003;                                     
|
| |  | examining the report plans and the resolutions to be proposed to
    the shareholders meeting and setting an agenda;                             
|
| |  | evaluating the functioning of the board of directors and its
    committees;                                                                      
|
| |  | deciding to proceed with an issuance of debentures;                                                                                               
|
| |  | responding to written questions by a shareholder before the
    shareholders meeting;                                                            
|
| |  | reviewing the report of the strategic committee;                                                                                                  
|
| |  | approving the code of ethics plan for Senior Executives and
    Financial Officers;                                                               
|
| |  | reviewing the internal control procedures relating to the
    preparation and execution of contracts;                                             
|
| |  | reviewing quarterly accounts and reports of activity;                                                                                             
|
| |  | deciding to proceed with the payment of interim dividends;                                                                                        
|
| |  | recommending the budget for 2005 and a three-year plan; and                                                                                       
|
| |  | renewing the powers of the Chairman of the Board of Directors
    for the financial year 2005 in terms of guaranties, sureties and
    warranties.

72



---



##### Table of Contents





| |                                      
| | -------------------------------------
| | Biographies of Our Board of Directors

Daniel Valot. Institut Français du Pétrole Institut dEtudes Politiques de Paris Ecole
Nationale dAdministration


Olivier Appert. Institute
Français du Pétrole École
Polytechnique Ecole des Mines de Paris.


Roger Cairns.


Miguel Caparros. Institut de Paléontologie Humaine Ecole des Hautes Etudes Commerciales


Jacques Deyirmendjian. Ecole Polytechnique Ecole Nationale
dAdministration


Jean-Pierre Lamoure. Fédération Nationale des
Travaux Publics Compagnie du Sol Ecole Polytechnique Ecole des
Mines de Paris.


73



---



##### Table of Contents



Daniel Lebègue. Institut dEtudes
Politiques de Lyon Institut du Développement
Durable et des Relations Internationales Caisse des Dépots et
Consignations Institute Français des Administrateurs Institut
dEtudes Politiques de Lyon Ecole Nationale
dAdministration


Roger M. Milgrim.


Rolf-Erik Rolfsen.


Pierre Vaillaud. Ecole Polytechnique


Bruno Weymuller. Ecole Polytechnique Ecole des Mines de
Paris




| |                                                                   
| | ------------------------------------------------------------------
| | Audit, Nominations and Remunerations, and Strategic
    Committees



Audit committee.




| |   |                                                                                                                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | recommending the appointment of the statutory auditors to the
    board of directors, as well as for their remuneration and
    ensuring their independence;                                                                                                                                                                                                               
|
| |  | recommending rules for the statutory auditors regarding
    procedures for engagements other than the auditing of the
    accounts in order to guarantee the independence of the auditing
    provided by the statutory auditors in accordance with rules,
    regulations and recommendations applicable to the Company and to
    ensure that they are applied correctly;
|
| |  | giving prior authorization to the statutory auditors for all
    proceedings regarding engagements other than auditing in
    accordance with the conditions described below;                                                                                                                                                                                              
|
| |  | analyzing the assumptions used in the closing of accounts,
    reviewing the Companys accounts and the annual and interim
    consolidated accounts prior to the board of directors
    review by remaining informed                                                                                                                                                     

74



---



##### Table of Contents



| |   |                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | of the Companys financial situation, liquidity and
    commitments, and the statutory auditors audit report on
    the annual and semi-annual financial statements;                                                                                                                                                                                                                                
|
| |  | evaluating the internal audit procedures as well as any other
    adopted measures in order to correct any significant problems in
    the internal audit;                                                                                                                                                                                                                                           
|
| |  | reviewing the annual programs of responsibilities of the
    internal and external auditors;                                                                                                                                                                                                                                                                                                         
|
| |  | evaluating the relevance of the risk analysis procedures;                                                                                                                                                                                                                                                                                                                                            
|
| |  | evaluating the relevance of the adopted accounting principles
    and methods in conjunction with the statutory auditors;                                                                                                                                                                                                                                                                            
|
| |  | consulting the Chairman and Chief Financial Officer of the
    Company, between the end of the financial year and the date on
    which the audit committee decides on the draft of the annual
    accounts, on the relevance of the adopted accounting principles
    and methods, the efficiency of the control procedures for
    accounting and any other relevant matters;                      
|
| |  | reviewing the conditions under which derivative products are
    used;                                                                                                                                                                                                                                                                                                                               
|
| |  | remaining informed of significant legal proceedings;                                                                                                                                                                                                                                                                                                                                                 
|
| |  | examining the procedures required to be implemented regarding
    the receipt, conservation and treatment of claims related to
    accounting and internal accounting control, matters related to
    the auditing of accounts as well as documents sent by employees
    on an anonymous and confidential basis which would bring into
    question the accounting practices or auditing procedures;
|
| |  | advising and providing, in a general manner, all appropriate
    recommendations on the above issues;                                                                                                                                                                                                                                                                                                
|
| |  | examining and analyzing the external audit reports;                                                                                                                                                                                                                                                                                                                                                  
|
| |  | reviewing financial accounts (consolidated and non-consolidated)
    to be presented to the board;                                                                                                                                                                                                                                                                                                   
|
| |  | reviewing external communications related to the Companys
    financial situation; and                                                                                                                                                                                                                                                                                                              
|
| |  | reviewing its functioning and recommending appropriate
    modifications to the board to improve its operations.                                                                                                                                                                                                                                                                                     



jetons de présence)






75



---



##### Table of Contents







| |   |                                                                                     
| | - | ------------------------------------------------------------------------------------
| |  | yearly and quarterly consolidated results releases and financial
    statements;    
|
| |  | the transition to IFRS accounting standards and eventual impact
    on our accounts;
|
| |  | the recommendation to appoint our statutory auditors;                               
|
| |  | approval of the scope of audit, audit-related and non-audit
    related services;   
|
| |  | the designation of Daniel Lebègue as our Audit Committee
    Financial Expert;      
|
| |  | certain contracts requiring particular attention;                                   
|
| |  | internal control procedures;                                                        
|
| |  | cashflow forecasts for 2005;                                                        
|
| |  | the impact of Sarbanes-Oxley provisions in relation to internal
    management; and 
|
| |  | credit ratings.                                                                     



Nominations and remunerations committee.




| |   |                                                                                                                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | to recommend to the board of directors the people that should be
    nominated as directors, chairman, chief executive officer and
    other managing directors (directeurs généraux
    délégués), as necessary, as well as to
    prepare corporate governance rules for the Company; and             
|
| |  | examine the executive compensation policies implemented in the
    Group and the remuneration of the members of senior management,
    to propose the remuneration of the chairman and chief executive
    officer, other managing directors, as appropriate, and prepare a
    report on the foregoing.





| |   |                                                                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | presenting to the board of directors recommendations on the
    composition of the board of directors and its committees;                                                                                                                                                                                                  
|
| |  | proposing to the board of directors, on an annual basis, a list
    of directors qualified as independent directors of
    the Company pursuant to applicable recommendations in France and
    stock exchange rules where our securities are listed;                                                                    
|
| |  | assisting the board of directors in the choice and evaluation of
    the Chairman, the Chief Executive Officer and other managing
    directors (directeurs généraux
    délégués), as the case may be;                                                                                                                    
|
| |  | developing and recommending to the board of directors a set of
    corporate governance principles;                                                                                                                                                                                                                        
|
| |  | formulating to the board of directors recommendations and
    proposals concerning the remuneration, retirement and health
    plans, benefits in kind and other financial rights, including,
    in case of retirement, of the Chairman, the Chief Executive
    Officer and other managing directors, as the case may be;
|
| |  | formulating to the board of directors recommendations and
    proposals concerning allocation of stock purchase and
    subscription options, and in particular, those allocated to the
    Chairman and Chief Executive Officer and other managing
    directors (directeurs généraux
    délégués), as the case may be;  
|
| |  | reviewing policies related to the remuneration of members of the
    senior management, including stock options, equity-based plans,
    retirement and health plans and benefits in kind; and                                                                                                                             

76



---



##### Table of Contents





| |   |                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | formulating to the board of directors recommendations and
    proposals concerning allocation of directors fees
    (jetons de présence) and reimbursement of expenses.

jetons
de présence)










| |   |                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | proposed to the board of directors a list of directors qualified
    as independent directors;                                                                                                                                        
|
| |  | examined the Companys draft report with respect to the
    remuneration of Executives;                                                                                                                                               
|
| |  | examined the total amount of directors fees (jetons de
    présence) and its allocation;                                                                                                                                             
|
| |  | studied policies and practices related to the compensation of
    other senior executive officers;                                                                                                                                    
|
| |  | recommended to the board of directors the remuneration of our
    Chairman and Chief Executive Officer (variable portion for 2003,
    the base remuneration for 2004 and the criteria for determining
    the variable part of 2004);
|
| |  | examined the remuneration for the senior management (variable
    portion for 2003, base remuneration for 2004 and criteria for
    determining the variable part of 2004);                                                           
|
| |  | recommended criteria for the determination of variable portions
    of remuneration for 2005; and                                                                                                                                     
|
| |  | examined a project for the creation of a supplementary
    retirement plan for management position.                                                                                                                                   



Strategic committee.




| |   |                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | review the global strategic of the Group as proposed by our
    chairman and chief executive officer;                                                              
|
| |  | review the capital expenditure and investment budget;                                                                                                              
|
| |  | examine any major acquisition or disposal and associated
    financing; and                                                                                        
|
| |  | review any transaction outside the ordinary course of business
    susceptible of serious business risk, presented by our chairman
    and chief executive officer.

77



---



##### Table of Contents



jetons de présence










| |   |                                                   
| | - | --------------------------------------------------
| |  | new acquisition and disposal projects;            
|
| |  | investments and research and development projects;
|
| |  | strategic options; and                            
|
| |  | the budget for 2005 and the three-year plan.      



| |                                                                                        
| | ---------------------------------------------------------------------------------------
| | Summary of significant differences with NYSE corporate
    governance listing standards





| |                               
| | ------------------------------
| | Executive Management Committee





| |             
| | ------------
| | Compensation

  jetons de présence


78



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##### Table of Contents



   jetons de présence 





jetons de
présence




| |   |                                                                                                                                                                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 100,000 divided
    into equal parts among the board of directors (with the
    exception of the Chairman who does not receive directors
    fees), or 10,000
    per director;                                                                                                                                                       
|
| |  | a supplementary sum of
    30,000 divided
    equally among directors living in Europe but not in France
    (i.e.,three directors);                                                                                                                                                                                                    
|
| |  | a supplementary sum of
    20,000 is
    allocated to the only director living outside of Europe;                                                                                                                                                                                                                                       
|
| |  | a supplementary sum of
    67,000 for the
    year 2004, taking into account the attendance rate of the
    participants since January 1, 2004, is divided between the
    directors (other than the Chairman) at the fixed amount of
    500 per session
    (of the board or of the committee) to each participant in
    attendance:
|
| |  | however, this fixed amount is raised to:                                                                                                                                                                                                                                                                                                 



| |   |                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------
| |  | 1,000 for the
    Chairman of the Strategic Committee and the Nominations and
    Remunerations Committee; and    
|
| |  | for the audit committee, the fee is set at
    1,000 for each
    participant and
    2,000 for the
    Chairman.



|                                          |       |              |         |           | 
|----------------------------------------- | ----- | ------------ | ------- | --------- | 
|                                          |       | Amount of    |        
|Members of the Board of Directors in 2004 |       | Compensation |        
|                                          |       |              |        
|D. Valot                                  |       |             | 963,080 | (1)      
|O. Appert                                 |       |             | 14,000  |          
|R. Cairns                                 |       |             | 25,000  |          
|M. Caparros                               |       |             | 26,500  |          
|J. Deyirmendjian                          |       |             | 16,500  |          
|J.P. Lamoure                              |       |             | 14,000  |          
|D. Lebègue                                |       |             | 25,500  |          
|R. Milgrim                                |       |             | 38,500  |          
|R.E. Rolfsen                              |       |             | 24,500  |          
|P. Vaillaud                               |       |             | 18,500  |          
|B. Weymuller                              |       |             | 14,000  |          
|                                          |       |              |        
|                                          | Total |              |        | 1,180,080 | 






|    |                                                                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Mr. Valot was paid a fixed salary of
    580,000 in 2004,
    received a bonus of
    379,420 in 2004
    in respect of his performance in fiscal 2003 and use of a
    company car for
    3,660.

jetons de présence


79



---



##### Table of Contents



Share Ownership




Options






|                                                                 |                                                                                                        |                |               |         |              |           |               |              |     |  |                 |        |  |              |               |         |  |  |               |   | 
|---------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------ | -------------- | ------------- | ------- | ------------ | --------- | ------------- | ------------ | --- |  | --------------- | ------ |  | ------------ | ------------- | ------- |  |  | ------------- | - | 
|                                                                 |                                                                                                        | 1999/2001 Plan |               |         | 2002 Plan    |          
|                                                                 |                                                                                                        |                |               |         |              |          
|                                                                 |                                                                                                        |                |               |         |              | Tranche B |              
|                                                                 |                                                                                                        | 2000 tranche   |               |         | 2000 tranche |           |               | Tranche A    |     |  | Tranche B       |        |  | Remainder    |              
|                                                                 |                                                                                                        | Subscription   |               |         | Purchase     |           |               | Subscription |     |  | Subscription    |        |  | Subscription |              
|                                                                 |                                                                                                        | Options        |               |         | Options      |           |               | Options      |     |  | Options         |        |  | Options      |              
|                                                                 |                                                                                                        |                |               |         |              |           |               |              |     |  |                 |        |  |              |              
|Date of shareholders meeting                                    |                                                                                                        |                | Apr. 28, 2000 |         |              |           | Apr. 28, 2000 |              |     |  | August 24, 2001 |        |  |              | June 20, 2002 |         |  |  | June 20, 2002 |  
|Date of board resolution                                         |                                                                                                        |                | Dec. 14, 2000 |         |              |           | Dec. 14, 2000 |              |     |  | Dec. 9, 2002    |        |  |              | Dec. 9, 2002  |         |  |  | May 21, 2003  |  
|Number of holders per tranche                                    |                                                                                                        |                | 1,100         | (7)     |              |           | 1,100         | (7)          |     |  | 400             |        |  |              | 850           |         |  |  | 7             |  
|Number of options authorized(2)                                  |                                                                                                        |                | 1% of capital |         |              |           | 1% of capital |              |     |  | 1% of capital   |        |  |              | 2% of capital |         |  |  | 5,240 shares  |  
|Number of options allocated                                      |                                                                                                        |                | 493,028       | (1)     |              |           | 139,576       | (1)          |     |  | 234,080         |        |  |              | 462,920       |         |  |  | 5,200         |  
|Total number of shares available for subscription/purchase(3):   |                                                                                                        |                | 414,678       |         |              |           | 139,576       |              |     |  | 201,610         |        |  |              | 448,170       |         |  |  | 5,200         |  
|                                                                 | Of which: Number of shares available to directors and senior
    management for subscription/ purchase |                |               | 120,800 | (1)          |           |               | 120,800      | (1) |  |                 | 29,000 |  |              |               | 139,000 |  |  |               | 0 | 
|                                                                 | Of which: Number of directors and senior management concerned                                          |                |               | 17      |              |           |               | 17           |     |  |                 | 4      |  |              |               | 16      |  |  |               | 0 | 
|Vesting date for exercise of options(4)                          |                                                                                                        |                | Dec. 15, 2003 |         |              |           | Dec. 15, 2003 |              |     |  | Dec. 10, 2005   |        |  |              | Dec. 10, 2005 |         |  |  | May 22, 2006  |  
|Expiration date(5)(6)                                            |                                                                                                        |                | Dec. 14, 2008 |         |              |           | Dec. 14, 2008 |              |     |  | Dec. 9, 2008    |        |  |              | Dec. 9, 2008  |         |  |  | May 21, 2009  |  
|Subscription/purchase price per Share                            |                                                                                                        |                | 143.24       |         |              |           | 143.24       |              |     |  | 71.95          |        |  |              | 71.95        |         |  |  | 73.98        |  
|Number of shares subscribed/purchased at 12/31/04                |                                                                                                        |                | 0             |         |              |           | 0             |              |     |  | 0               |        |  |              | 900           |         |  |  | 0             |  
|Shares remaining available for subscription/exercise at 12/31/04 |                                                                                                        |                | 414,678       |         |              |           | 139,576       |              |     |  | 0               |        |  |              | 0             |         |  |  | 0             |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The options granted as part of this 1999-2001 plan, tranche
    2000, relate to a maximum of 632,604 shares. The rules for this
    tranche state that a maximum of 139,576 share purchase options
    will be granted first. Therefore, the initial exercises of
    options will be for the transfer of 139,576 shares held by us
    and the remaining 493,028 options will be considered as share
    subscription options.
|   
|(2) | The number of options authorized was determined as a percentage
    of our share capital as of the date the board of directors
    exercised the authorization.                                                                                                                                                                                                                                                                
|   
|(3) | The number of shares available for subscription is less than the
    number of options allocated due to the departure of the employee
    holding them.                                                                                                                                                                                                                                                                        
|   
|(4) | The options for each tranche have different vesting dates. In
    each case, the date indicated is that of the first day of
    vesting for the shares issued with respect to the relevant
    tranche.                                                                                                                                                                                                                        
|   
|(5) | The options for each tranche have different expiration dates. In
    each case, the date indicated is that of the day of expiration
    for the shares issued with respect to the relevant tranche.                                                                                                                                                                                                                            

80



---



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|    |                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(6) | All the plans are subject to certain restrictions limiting the
    exercise of options in the event of the employees or
    directors departure from Technip. Holders of options may
    not exercise their options immediately following their
    allocation. The options may be exercised only three years
    following the date of grant of the options for a period of two,
    three or five years after the grant.
|   
|(7) | This number includes holders of share subscription and share
    purchase options for tranche 2000 of the 1999-2001 Plan.                                                                                                                                                                                                                                                                                                   

i.e.,


|                                                                 |  |              |               |  |              |  |              |              |  |  |               |  |  |          |               |  |  |  |               | 
|---------------------------------------------------------------- |  | ------------ | ------------- |  | ------------ |  | ------------ | ------------ |  |  | ------------- |  |  | -------- | ------------- |  |  |  | ------------- | 
|                                                                 |  | CSO Plan 9.2 |               |  | CSO Plan 9.3 |  |              | CSO Plan 10  |  |  | CSO Plan 11   |  |  | CSO Plan |              
|                                                                 |  | Subscription |               |  | Subscription |  |              | Subscription |  |  | Subscription  |  |  | Purchase |              
|                                                                 |  | Options      |               |  | Options      |  |              | Options      |  |  | Options       |  |  | Options  |              
|                                                                 |  |              |               |  |              |  |              |              |  |  |               |  |  |          |              
|Date of shareholders meeting(1)                                 |  |              | May 21, 1996  |  |              |  | May 21, 1996 |              |  |  | Jun. 2, 1999  |  |  |          | May 30, 2000  |  |  |  | May 30, 2000  | 
|Date of Board resolution(2)                                      |  |              | Mar. 24, 1997 |  |              |  | May 18, 1998 |              |  |  | Dec. 14, 1999 |  |  |          | Mar. 20, 2001 |  |  |  | Mar. 20, 2001 | 
|Number of options allocated                                      |  |              | 200,000       |  |              |  | 123,400      |              |  |  | 127,386       |  |  |          | 180,000       |  |  |  | 34,415        | 
|Number of holders per tranche at the allocation                  |  |              | 89            |  |              |  | 50           |              |  |  | 100           |  |  |          | 144           |  |  |  | 144           | 
|Total number of shares available for subscription/purchase(4)    |  |              | 166,613       |  |              |  | 96,300       |              |  |  | 106,202       |  |  |          | 143,000       |  |  |  | 34,415        | 
|Vesting date for exercise of options                             |  |              | Jun. 7, 1999  |  |              |  | Jun. 7, 2000 |              |  |  | Dec. 15, 2001 |  |  |          | Mar. 21, 2003 |  |  |  | Mar. 21, 2003 | 
|Expiration Date                                                  |  |              | Jun. 6, 2007  |  |              |  | Jun. 6, 2008 |              |  |  | Dec. 14, 2009 |  |  |          | Mar. 20, 2011 |  |  |  | Mar. 20, 2011 | 
|Subscription/purchase price per share(3)                         |  |              | 42.09        |  |              |  | 109.96      |              |  |  | 68.10        |  |  |          | 137.13       |  |  |  | 137.13       | 
|Number of shares subscribed/purchased at 12/31/04                |  |              | 138,759       |  |              |  | 8,500        |              |  |  | 36,912        |  |  |          | 0             |  |  |  | 0             | 
|Shares remaining available for subscription/purchase at 12/31/04 |  |              | 27,854        |  |              |  | 87,800       |              |  |  | 69,290        |  |  |          | 143,000       |  |  |  | 34,415        | 






|    |                                                                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Date of the Coflexip shareholders meeting which has
    authorized the Coflexip shares subscription/purchase option plan.                             
|   
|(2) | Date Coflexip Board of Directors which has allocated the option
    plans.                                                                             
|   
|(3) | New subscription/purchase price according to the shares exchange
    ratio determined for the merger of Coflexip into our company.                     
|   
|(4) | The number of shares available for subscription is less than the
    number of options allocated due to the departure of the employee
    holding them.

Company Savings Plan.


81



---



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Options by non-director wage earners.


|                      |  |                   |        |  |                |   |       | 
|--------------------- |  | ----------------- | ------ |  | -------------- | - | ----- | 
|                      |  | Number of Options |        |  |               
|Employee              |  | Exercised         |        |  | Exercise Price |  
|                      |  |                   |        |  |                |  
|Daniel Burlin         |  |                   | 14,000 |  |                |  | 95.94 | 
|Anne Decressac        |  |                   | 5,500  |  |                |  | 95.94 | 
|Jean Deseilligny      |  |                   | 5,000  |  |                |  | 95.94 | 
|Xavier Jacob          |  |                   | 4,000  |  |                |  | 95.94 | 
|Jean-François Hediard |  |                   | 3,000  |  |                |  | 95.94 | 
|Patrick Picard        |  |                   | 2,500  |  |                |  | 95.94 | 





| |          
| | ---------
| | Employees






Item 7.     Major Shareholders
and Related Party Transactions


Major Shareholders


statuts Statuts




|                  |  |                         |            |        |             |  |         |        |  |  |         | 
|----------------- |  | ----------------------- | ---------- | ------ | ----------- |  | ------- | ------ |  |  | ------- | 
|                  |  | As of February 28, 2005 |           
|                  |  |                         |           
|                  |  |                         |            | % of   |             |  | % of    |       
|                  |  |                         |            | Shares |             |  | Voting  |       
|Shareholder       |  | Shares                  |            |        | Outstanding |  |         | Rights | 
|                  |  |                         |            |        |             |  |         |        | 
|IFP               |  |                         | 772,053    |        |             |  | 3.20%   |        |  |  | 6.20%   | 
|Oppenheimer Funds |  |                         | 1,450,000  |        |             |  | 6.00%   |        |  |  | 5.80%   | 
|Employees         |  |                         | 538,745    |        |             |  | 2.20%   |        |  |  | 3.60%   | 
|Treasury shares   |  |                         | 340,242    |        |             |  | 1.40%   |        |  |  |        | 
|Other             |  |                         | 21,029,294 |        |             |  | 87.20%  |        |  |  | 84.40%  | 
|                  |  |                         |            |        |             |  |         |        | 
|Total             |  |                         | 24,130,334 |        |             |  | 100.00% |        |  |  | 100.00% | 
|                  |  |                         |            |        |             |  |         |        | 



| |                                 
| | --------------------------------
| | Shares Held in the United States





82



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Related Party Transactions












Item 8.     Financial
Information


Consolidated Statements and Other Financial Information




Dividend Policy






avoir fiscal avoir fiscal avoir fiscal avoir fiscal




 avoir fiscal,


83



---



##### Table of Contents



avoir fiscal


|                               |  |            |      |          |                 |  |      |           |              |  |                 |  |  |  |      |    
|------------------------------ |  | ---------- | ---- | -------- | --------------- |  | ---- | --------- | ------------ |  | --------------- |  |  |  | ---- | ---
|                               |  |            |      | Dividend |                 |  |      |           | Dividend per | 
|                               |  |            |      | per ADS  |                 |  |      |           | Share        | 
|                               |  | Dividend   |      |          | Including       |  |      | Dividend  |              |  | Including       | 
|Year to which Dividend Related |  | per ADS(1) |      |          | Avoir fiscal(1) |  |      | per Share |              |  | Avoir fiscal(2) | 
|                               |  |            |      |          |                 |  |      |           |              |  |                 | 
|                               |  | U.S.$      |      |          | U.S.$           |  |      |          |              |  |                | 
|2000                           |  |            |     |          |                 |  |     |           |              |  | 3.30            |  |  |  | 4.95 |    
|2001                           |  |            | 0.74 |          |                 |  | 1.10 |           |              |  | 3.30            |  |  |  | 4.95 |    
|2002                           |  |            | 0.90 |          |                 |  | 1.35 |           |              |  | 3.30            |  |  |  | 4.95 |    
|2003                           |  |            | 1.01 |          |                 |  | 1.51 |           |              |  | 3.30            |  |  |  | 4.95 |    
|2004                           |  |            | 1.02 |          |                 |  | 1.33 |           |              |  | 3.30            |  |  |  | 4.30 | (2)






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Based on the number of Technip shares existing at the end of
    each fiscal year, each American depository share represented
    one-fourth of an ordinary share. Pursuant to a share split that
    was approved by the extraordinary general meeting of our
    shareholders on April 29, 2005 and which was effected on
    May 13, 2005, each such ADS now represents one share. For
    the convenience of the reader, dividend per ADS and dividend per
    ADS including avoir fiscal paid in 2004 have been
    translated from the euro amount per share into dollars per ADS
    at the rate of U.S.$1.2349 per
    1.00, not
    necessarily the actual amount paid. Amounts paid in 2000 through
    2003 have been translated into U.S. dollars at the noon buying
    rate applicable on the dividend payment date. This does not mean
    that we actually converted these amounts into U.S. dollars at
    that rate and you should not assume that they could have been
    converted at that or any other rate. We have applied the
    avoir fiscal rate for individuals, i.e., 50%.
|   
|(2) | Pursuant to the French Finance Law for 2004, dividends paid by
    French companies from January 1, 2005 no longer carry any
    avoir fiscal. However, the portion of the dividend
    relating to tax year 2004 that was paid in December 2004 (i.e.
    the interim dividend of
    2.00 per
    share) still carried an avoir fiscal. We have applied the
    avoir fiscal rate for individuals, i.e., 50%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

statuts statuts


statuts


 


Legal Proceedings




Tribunal de
Commerce de Versailles


84



---



##### Table of Contents



Tribunal de Commerce
de Paris








 






Pending Investigation






85



---



##### Table of Contents





Significant Changes







Item 9.     The Offer and
Listing


Price History of Shares


tm






|                  |  |                 |       |  |               |  |       |      |  |  |       |  |  |  |       | 
|----------------- |  | --------------- | ----- |  | ------------- |  | ----- | ---- |  |  | ----- |  |  |  | ----- | 
|                  |  | Price per Share |       |  | Price per ADS | 
|                  |  | in (1)         |       |  | in U.S.$(2)   | 
|                  |  |                 |       |  |               | 
|Calendar Period   |  | High            |       |  | Low           |  |       | High |  |  | Low   | 
|                  |  |                 |       |  |               |  |       |      |  |  |       | 
|2000              |  |                 | 40.25 |  |               |  | 25.15 |      |  |  |      |  |  |  |      | 
|2001              |  |                 |       |  |               |  |       |      |  |  |       |  |  |  |       | 
|First Quarter     |  |                 | 41.10 |  |               |  | 33.25 |      |  |  |      |  |  |  |      | 
|Second Quarter    |  |                 | 46.25 |  |               |  | 37.88 |      |  |  |      |  |  |  |      | 
|Third Quarter     |  |                 | 41.25 |  |               |  | 27.75 |      |  |  |      |  |  |  |      | 
|Fourth Quarter(3) |  |                 | 37.50 |  |               |  | 30.98 |      |  |  | 33.60 |  |  |  | 28.40 | 
|2002              |  |                 |       |  |               |  |       |      |  |  |       |  |  |  |       | 
|First Quarter     |  |                 | 39.48 |  |               |  | 33.15 |      |  |  | 35.20 |  |  |  | 29.00 | 
|Second Quarter    |  |                 | 40.58 |  |               |  | 26.60 |      |  |  | 34.80 |  |  |  | 26.00 | 
|Third Quarter     |  |                 | 26.88 |  |               |  | 16.38 |      |  |  | 26.00 |  |  |  | 16.35 | 
|Fourth Quarter    |  |                 | 19.96 |  |               |  | 12.75 |      |  |  | 20.20 |  |  |  | 12.34 | 

86



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|                                              |  |                 |       |  |               |  |       |      |  |  |       |  |  |  |       | 
|--------------------------------------------- |  | --------------- | ----- |  | ------------- |  | ----- | ---- |  |  | ----- |  |  |  | ----- | 
|                                              |  | Price per Share |       |  | Price per ADS | 
|                                              |  | in (1)         |       |  | in U.S.$(2)   | 
|                                              |  |                 |       |  |               | 
|Calendar Period                               |  | High            |       |  | Low           |  |       | High |  |  | Low   | 
|                                              |  |                 |       |  |               |  |       |      |  |  |       | 
|2003                                          |  |                 |       |  |               |  |       |      |  |  |       |  |  |  |       | 
|First Quarter                                 |  |                 | 17.50 |  |               |  | 12.96 |      |  |  | 18.55 |  |  |  | 14.32 | 
|Second Quarter                                |  |                 | 20.88 |  |               |  | 16.06 |      |  |  | 24.92 |  |  |  | 17.35 | 
|Third Quarter                                 |  |                 | 22.39 |  |               |  | 18.38 |      |  |  | 25.60 |  |  |  | 21.10 | 
|Fourth Quarter                                |  |                 | 22.98 |  |               |  | 20.73 |      |  |  | 27.88 |  |  |  | 24.30 | 
|2004                                          |  |                 |       |  |               |  |       |      |  |  |       |  |  |  |       | 
|First Quarter                                 |  |                 | 28.95 |  |               |  | 20.38 |      |  |  | 36.07 |  |  |  | 26.36 | 
|Second Quarter                                |  |                 | 29.00 |  |               |  | 26.00 |      |  |  | 35.29 |  |  |  | 30.42 | 
|Third Quarter                                 |  |                 | 32.85 |  |               |  | 26.83 |      |  |  | 40.71 |  |  |  | 32.62 | 
|Fourth Quarter                                |  |                 | 34.25 |  |               |  | 29.38 |      |  |  | 46.69 |  |  |  | 38.25 | 
|2005                                          |  |                 |       |  |               |  |       |      |  |  |       |  |  |  |       | 
|First Quarter                                 |  |                 | 33.75 |  |               |  | 30.05 |      |  |  | 45.17 |  |  |  | 39.96 | 
|Second Quarter (through June 20, 2005)        |  |                 | 37.90 |  |               |  | 31.17 |      |  |  | 46.19 |  |  |  | 40.94 | 
|Monthly amounts                               |  |                 |       |  |               |  |       |      |  |  |       |  |  |  |       | 
|December 2004                                 |  |                 | 34.25 |  |               |  | 30.85 |      |  |  | 46.69 |  |  |  | 41.50 | 
|January 2005                                  |  |                 | 33.42 |  |               |  | 31.23 |      |  |  | 45.00 |  |  |  | 41.74 | 
|February 2005                                 |  |                 | 33.53 |  |               |  | 30.50 |      |  |  | 44.52 |  |  |  | 39.96 | 
|March 2005                                    |  |                 | 33.75 |  |               |  | 31.25 |      |  |  | 45.17 |  |  |  | 40.40 | 
|April 2005                                    |  |                 | 33.50 |  |               |  | 31.17 |      |  |  | 43.24 |  |  |  | 40.94 | 
|May 2005 (through May 13, 2005)               |  |                 | 33.45 |  |               |  | 32.35 |      |  |  | 43.23 |  |  |  | 41.50 | 
|May 2005 (from May 16, 2005 until end of May) |  |                 | 34.65 |  |               |  | 32.65 |      |  |  | 43.59 |  |  |  | 41.59 | 
|June 2005 (through June 20, 2005)             |  |                 | 37.90 |  |               |  | 35.71 |      |  |  | 46.19 |  |  |  | 44.04 | 




Source: Bloomberg




|    |                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | On May 13, 2005, pursuant to a share split, the number of
    outstanding Technip shares was multiplied by four.                                                               
|   
|(2) | Up until May 13, 2004 (included), each American Depositary
    Share represented one quarter of an ordinary share. After that
    date, each ADS represents one ordinary share.
|   
|(3) | Technip shares began trading on the New York Stock Exchange on
    October 19, 2001.                                                                                           




Plan of Distribution




Nature of Trading Market


General




tm


87



---



##### Table of Contents





tm




| |                               
| | ------------------------------
| | Euronext Paris SA and Eurolist

Premier, Second Nouveau Marchés




| |   |                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------
| |  | Compartment A comprises the companies with market
    capitalizations above
    1 billion;                                            
|
| |  | Compartment B comprises the companies with market
    capitalizations from
    150 million
    and up to and including
    1 billion;






Continu Continu, Continu


Continu


Continu Autorité des Marchés Financiers




88



---



##### Table of Contents



Service à Règlement Différé   date
de liquidation






Other




89



---



##### Table of Contents






Item 10.     Additional
Information


Share Capital


  





Articles of Association (Statuts)


société anonyme, Livre II Code de Commerce les
sociétés commerciales et les groupements
dintérêt économique


Registre du
commerce et des sociétés


statuts




















90



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##### Table of Contents





statuts statuts statuts Greffe


Directors




| |                                
| | -------------------------------
| | Directors and Senior Management

société
anonyme, conseil dadministration,


Directeur Général statuts


statuts directeurs généraux
délégués,


statuts




| |                                                                                            
| | -------------------------------------------------------------------------------------------
| | Board of Directors Power to Vote on Agreements in
    which They are Materially Interested

et
seq directeurs généraux
délégués,


91



---



##### Table of Contents







| |                                               
| | ----------------------------------------------
| | Board of Directors Power to Vote Compensation

jetons de présence




| |                                                                          
| | -------------------------------------------------------------------------
| | Borrowing Powers Exercisable by the Members of the Board
    of Directors





| |                                                           
| | ----------------------------------------------------------
| | Age Requirements for Members of the Board of
    Directors

statuts


statuts




| |                                                           
| | ----------------------------------------------------------
| | Share Ownership Requirement for Director
    Qualification

statuts




92



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##### Table of Contents



Shareholders Meetings and Voting Rights




| |        
| | -------
| | General







| |   |                                                                           
| | - | --------------------------------------------------------------------------
| |  | electing, replacing and removing directors;                               
|
| |  | allocating fees to the board of directors;                                
|
| |  | appointing statutory auditors;                                            
|
| |  | approving the annual and consolidated accounts;                           
|
| |  | declaring dividends or authorizing dividends to be paid in
    shares; and
|
| |  | approving regulated agreements.                                           

statuts




| |   |                                                                                       
| | - | --------------------------------------------------------------------------------------
| |  | changing our articles of association (statuts), our name
    or our corporate purpose;
|
| |  | increasing or decreasing our share capital;                                           
|
| |  | creating a new class of equity securities;                                            
|
| |  | authorizing the issuance of any securities giving right to
    equity securities;     
|
| |  | establishing any other rights to equity securities (common or
    preferred shares);  
|
| |  | a statutory merger; and                                                               
|
| |  | the voluntary winding up of the Company prior to the end of its
    statutory term.   





| |                         
| | ------------------------
| | Annual Ordinary Meetings

Tribunal de Commerce




| |   |                                                                                    
| | - | -----------------------------------------------------------------------------------
| |  | any interested party in cases of urgency;                                          
|
| |  | one or several shareholders holding at least 5% of the
    Companys share capital;

93



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##### Table of Contents





| |   |                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | duly qualified associations of shareholders who hold their
    shares for at least two years in registered form and who
    together hold a specified percentage of the voting rights of the
    Company; or
|
| |  | the workers committee in cases of urgency.                                                                                                                                                                 



| |                                 
| | --------------------------------
| | Notice of Shareholders Meetings

avis de réunion bulletin des annonces légales obligatoires,


avis de convocation département






| |   |                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | one or several shareholders holding a specified percentage of
    shares;                                                                                                                     
|
| |  | duly qualified associations of shareholders who have held their
    shares in registered form for at least two years and who
    together hold a specified percentage of our voting rights; or
|
| |  | the workers committee.                                                                                                                                                                       







| |                                                    
| | ---------------------------------------------------
| | Attendance and Voting at Shareholders
    Meetings

statuts


intermédiaire
financier habilité statuts




94



---



##### Table of Contents







| |                     
| | --------------------
| | Double Voting Rights

statuts






| |                          
| | -------------------------
| | Proxies and Votes by Mail

statuts i.e.,






statuts






| |       
| | ------
| | Quorum



95



---



##### Table of Contents



i.e.,




| |   |                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | an ordinary general meeting; and                                                                                                                        
|
| |  | an extraordinary general meeting where an increase in our share
    capital is proposed through incorporation of reserves, profits
    or share premium.







| |         
| | --------
| | Majority











Changes in Our Share Capital




| |                               
| | ------------------------------
| | Increases in Our Share Capital





| |   |                                                     
| | - | ----------------------------------------------------
| |  | issuing common or preferred shares;                 
|
| |  | issuing a new class of equity securities; or        
|
| |  | increasing the nominal value of the existing shares.





| |   |                                
| | - | -------------------------------
| |  | for cash;                      
|
| |  | for assets contributed in kind;

96



---



##### Table of Contents





| |   |                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | by conversion or redemption of debt securities previously issued;                                                                                             
|
| |  | by exercise of any such rights, attached or not to other
    securities, giving access to common or preferred shares,
    including warrants or stock options;
|
| |  | by capitalization of profits, reserves or share premiums;                                                                                                     
|
| |  | subject to various conditions, in satisfaction of debt incurred
    by the Company; or                                                                        
|
| |  | any combination of the above.                                                                                                                                 











| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | increase our share capital by issuing ordinary shares or any
    other securities that give access to our share capital with
    preferential subscription rights, up to a maximum amount of
    37,500,000;                                                                                                                                                                                                                                                                                                   
|
| |  | increase our share capital by incorporation of reserves, profits
    or premiums or other amounts whose capitalization is allowed up
    to a maximum amount of
    75,000,000, it
    being specified that the cumulative amount of capital increases
    to be realized pursuant to this authorization and the
    authorization indicated in the first bullet point above cannot
    exceed a nominal amount of
    75,000,000;                                                                            
|
| |  | increase our share capital by issues for which the subscription
    is reserved to members of a Company Savings Plan up to a maximum
    nominal amount representing 3% of the Companys share
    capital at the date of implementation of this resolution, it
    being specified that the cumulative amount of capital increases
    to be realized pursuant to this authorization and the
    authorization indicated in the first bullet point above cannot
    exceed a nominal amount of
    37,500,000;
|
| |  | increase our share capital, up to the limit of 10% of our share
    capital, by issuing ordinary shares or any other securities that
    give access to our share capital, in order to compensate
    contributions in kind; and                                                                                                                                                                                                                                                                                
|
| |  | grant options to subscribe or purchase a total number of shares
    no greater than 3% of our share capital at the date of this
    authorization.                                                                                                                                                                                                                                                                                                                                                              



| |                               
| | ------------------------------
| | Decreases in Our Share Capital



97



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|                               |                                 |                           |            |            |               |  |      |       |  
|------------------------------ | ------------------------------- | ------------------------- | ---------- | ---------- | ------------- |  | ---- | ----- | -
|                               |                                 | Number of                 |            |            |              
|                               |                                 | Shares Issued             |            |            | Share Capital | 
|                               |                                 |                           |            |            |               | 
|                               |                                 | (in  millions            |           
|                               |                                 | except for shares issued) |           
|Shares as of December 31, 2000 |                                 |                           | 16,029,305 |            |               |  | 48.9 |      
|                               | 2001 increase(a)                |                           |            | 118,420    |               |  |      | 0.4   |  
|                               | Subscription to equity issue(d) |                           |            | 10,565,723 |               |  |      | 32.2  |  
|                               | Decrease in capital(c)          |                           |            |           |               |  |      |      |  
|Shares as of December 31, 2001 |                                 |                           | 26,713,448 |            |               |  | 81.5 |      
|                               | 2002 increase                   |                           |            | 48,565     |               |  |      | 0.1   |  
|                               | 2002 increase(a)                |                           |            | 23,250     |               |  |      | 0.1   |  
|                               | Subscription to equity issue(b) |                           |            | 98,614     |               |  |      | 0.3   |  
|                               | Decrease in capital(c)          |                           |            | (3,475,953 | )             |  |      | (10.6 | )
|Shares as of December 31, 2002 |                                 |                           | 23,408,004 |            |               |  | 71.4 |      
|                               | 2003 increase                   |                           |            | 330,327    |               |  |      | 1.0   |  
|                               | 2003 increase(a)                |                           |            |           |               |  |      |      |  
|                               | Subscription to equity issue(b) |                           |            |           |               |  |      |      |  
|                               | Decrease in capital             |                           |            |           |               |  |      |      |  
|Shares as of December 31, 2003 |                                 |                           | 23,738,331 |            |               |  | 72.4 |      
|                               | 2004 increase                   |                           |            | 40,543     |               |  |      | 0.12  |  
|                               | Subscription to equity issue    |                           |            | 331,780    |               |  |      | 1.01  |  
|                               | Decrease in capital             |                           |            |           |               |  |      |      |  
|Shares as of December 31, 2004 |                                 |                           | 24,110,654 |            |               |  | 73.5 |      






|    |                                                    
|--- | ---------------------------------------------------
|(a) | This increase results from exercised stock options.



|    |                                                                                        
|--- | ---------------------------------------------------------------------------------------
|(b) | This increase results from a new equity issuance reserved for
    employees of Technip.



|    |                                                        
|--- | -------------------------------------------------------
|(c) | Decrease in capital by cancellation of treasury shares.



|    |                                                                          
|--- | -------------------------------------------------------------------------
|(d) | This increase results from our exchange offers for Coflexip and
    ISIS.



| |                               
| | ------------------------------
| | Preemptive Subscription Rights

tm


délai de
priorité


98



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##### Table of Contents





| |                                                                    
| | -------------------------------------------------------------------
| | Financial Statements and Other Communications with
    Shareholders



loi de
sécurité financière




| |          
| | ---------
| | Dividends

statuts statuts




| |              
| | -------------
| | Legal Reserve

sociétés
anonymes 




| |                      
| | ---------------------
| | Approval of Dividends

 




| |                          
| | -------------------------
| | Distribution of Dividends

pro rata


99



---



##### Table of Contents



statuts




| |                  
| | -----------------
| | Timing of Payment





| |                                     
| | ------------------------------------
| | Form, Holding and Transfer of Shares



| |               
| | --------------
| | Form of Shares

statuts




| |                  
| | -----------------
| | Holding of Shares



statuts titres au porteur identifiables








| |                   
| | ------------------
| | Transfer of Shares

statuts




100



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##### Table of Contents





impôt sur les
opérations de bourse,    impôt sur les opérations de
bourse.




| |                   
| | ------------------
| | Liquidation Rights

pro rata




| |                                                        
| | -------------------------------------------------------
| | Requirements for Holdings Exceeding Certain Percentages





statuts de concert


1 3




101



---



##### Table of Contents










| |                           
| | --------------------------
| | Purchase of Our Own Shares

prestataire de services
dinvestissement note
dinformation






| |   |                                                                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the allocation/sale of shares to employees or executives of the
    Company or companies within the group according to the terms and
    conditions provided by laws and regulations (in particular, in
    regards to employee profit sharing, stock option plans and the
    free allocation or sale of existing shares);
|
| |  | the delivery of shares for payment or exchange in relation to
    external growth transactions;                                                                                                                                                                                                                            
|
| |  | creating a market for the shares, with the aim of insuring the
    liquidity of the share, by a financial services intermediary
    pursuant to a liquidity agreement in conformity with a
    professional code of ethics of the AFEI approved by the French
    AMF;                                                     
|
| |  | the cancellation of shares; and                                                                                                                                                                                                                                                                                            
|
| |  | the delivery of securities at the time of the exercise of the
    rights attached to transferable securities giving access to
    share capital.                                                                                                                                                                           





pro rata


i.e.,  


102



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| |                      
| | ---------------------
| | Trading in Our Shares





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the issuer may not, when executing trades under a share
    repurchase program, purchase shares at a price higher than the
    highest price of the last independent trade or the highest
    current independent bid on the trading venues where the purchase
    is carried out;                                                                                                                                                                                                                                                                                                                                            
|
| |  | when the issuer carries out the purchase of its own shares
    through derivative financial instruments, the exercise price of
    such derivative financial instruments shall not be above the
    higher of the price of the last independent trade or the highest
    current independent bid;                                                                                                                                                                                                                                                                                                                             
|
| |  | the issuer may not purchase more than 25% of the average daily
    volume of the shares in any one day on the regulated market on
    which the purchase is carried out. The average daily volume
    figure is to be based on the average daily volume traded in the
    month preceding the month of public disclosure of the program
    and fixed on that basis for the authorized period of the
    program. Where the program makes no reference to that volume,
    the average daily volume figure must be based on the average
    daily volume traded in the 20 trading days preceding the date of
    purchase; and
|
| |  | the issuer may not sell its own shares during the life of the
    program unless the issuer has in place a time-schedule share
    repurchase program, or the share purchase program is
    lead-managed by an investment firm or a credit institution which
    makes its trading decisions in relation to the issuers
    shares independently of, and without influence by, the issuer
    with regard to the timing of the purchases.                                                                                                                                                                                    





| |   |                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | selling of its own shares during the life of the program;                                                                                                    
|
| |  | trading where the company becomes aware of information that, if
    disclosed, would have a significant impact on the market price
    of its securities; and
|
| |  | trading during a 15-day period before the date on which the
    company makes its consolidated, annual and intermediary accounts
    public.                 





| |   |                                                                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the issuer has in place a time-schedule share repurchase
    program; or                                                                                                                                                                                                     
|
| |  | the share repurchase program is managed by an investment firm or
    a credit institution which makes its trading decisions in
    relation to the issuers shares independently of, and
    without influence by, the issuer with regard to the timing of
    the purchases.





103



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##### Table of Contents



DESCRIPTION OF OUR AMERICAN DEPOSITARY SHARES


American Depositary Receipts










Share Dividends and Other Distributions




| |                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------
| | How will I receive dividends and other distributions on
    the shares underlying my American depositary shares?





Cash. If exchange rates fluctuate
during a time when the depositary cannot convert a foreign
currency, you may lose some or all of the value of the
distribution.


Shares.


104



---



##### Table of Contents



Rights to receive additional shares.




| |   |                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------
| |  | sell such rights if practicable and distribute the net proceeds
    as cash; or                        
|
| |  | allow such rights to lapse, in which case American depositary
    receipt holders will receive nothing.



Other distributions.








There can be no assurances that the depositary will be able
to convert any currency at a specified exchange rate or sell any
property, rights, shares or other securities at a specified
price, nor that any of such transactions can be completed within
a specified time period.


Deposit, Withdrawal and Cancellation




| |                                                              
| | -------------------------------------------------------------
| | How does the depositary issue American depositary
    shares?







105



---



##### Table of Contents





| |                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------
| | How do American depositary receipt holders cancel an
    American depositary share and obtain deposited
    securities?







| |    |                                                                                                                                                                                                         
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. | temporary delays caused by closing our transfer books or those
    of the depositary or the deposit of shares in connection with
    voting at a shareholders meeting, or the payment of
    dividends;
|
| | 2. | the payment of fees, taxes and similar charges; or                                                                                                                                                      
|
| | 3. | compliance with any U.S. or foreign laws or governmental
    regulations relating to the American depositary receipts or to
    the withdrawal of deposited securities.                                 



Voting Rights




| |               
| | --------------
| | How do I vote?







| |                                                                                      
| | -------------------------------------------------------------------------------------
| | Can I qualify for double voting rights as a holder of
    American depositary shares?

statuts


106



---



##### Table of Contents



Record Dates






| |    |                                                                                                                                         
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------
| | 1. | to receive a dividend, distribution or rights; or                                                                                       
|
| | 2. | to give instructions for the exercise of voting rights at a
    meeting of holders of ordinary shares or other deposited
    securities,



Reports and Other Communications




| |                                    
| | -----------------------------------
| | Will I be able to view our reports?





Fees and Expenses




| |                                                             
| | ------------------------------------------------------------
| | What fees and expenses will I be responsible for
    paying?







| |    |                                                                                                                                                                                                                                                                                                                           
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. | to the extent permissible under the rules of the New York Stock
    Exchange, a fee of U.S.$0.02 or less per American depositary
    share (or portion thereof) for any cash distribution made
    pursuant to the deposit agreement;                                                                                     
|
| | 2. | to the extent not prohibited by the rules of any stock exchange
    or inter-dealer quotation system upon which the American
    depositary shares are traded, a fee of U.S.$1.50 per American
    depositary receipt or American depositary receipts for transfers
    of certificated American depositary receipts made;
|
| | 3. | stock transfer or other taxes and other governmental charges;                                                                                                                                                                                                                                                             
|
| | 4. | cable, telex and facsimile transmission and delivery charges
    incurred at your request;                                                                                                                                                                                                                                
|
| | 5. | transfer or registration fees for the registration of transfer
    of deposited securities on any applicable register in connection
    with the deposit or withdrawal of deposited securities; and                                                                                                                       
|
| | 6. | expenses of the depositary in connection with the conversion of
    foreign currency into U.S. dollars.                                                                                                                                                                                                                   



107



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##### Table of Contents



Payment of Taxes




Reclassifications, Recapitalizations and Mergers






| |    |                                                                                                   
| | -- | --------------------------------------------------------------------------------------------------
| | 1. | amend the form of American depositary receipt;                                                    
|
| | 2. | distribute additional or amended American depositary receipts;                                    
|
| | 3. | distribute cash, securities or other property it has received in
    connection with such actions;
|
| | 4. | sell any securities or property received and distribute the
    proceeds as cash; or              
|
| | 5. | none of the above.                                                                                



Amendment and Termination




| |                                          
| | -----------------------------------------
| | How may the deposit agreement be amended?







| |                                             
| | --------------------------------------------
| | How may the deposit agreement be terminated?



108



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##### Table of Contents





Limitations on Obligations and Liability to American
Depositary Receipt Holders


Limits
on our obligations and the obligations of the depositary; limits
on liability to American depositary receipt holders and holders
of American depositary shares






| |    |                                                                                                                                                                                                                                                                                                                                
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. | any law, regulation, or provisions governing deposited
    securities, act of God, war or other circumstance beyond its
    control shall prevent, delay or subject to any civil or criminal
    penalty any act which the deposit agreement or the American
    depositary receipts provide shall be done or performed by it; 
|
| | 2. | it exercises or fails to exercise discretion under the deposit
    agreement or the American depositary receipt;                                                                                                                                                                                                               
|
| | 3. | it performs its obligations without gross negligence or bad
    faith;                                                                                                                                                                                                                                                         
|
| | 4. | it takes any action or inaction by it in reliance upon the
    advice of or information from legal counsel, accountants, any
    person presenting shares for deposit, any registered holder of
    American depositary receipts, or any other person believed by it
    to be competent to give such advice or information; or
|
| | 5. | it relies upon any written notice, request, direction or other
    document believed by it to be genuine and to have been signed or
    presented by the proper party or parties.                                                                                                                                              







Disclosure of Interest in American Depositary Shares






| |    |                                                                                                                                                                      
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. | the capacity in which you and other holders and beneficial
    owners own or owned American depositary shares; and                                                   
|
| | 2. | the identity of any other persons then or previously interested
    in such American depositary shares and the nature of such
    interest and various other matters.



109



---



##### Table of Contents



Requirements for Depositary Actions






| |    |                                                                                                                                                       
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. | issue, register or transfer an American depositary receipt or
    American depositary receipts;                                                       
|
| | 2. | effect a split-up or combination of American depositary receipts;                                                                                     
|
| | 3. | deliver distributions on any such American depositary receipts;
    or                                                                                
|
| | 4. | permit the withdrawal of deposited securities (unless the
    deposit agreement provides otherwise), until the following
    conditions have been met:



| |   |                                                                                                                                                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the holder has paid all taxes, governmental charges, and fees
    and expenses as required in the deposit agreement;                                                                           
|
| |  | the holder has provided the depositary with any information it
    may deem necessary or proper, including, without limitation,
    proof of identity and the genuineness of any signature; and
|
| |  | the holder has complied with such regulations as the depositary
    may establish under the deposit agreement.                                                                                 



Books of Depositary




Pre-release of American Depositary Shares






| |    |                                                                                                                         
| | -- | ------------------------------------------------------------------------------------------------------------------------
| | 1. | the depositary has received collateral for the full market value
    of the pre-released American depositary shares; and
|
| | 2. | each recipient of pre-released American depositary shares agrees
    in writing that he or she:                         



| |   |                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------
| |  | owns the underlying shares;                                                                                     
|
| |  | assigns all rights in such shares to the depositary;                                                            
|
| |  | holds such shares for the account of the depositary; and                                                        
|
| |  | will deliver such shares to the custodian as soon as
    practicable, and promptly if the depositary so demands.



110



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##### Table of Contents





The Depositary




| |                       
| | ----------------------
| | Who is the depositary?



Material Contracts




| |                           
| | --------------------------
| | Syndicated Credit Facility








| |         
| | --------
| | Eurobond








| |                                               
| | ----------------------------------------------
| | Convertible/ Exchangeable Bonds
    (OCEANE)

    Premier Marché  


Exchange Controls




| |                                                    
| | ---------------------------------------------------
| | Ownership of ADSs or Shares by Non-French Residents



autorisation préalable,


111



---



##### Table of Contents



déclaration administrative,




| |                  
| | -----------------
| | Exchange Controls





| |      
| | -----
| | Other



Taxation




| |        
| | -------
| | General









| |                                          
| | -----------------------------------------
| | French Taxation of Non-Resident Investors

This summary may only be relevant to you if you are not a
resident of France and you do not hold your shares in connection
with a permanent establishment or a fixed base in France through
which you carry on a business or perform personal services.




| |                                       
| | --------------------------------------
| | Taxation on Sale or Disposal of Shares





| |   |                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | you are not a French resident for French tax purposes; and                                                                                                                                                     
|
| |  | you have held not more than 25% of our dividend rights, known as
    droits aux bénéfices sociaux, at any time
    during the preceding five years, either directly or indirectly,
    alone or with relatives.





 


112



---



##### Table of Contents







| |                      
| | ---------------------
| | Taxation of Dividends

avoir
fiscal


avoir fiscal avoir fiscal


 


avoir fiscal avoir fiscal avoir fiscal


i.e., avoir fiscal




avoir fiscal


avoir fiscal, avoir fiscal, précompte avoir fiscal


Territoires dOutre-Mer avoir fiscal avoir fiscal


|             |  |             |  |             |  |                         
|------------ |  | ----------- |  | ----------- |  | ------------------------
|Australia    |  | India       |  | Mexico      |  | The Netherlands         
|Austria      |  | Israel      |  | Namibia     |  | Togo                    
|Belgium      |  | Italy       |  | New Zealand |  | Turkey                  
|Bolivia      |  | Ivory Coast |  | Niger       |  | Ukraine                 
|Brazil       |  | Japan       |  | Norway      |  | United Kingdom          
|Burkina Faso |  | Latvia      |  | Pakistan    |  | United States           
|Canada       |  | Lithuania   |  | Senegal     |  | Venezuela               
|Estonia      |  | Luxembourg  |  | Singapore   |  | Territoires dOutre-    
|Finland      |  | Malaysia    |  | South Korea |  | Merand Other:           
|Gabon        |  | Mali        |  | Spain       |  | Mayotte                 
|Ghana        |  | Malta       |  | Sweden      |  | New Caledonia           
|Iceland      |  | Mauritius   |  | Switzerland |  | Saint-Pierre et Miquelon

113



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##### Table of Contents



Dividends paid in 2004. avoir fiscal,


avoir
fiscal


précompte précompte


Dividends to be paid from 2005 onwards. avoir
fiscal




avoir fiscal




| |                    
| | -------------------
| | Estate and Gift Tax





| |           
| | ----------
| | Wealth Tax

impôt de solidarité sur la fortune




| |   |                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | you are not a French resident for the purpose of French
    taxation; and                                                                                      
|
| |  | you own less than 10% of our capital stock, either directly or
    indirectly, provided your shares do not enable you to exercise
    influence on our company.



Taxation of U.S. Investors




114



---



##### Table of Contents







| |    |                                                                                                                     
| | -- | --------------------------------------------------------------------------------------------------------------------
| | 1. | you own (directly, indirectly or by attribution) less than 10%
    of our outstanding share capital or voting stock;
|
| | 2. | you are any one of the following:                                                                                   



| |     |                                                                                                                                                                                                                                             
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | an individual who is a citizen or resident of the United States
    for U.S. federal income tax purposes;                                                                                                                                   
|
| | (b) | a corporation (or other entity taxable as a corporation for U.S.
    federal income tax purposes) created or organized in or under
    the laws of the United States or any state thereof including the
    District of Columbia;           
|
| | (c) | an estate the income of which is subject to U.S. federal income
    taxation regardless of its source; or                                                                                                                                   
|
| | (d) | a trust, if a court within the United States is able to exercise
    primary supervision over the administration of the trust, and if
    one or more U.S. persons have the authority to control all
    substantial decisions of the trust;



| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 3. | you are entitled to the benefits of the Convention between the
    Government of the United States of America and the Government of
    the French Republic for the Avoidance of Double Taxation and the
    Prevention of Fiscal Evasion with Respect to Taxes on Income and
    Capital, signed August 31, 1994, and any protocols thereto
    (the U.S.-France income tax treaty) as a U.S.
    resident under the limitation on benefits article of
    that treaty;
|
| | 4. | you hold your Technip shares or American depositary shares as
    capital assets;                                                                                                                                                                                                                                                                                                                                                                                           
|
| | 5. | you are not also a resident of France; and                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| | 6. | your functional currency is the U.S. dollar.                                                                                                                                                                                                                                                                                                                                                                                                                                





Investors should consult their tax advisors
concerning the French, U.S. federal, state or local income tax
consequences of the ownership or disposition of our shares or
American depositary shares in light of their particular
situations as well as any consequences arising under the laws of
any other taxing jurisdiction.


115



---



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| |                      
| | ---------------------
| | Taxation of Dividends



Dividends paid in 2004. avoir fiscal avoir fiscal


avoir fiscal avoir fiscal avoir fiscal


précompte précompte


avoir fiscal, avoir
fiscal


avoir fiscal i.e.,




avoir fiscal précompte


avoir fiscal


116



---



##### Table of Contents



Dividends to be paid from 2005 onwards.














117



---



##### Table of Contents









précompte précompte précompte




| |                          
| | -------------------------
| | Taxation of Capital Gains







118



---



##### Table of Contents





| |                                          
| | -----------------------------------------
| | Passive Foreign Investment Company Status





| |                             
| | ----------------------------
| | French Estate and Gift Taxes





| |   |                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | you are domiciled in France at the time of making the gift, or
    at the time of your death; or                                                                                                                              
|
| |  | you used your Technip shares or American depositary shares in
    conducting a business through a permanent establishment or fixed
    base in France, or you held such shares or American depositary
    shares for that use.



| |                  
| | -----------------
| | French Wealth Tax





| |                                                               
| | --------------------------------------------------------------
| | United States Information Reporting and Backup
    Withholding



119



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##### Table of Contents



Dividends and Paying Agents




Statements by Experts




Documents on Display




Subsidiary Information







Item 11.     Quantitative and
Qualitative Disclosures About Market Risk


The information provided below contains certain
forward-looking statements that involve inherent risks,
uncertainties and other factors, principally with respect to
unanticipated changes in foreign exchange or interest rates and
fluctuations in the level of our exposure to market risks.
Actual results may differ from those set forth in any
forward-looking statements.




Cash Management






Debt Management


     







| |   |                                                                                              
| | - | ---------------------------------------------------------------------------------------------
| |  | commercial paper for
    150 million
    with an average maturity of less than three months;
|
| |  | short-term part of the long-term debts, which amounts to
    3.2 million;                   
|
| |  | bank overdrafts and others for
    16.5 million;
    and                                    
|
| |  | accrued interests on the convertible bonds for
    24.7 million.                            

120



---



##### Table of Contents









  


 




  





Fair Value of On Balance-Sheet Financial Instruments






Currency Risk






121



---



##### Table of Contents









As of December 31, 2004


|                                       |        |                                      |       |       |      |  |            |      |  |  |      |   |  |      |   |   |       |  |   |       |  |  |       |       |  |  |       |       |  
|-------------------------------------- | ------ | ------------------------------------ | ----- | ----- | ---- |  | ---------- | ---- |  |  | ---- | - |  | ---- | - | - | ----- |  | - | ----- |  |  | ----- | ----- |  |  | ----- | ----- | -
|                                       |        | Maturing in year ending December 31, |       |       |      |  |           
|                                       |        |                                      |       |       |      |  | Fair value |     
|Foreign Exchange Contracts             |        | 2005                                 |       |       | 2006 |  |            | 2007 |  |  | 2008 |   |  | 2009 |   |   | Total |  |   | Total | 
|                                       |        |                                      |       |       |      |  |            |      |  |  |      |   |  |      |   |   |       |  |   |       | 
|                                       |        | (in  millions)                      |      
|Sell currency, buy national currencies |        |                                      |       |       |      |  |            |      |  |  |      |   |  |      |   |   |       |  |   |       |  |  |       |       |  |  |       |      
|                                       | U.S.$  |                                      |       | 608.5 |      |  |            | 57.7 |  |  |      |  |  |      |   |  |       |  |   |      |  |  |       | 666.2 |  |  |       | 75.8  |  
|                                       | GBP    |                                      |       | 18.4  |      |  |            | 6.2  |  |  |      |  |  |      |   |  |       |  |   |      |  |  |       | 24.6  |  |  |       | 0.6   |  
|                                       | AED    |                                      |       | 2.2   |      |  |            |     |  |  |      |  |  |      |   |  |       |  |   |      |  |  |       | 2.2   |  |  |       | 0.0   |  
|                                       | Others |                                      |       | 16.3  |      |  |            | 0.9  |  |  |      |  |  |      |   |  |       |  |   |      |  |  |       | 17.2  |  |  |       | 0.5   |  
|                                       |        |                                      |       |       |      |  |            |      |  |  |      |   |  |      |   |   |       |  |   |       | 
|Total                                  |        |                                      | 645.4 |       |      |  | 64.8       |      |  |  |     |   |  |      |  |   |       |  |  |       |  |  | 710.2 |       |  |  | 76.9  |      
|                                       |        |                                      |       |       |      |  |            |      |  |  |      |   |  |      |   |   |       |  |   |       | 
|Buy currency, sell national currencies |        |                                      |       |       |      |  |            |      |  |  |      |   |  |      |   |   |       |  |   |       |  |  |       |       |  |  |       |      
|                                       | U.S.$  |                                      |       | 159.9 |      |  |            | 0.1  |  |  |      |  |  |      |   |  |       |  |   |      |  |  |       | 160.0 |  |  |       | (19.6 | )
|                                       | JPY    |                                      |       | 1.5   |      |  |            |     |  |  |      |  |  |      |   |  |       |  |   |      |  |  |       | 1.5   |  |  |       | 0.0   |  
|                                       | GBP    |                                      |       | 37.0  |      |  |            | 11.2 |  |  |      |  |  |      |   |  |       |  |   |      |  |  |       | 48.2  |  |  |       | (0.8  | )
|                                       | Others |                                      |       | 23.5  |      |  |            | 0.7  |  |  |      |  |  |      |   |  |       |  |   |      |  |  |       | 24.2  |  |  |       | (0.4  | )
|                                       |        |                                      |       |       |      |  |            |      |  |  |      |   |  |      |   |   |       |  |   |       | 
|Total                                  |        |                                      | 221.9 |       |      |  | 12.0       |      |  |  |     |   |  |      |  |   |       |  |  |       |  |  | 233.9 |       |  |  | (20.8 | )    
|                                       |        |                                      |       |       |      |  |            |      |  |  |      |   |  |      |   |   |       |  |   |       | 
|Sell/buy foreign currencies            |        |                                      | 252.6 |       |      |  | 85.6       |      |  |  | 4.8  |   |  |      |  |   |       |  |  |       |  |  | 343.0 |       |  |  | 26.1  |      
|                                       |        |                                      |       |       |      |  |            |      |  |  |      |   |  |      |   |   |       |  |   |       | 
|Total                                  |        |                                      | 252.6 |       |      |  | 85.6       |      |  |  | 4.8  |   |  |      |  |   |       |  |  |       |  |  | 343.0 |       |  |  | 26.1  |      
|                                       |        |                                      |       |       |      |  |            |      |  |  |      |   |  |      |   |   |       |  |   |       | 

As of December 31, 2003


|                                       |        |                                      |         |         |      |  |       |       |            |  |      |      |  |      |   |   |         |  |   |       |  |  |       |   |  |  |         |         |  |  |       |       |  
|-------------------------------------- | ------ | ------------------------------------ | ------- | ------- | ---- |  | ----- | ----- | ---------- |  | ---- | ---- |  | ---- | - | - | ------- |  | - | ----- |  |  | ----- | - |  |  | ------- | ------- |  |  | ----- | ----- | -
|                                       |        | Maturing in year ending December 31, |         |         |      |  |       |       |           
|                                       |        |                                      |         |         |      |  |       |       | Fair value | 
|Foreign Exchange Contracts             |        | 2004                                 |         |         | 2005 |  |       | 2006  |            |  | 2007 |      |  | 2008 |   |   | 5 years |  |   | Total |  |  | Total |  
|                                       |        |                                      |         |         |      |  |       |       |            |  |      |      |  |      |   |   |         |  |   |       |  |  |       |  
|                                       |        | (in  millions)                      |        
|Sell currency, buy national Currencies |        |                                      |         |         |      |  |       |       |            |  |      |      |  |      |   |   |         |  |   |       |  |  |       |   |  |  |         |         |  |  |       |      
|                                       | U.S.$  |                                      |         | 1,138.4 |      |  |       | 173.1 |            |  |      | 27.8 |  |      |   |  |         |  |   |      |  |  |       |  |  |  |         | 1,339.3 |  |  |       | 196.1 |  
|                                       | GBP    |                                      |         | 25.2    |      |  |       | 0.2   |            |  |      |     |  |      |   |  |         |  |   |      |  |  |       |  |  |  |         | 25.4    |  |  |       | 0.1   |  
|                                       | AED    |                                      |         | 18.8    |      |  |       |      |            |  |      |     |  |      |   |  |         |  |   |      |  |  |       |  |  |  |         | 18.8    |  |  |       | 1.6   |  
|                                       | Others |                                      |         | 20.8    |      |  |       |      |            |  |      |     |  |      |   |  |         |  |   |      |  |  |       |  |  |  |         | 20.8    |  |  |       | 0.3   |  
|                                       |        |                                      |         |         |      |  |       |       |            |  |      |      |  |      |   |   |         |  |   |       |  |  |       |  
|Total                                  |        |                                      | 1,203.2 |         |      |  | 173.3 |       |            |  | 27.8 |      |  |      |  |   |         |  |  |       |  |  |      |   |  |  | 1,404.3 |         |  |  | 198.1 |      
|                                       |        |                                      |         |         |      |  |       |       |            |  |      |      |  |      |   |   |         |  |   |       |  |  |       |  
|Buy currency, sell national currencies |        |                                      |         |         |      |  |       |       |            |  |      |      |  |      |   |   |         |  |   |       |  |  |       |   |  |  |         |         |  |  |       |      
|                                       | U.S.$  |                                      |         | 327.3   |      |  |       | 49.0  |            |  |      |     |  |      |   |  |         |  |   |      |  |  |       |  |  |  |         | 376.3   |  |  |       | (68.4 | )
|                                       | JPY    |                                      |         | 11.9    |      |  |       | 0     |            |  |      |     |  |      |   |  |         |  |   |      |  |  |       |  |  |  |         | 11.9    |  |  |       | (1.4  | )
|                                       | GBP    |                                      |         | 97.3    |      |  |       | 9.3   |            |  |      |     |  |      |   |  |         |  |   |      |  |  |       |  |  |  |         | 106.6   |  |  |       | (0.1  | )
|                                       | Others |                                      |         | 4.7     |      |  |       | 4.9   |            |  |      |     |  |      |   |  |         |  |   |      |  |  |       |  |  |  |         | 9.6     |  |  |       | (0.1  | )
|                                       |        |                                      |         |         |      |  |       |       |            |  |      |      |  |      |   |   |         |  |   |       |  |  |       |  
|Total                                  |        |                                      | 441.2   |         |      |  | 63.2  |       |            |  |     |      |  |      |  |   |         |  |  |       |  |  |      |   |  |  | 504.4   |         |  |  | (70.0 | )    
|                                       |        |                                      |         |         |      |  |       |       |            |  |      |      |  |      |   |   |         |  |   |       |  |  |       |  
|Sell/buy foreign currencies            |        |                                      | 214.2   |         |      |  | 47.6  |       |            |  | 37.2 |      |  |      |  |   |         |  |  |       |  |  |      |   |  |  | 299.0   |         |  |  | 17.7  |      
|                                       |        |                                      |         |         |      |  |       |       |            |  |      |      |  |      |   |   |         |  |   |       |  |  |       |  
|Total                                  |        |                                      | 214.2   |         |      |  | 47.6  |       |            |  | 37.2 |      |  |      |  |   |         |  |  |       |  |  |      |   |  |  | 299.0   |         |  |  | 17.7  |      
|                                       |        |                                      |         |         |      |  |       |       |            |  |      |      |  |      |   |   |         |  |   |       |  |  |       |  

122



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##### Table of Contents



Interest Risk















Item 12.     Description of
Securities to be Registered




123



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##### Table of Contents






PART II





Item 13.     Defaults, Dividend
Arrearages and Delinquencies







Item 14.     Material
Modifications to the Rights of Security Holders and Use of
Proceeds







Item 15.     Controls and
Procedures









Item 16.     [Reserved]





Item 16A.     Audit Committee
Financial Expert







Item 16B.     Code of Ethics







Item 16C.     Principal
Accountant Fees and Services




124



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##### Table of Contents





|                      |  |                  |         |  |                        |  |       |                  |  |  |                |  |  |  |       | 
|--------------------- |  | ---------------- | ------- |  | ---------------------- |  | ----- | ---------------- |  |  | -------------- |  |  |  | ----- | 
|                      |  | 2004             |         |  |                        |  | 2003  |                  |  | 
|                      |  | Barbier Frinault |         |  | 2004                   |  |       | Barbier Frinault |  |  |               
|                      |  | & Autres         |         |  | PricewaterhouseCoopers |  |       | & Autres         |  |  | 2003           | 
|                      |  | (Ernst & Young)  |         |  | Audit                  |  |       | (Ernst & Young)  |  |  | Claude Charron | 
|                      |  |                  |         |  |                        |  |       |                  |  |  |                | 
|                      |  | (in  thousands) |        
|Audit Fees(1)         |  |                  | 3,637.0 |  |                        |  | 269.0 |                  |  |  | 3,581.0        |  |  |  | 120.0 | 
|Audit-Related Fees(2) |  |                  | 349.0   |  |                        |  | 16.0  |                  |  |  |               |  |  |  |      | 
|Tax Fees(3)           |  |                  | 947.0   |  |                        |  | 89.0  |                  |  |  | 1,411.0        |  |  |  |      | 
|All Other Fees(4)     |  |                  | 345.0   |  |                        |  | 34.0  |                  |  |  |               |  |  |  |      | 
|                      |  |                  |         |  |                        |  |       |                  |  |  |                | 
|Total                 |  |                  | 5,278.0 |  |                        |  | 408.0 |                  |  |  | 4,992.0        |  |  |  | 120.0 | 
|                      |  |                  |         |  |                        |  |       |                  |  |  |                | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Audit Fees consist of fees for the annual audit services
    engagement and other audit services, which are those services
    that only the external auditor can reasonably provide, and
    include the group audit; statutory audits; comfort letters and
    consents; attest services; and assistance with and review of
    documents filed with the AMF and the SEC or other regulatory
    bodies.                                                                  
|   
|(2) | Audit-Related Fees consist of fees for assurance and related
    services that are reasonably related to the performance of the
    audit or review of our financial statements or that are
    traditionally performed by the external auditor.                                                                                                                                                                                                                            
|   
|(3) | Tax Fees include fees for tax compliance services, including the
    preparation of original and amended tax returns and claims for
    refund; tax consultations, such as assistance and representation
    in connection with tax audits and appeals, tax advice related to
    mergers and acquisitions, transfer pricing, and requests for
    rulings or technical advice from taxing authorities; tax
    planning services; and expatriate tax planning and services.
|   
|(4) | All Other Fees include fees for training; risk management
    consulting engagements; and services related to the Groups
    environmental report.                                                                                                                                                                                                                                                                                                                         



| |                                                         
| | --------------------------------------------------------
| | Audit Committee Pre-approval Policies and
    Procedures







| |   |                                                                      
| | - | ---------------------------------------------------------------------
| |  | statutory audit and audit-related engagements up to
    1.5 million;
|
| |  | tax advising engagements up to
    1.5 million;                     
|
| |  | other services up to
    0.5 million;
    and                       
|
| |  | with a unit cap per engagement up to
    0.2 million.               





125



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Item 16D.     Exemptions from
the Listing Standards for Audit Committees







Item 16E.     Purchases of
Equity Securities by the Issuer and Affiliated Purchasers


|                         |  |                      |         |   |                   |                      |         |           |                    |  |                 |  |  |  |           |  
|------------------------ |  | -------------------- | ------- | - | ----------------- | -------------------- | ------- | --------- | ------------------ |  | --------------- |  |  |  | --------- | -
|                         |  |                      |         |   |                   | Total Number of      |         |           | Maximum Number     | 
|                         |  |                      |         |   |                   | Securities Purchased |         |           | of Securities that | 
|                         |  |                      |         |   |                   | as Part of Publicly  |         |           | may yet be         | 
|                         |  | Total Number of      |         |   | Average Price     |                      |         | Announced |                    |  | Purchased under | 
|Period                   |  | Securities Purchased |         |   | Paid per security |                      |         | Programs  |                    |  | the Programs    | 
|                         |  |                      |         |   |                   |                      |         |           |                    |  |                 | 
|2004-01-01 to 2004-01-31 |  |                      | 15,028  |   |                   |                      | 89.24  |           |                    |  | 15,028          |  |  |  | 2,309,980 |  
|2004-02-01 to 2004-02-28 |  |                      | 257,920 | * |                   |                      | 95.94  |           |                    |  | 0               |  |  |  | 2,309,980 | *
|2004-03-01 to 2004-03-31 |  |                      |        |   |                   |                      |        |           |                    |  |                |  |  |  |          |  
|2004-04-01 to 2004-04-30 |  |                      |        |   |                   |                      |        |           |                    |  |                |  |  |  |          |  
|2004-05-01 to 2004-05-31 |  |                      | 119,109 |   |                   |                      | 113.63 |           |                    |  | 119.109         |  |  |  | 2,254,724 |  
|2004-06-01 to 2004-06-30 |  |                      | 30,000  |   |                   |                      | 110.00 |           |                    |  | 30.000          |  |  |  | 2,224,724 |  
|2004-07-01 to 2004-07-31 |  |                      |        |   |                   |                      |        |           |                    |  |                |  |  |  |          |  
|2004-08-01 to 2004-08-31 |  |                      |        |   |                   |                      |        |           |                    |  |                |  |  |  |          |  
|2004-09-01 to 2004-09-30 |  |                      |        |   |                   |                      |        |           |                    |  |                |  |  |  |          |  
|2004-10-01 to 2004-10-31 |  |                      | 4,351   |   |                   |                      | 124.70 |           |                    |  | 4.351           |  |  |  | 2,220,373 |  
|2004-11-01 to 2004-11-30 |  |                      | 4,167   |   |                   |                      | 124.10 |           |                    |  | 4,167           |  |  |  | 2,216,206 |  
|2004-12-01 to 2004-12-31 |  |                      |        |   |                   |                      |        |           |                    |  |                |  |  |  |          |  






|  |                                                                                                                                                                                                                                                                                                                                                                            
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | The 257,920 shares were purchased in February 2004 pursuant to
    the exercise of a call entered into in December 2002, as a
    hedging for the 1999/2001 Purchase Option Plan (1st tranche).
    The shares were repurchased in accordance with the provisions of
    Article L.225-208 of the French Commercial Code and as a part of
    our share repurchase program.

126



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##### Table of Contents






PART III





Item 17.     Financial
Statements







Item 18.     Financial
Statements


TECHNIP


|                                                                                                                    |  |      |     | 
|------------------------------------------------------------------------------------------------------------------- |  | ---- | --- | 
|                                                                                                                    |  | Page |    
|                                                                                                                    |  |      |    
|Report of Independent Registered Public Accounting Firm                                                             |  |      | F-2 | 
|Consolidated Statements of Operations for the Years Ended
    December 31, 2004, 2003 and 2002                      |  |      | F-3 | 
|Consolidated Balance Sheets as of December 31, 2004, 2003
    and 2002                                              |  |      | F-4 | 
|Consolidated Statements of Cash Flows for the Years Ended
    December 31, 2004, 2003 and 2002                      |  |      | F-6 | 
|Consolidated Statements of Changes in Shareholders Equity
    for the Years Ended December 31, 2004, 2003 and 2002 |  |      | F-7 | 
|Notes to the Consolidated Financial Statements                                                                      |  |      | F-8 | 




Item 19. Exhibits




|     |                                                                                                                                                                                                 
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1.1  | Articles of Association (Statuts), as amended as
    of May 18, 2005, of Technip                                                                                                                
|    
|8.1  | Subsidiaries of Technip (see Note 29 to the Consolidated
    Financial Statements)                                                                                                              
|    
|12.1 | Certification of the Chief Executive Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002                                                                                      
|    
|12.2 | Certification of the Chief Financial Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002                                                                                      
|    
|13.1 | Certification of the Chief Executive Officer and the Chief
    Financial Officer pursuant to Section 18 U.S.C.
    Section 1350, as adopted by Section 906 of the
    Sarbanes-Oxley Act of 2002
|    
|14.1 | Consent of Barbier Frinault & Autres (Ernst &
    Young) as auditors of Technip                                                                                                                 

127



---










INDEX TO FINANCIAL STATEMENTS


|                                                                                                                        |  |     
|----------------------------------------------------------------------------------------------------------------------- |  | ----
|                                                                                                                        |  | Page
|                                                                                                                        |  |     
|TECHNIP                                                                                                                
|                                                                                                                       
|Report of Independent Registered Public
    Accounting Firm                                                             |  | F-2 
|Consolidated Statements of Operations for
    the Years Ended December 31, 2004, 2003 and 2002                          |  | F-3 
|Consolidated Balance Sheets as of
    December 31, 2004, 2003 and 2002                                                  |  | F-4 
|Consolidated Statements of Cash Flows for
    the Years Ended December 31, 2004, 2003 and 2002                          |  | F-6 
|Consolidated Statements of Changes in
    Shareholders Equity for the Years Ended December 31,
    2004, 2003 and 2002 |  | F-7 
|Notes to the Consolidated Financial
    Statements                                                                      |  | F-8 



F-1



---



##### Table of Contents



TECHNIP





REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM






















F-2



---



##### Table of Contents






TECHNIP


CONSOLIDATED STATEMENTS OF OPERATIONS


|                                                                                         |  |      |   |                                                           |        |  |            |     |  |      |            |   |  |     |            |   |  |  |            |  
|---------------------------------------------------------------------------------------- |  | ---- | - | --------------------------------------------------------- | ------ |  | ---------- | --- |  | ---- | ---------- | - |  | --- | ---------- | - |  |  | ---------- | -
|                                                                                         |  |      |   | For the years ended December 31,                          |       
|                                                                                         |  |      |   |                                                           |       
|                                                                                         |  |      |   | 2004                                                      |        |  |           
|                                                                                         |  |      |   |                                                           |        |  | 2003       |     |  | 2002 |           
|                                                                                         |  | Note |   |                                                           | U.S.$* |  |            | EUR |  |      | EUR        |   |  | EUR |           
|                                                                                         |  |      |   |                                                           |        |  |            |     |  |      |            |   |  |     |           
|                                                                                         |  |      |   | (Amounts in millions of euro, except as otherwise stated) |       
|Net sales                                                                                |  |      | 3 |                                                           |        |  | 6,348.6    |     |  |      | 5,141.0    |   |  |     | 4,711.1    |   |  |  | 4,452.3    |  
|Cost of sales                                                                            |  |      |   |                                                           |        |  | (5,523.0   | )   |  |      | (4,472.4   | ) |  |     | (3,990.6   | ) |  |  | (3,754.8   | )
|                                                                                         |  |      |   |                                                           |        |  |            |     |  |      |            |   |  |     |           
|GROSS MARGIN                                                                             |  |      |   |                                                           |        |  | 825.6      |     |  |      | 668.6      |   |  |     | 720.5      |   |  |  | 697.5      |  
|Research and development expenses                                                        |  |      |   |                                                           |        |  | (41.0      | )   |  |      | (33.2      | ) |  |     | (33.3      | ) |  |  | (37.4      | )
|Selling, general and administrative
    expenses                                         |  |      |   |                                                           |        |  | (321.9     | )   |  |      | (260.7     | ) |  |     | (341.7     | ) |  |  | (312.5     | )
|                                                                                         |  |      |   |                                                           |        |  |            |     |  |      |            |   |  |     |           
|OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION                                    |  |      |   |                                                           |        |  | 462.7      |     |  |      | 374.7      |   |  |     | 345.5      |   |  |  | 347.6      |  
|Depreciation and amortization other than goodwill                                        |  |      | 4 |                                                           |        |  | (143.5     | )   |  |      | (116.2     | ) |  |     | (117.9     | ) |  |  | (143.0     | )
|                                                                                         |  |      |   |                                                           |        |  |            |     |  |      |            |   |  |     |           
|OPERATING INCOME                                                                         |  |      |   |                                                           |        |  | 319.2      |     |  |      | 258.5      |   |  |     | 227.6      |   |  |  | 204.6      |  
|Financial result                                                                         |  |      | 6 |                                                           |        |  | (66.7      | )   |  |      | (54.0      | ) |  |     | (44.3      | ) |  |  | (66.9      | )
|Income of equity affiliates                                                              |  |      |   |                                                           |        |  | 1.5        |     |  |      | 1.2        |   |  |     | 1.1        |   |  |  |           |  
|Non-operating loss                                                                       |  |      | 7 |                                                           |        |  | (19.9      | )   |  |      | (16.1      | ) |  |     | (7.6       | ) |  |  | (6.9       | )
|                                                                                         |  |      |   |                                                           |        |  |            |     |  |      |            |   |  |     |           
|INCOME BEFORE INCOME TAX, GOODWILL AMORTIZATION AND MINORITY
    INTERESTS               |  |      |   |                                                           |        |  | 234.1      |     |  |      | 189.6      |   |  |     | 176.8      |   |  |  | 130.8      |  
|Income tax                                                                               |  |      | 8 |                                                           |        |  | (80.4      | )   |  |      | (65.2      | ) |  |     | (82.0      | ) |  |  | (46.3      | )
|Minority interests                                                                       |  |      |   |                                                           |        |  | (3.0       | )   |  |      | (2.4       | ) |  |     | (0.8       | ) |  |  | 3.9        |  
|                                                                                         |  |      |   |                                                           |        |  |            |     |  |      |            |   |  |     |           
|NET INCOME (LOSS) BEFORE GOODWILL AMORTIZATION                                           |  |      |   |                                                           |        |  | 150.7      |     |  |      | 122.0      |   |  |     | 94.0       |   |  |  | 88.4       |  
|                                                                                         |  |      |   |                                                           |        |  |            |     |  |      |            |   |  |     |           
|Goodwill amortization                                                                    |  |      |   |                                                           |        |  | (144.9     | )   |  |      | (117.3     | ) |  |     | (113.7     | ) |  |  | (117.8     | )
|                                                                                         |  |      |   |                                                           |        |  |            |     |  |      |            |   |  |     |           
|NET INCOME (LOSS)                                                                        |  |      |   |                                                           |        |  | 5.8        |     |  |      | 4.7        |   |  |     | (19.7      | ) |  |  | (29.4      | )
|                                                                                         |  |      |   |                                                           |        |  |            |     |  |      |            |   |  |     |           
|Number of shares considered for non-diluted earnings (loss) per
    share                |  |      |   |                                                           |        |  | 23,654,629 |     |  |      | 23,654,629 |   |  |     | 23,432,215 |   |  |  | 26,794,373 |  
|Non-diluted earnings (loss) per share                                                    |  |      |   |                                                           |        |  | 0.25       |     |  |      | 0.20       |   |  |     | (0.84      | ) |  |  | (1.10      | )
|Non-diluted earnings before non-operating income and goodwill
    amortization per share |  |      |   |                                                           |        |  | 7.21       |     |  |      | 5.84       |   |  |     | 4.34       |   |  |  | 3.56       |  
|Number of shares considered for diluted earnings per share
    computation               |  |      | 9 |                                                           |        |  | 28,886,225 |     |  |      | 28,886,225 |   |  |     | 29,302,440 |   |  |  | 28,385,816 |  
|Diluted earnings before non-operating income and goodwill
    amortization per share(1)  |  |      | 9 |                                                           |        |  | 6.50       |     |  |      | 5.26       |   |  |     | 3.98       |   |  |  | 3.91       |  
|Diluted earnings per share(1)                                                            |  |      | 9 |                                                           |        |  | 0.79       |     |  |      | 0.64       |   |  |     |           |   |  |  |           |  






|    |                                                                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Net income before redemption premium after tax and OCEANE
    financial costs after tax (see Note 9). In 2003 and
    2002, the diluted earnings per share after goodwill amortization
    were negative and are consequently not disclosed.
|   
|*   | For the convenience of the reader, the financial statements as
    of and for the year ended December 31, 2004 have been
    translated into U.S. dollars (U.S.$) at the rate of
     1.00 =
    U.S.$ 1.2349 on May 31, 2005.             



F-3



---



##### Table of Contents



TECHNIP





CONSOLIDATED BALANCE SHEETS


|                                          |  |      |    |                               |        |  |          |     |  |      |          |  |  |     |          |  |  |  |          | 
|----------------------------------------- |  | ---- | -- | ----------------------------- | ------ |  | -------- | --- |  | ---- | -------- |  |  | --- | -------- |  |  |  | -------- | 
|                                          |  |      |    | As of December 31,            |       
|                                          |  |      |    |                               |       
|                                          |  |      |    | 2004                          |        |  |         
|                                          |  |      |    |                               |        |  | 2003     |     |  | 2002 |         
|                                          |  | Note |    |                               | U.S.$* |  |          | EUR |  |      | EUR      |  |  | EUR |         
|                                          |  |      |    |                               |        |  |          |     |  |      |          |  |  |     |         
|                                          |  |      |    | (Amounts in millions of euro, |       
|                                          |  |      |    | except as otherwise stated)   |       
|ASSETS                                   
|Intangible assets, net                    |  |      | 11 |                               |        |  | 2,919.2  |     |  |      | 2,363.9  |  |  |     | 2,497.0  |  |  |  | 2,637.6  | 
|Property, plant and equipment, net        |  |      | 12 |                               |        |  | 882.8    |     |  |      | 714.9    |  |  |     | 738.5    |  |  |  | 861.1    | 
|Other investments and loans, net          |  |      | 13 |                               |        |  | 7.1      |     |  |      | 5.8      |  |  |     | 8.4      |  |  |  | 18.3     | 
|Equity affiliates                         |  |      | 14 |                               |        |  | 16.7     |     |  |      | 13.5     |  |  |     | 2.1      |  |  |  | 1.2      | 
|                                          |  |      |    |                               |        |  |          |     |  |      |          |  |  |     |         
|TOTAL NON-CURRENT ASSETS                  |  |      |    |                               |        |  | 3,825.8  |     |  |      | 3,098.1  |  |  |     | 3,246.0  |  |  |  | 3,518.2  | 
|Contracts-in-progress                     |  |      | 15 |                               |        |  | 8,142.2  |     |  |      | 6,593.4  |  |  |     | 6,368.2  |  |  |  | 4,896.2  | 
|Inventories and deferred bid costs, net   |  |      | 16 |                               |        |  | 121.3    |     |  |      | 98.2     |  |  |     | 73.6     |  |  |  | 80.8     | 
|Advances to suppliers                     |  |      |    |                               |        |  | 308.0    |     |  |      | 249.4    |  |  |     | 244.6    |  |  |  | 122.5    | 
|Accounts and notes receivable, net        |  |      | 17 |                               |        |  | 734.5    |     |  |      | 594.8    |  |  |     | 755.6    |  |  |  | 725.6    | 
|Other current assets, net                 |  |      | 18 |                               |        |  | 871.0    |     |  |      | 705.3    |  |  |     | 427.7    |  |  |  | 521.6    | 
|                                          |  |      |    |                               |        |  |          |     |  |      |          |  |  |     |         
|RECEIVABLES AND OTHER CURRENT ASSETS, NET |  |      |    |                               |        |  | 1,605.5  |     |  |      | 1,300.1  |  |  |     | 1,183.3  |  |  |  | 1,247.2  | 
|Marketable securities                     |  |      |    |                               |        |  | 913.1    |     |  |      | 739.4    |  |  |     | 110.0    |  |  |  | 99.1     | 
|Cash                                      |  |      |    |                               |        |  | 857.8    |     |  |      | 694.6    |  |  |     | 782.4    |  |  |  | 642.0    | 
|                                          |  |      |    |                               |        |  |          |     |  |      |          |  |  |     |         
|CASH AND CASH EQUIVALENTS                 |  |      | 19 |                               |        |  | 1,770.9  |     |  |      | 1,434.0  |  |  |     | 892.4    |  |  |  | 741.1    | 
|                                          |  |      |    |                               |        |  |          |     |  |      |          |  |  |     |         
|TOTAL CURRENT ASSETS                      |  |      |    |                               |        |  | 11,947.8 |     |  |      | 9,675.1  |  |  |     | 8,762.1  |  |  |  | 7,087.8  | 
|                                          |  |      |    |                               |        |  |          |     |  |      |          |  |  |     |         
|TOTAL ASSETS                              |  |      |    |                               |        |  | 15,773.6 |     |  |      | 12,773.2 |  |  |     | 12,008.1 |  |  |  | 10,606.0 | 
|                                          |  |      |    |                               |        |  |          |     |  |      |          |  |  |     |         






|  |                                                                                                                                                                                                                              
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | For the convenience of the reader, the financial statements as
    of and for the year ended December 31, 2004 have been
    translated into U.S. dollars (U.S.$) at the rate of
    1.00 =
    U.S.$1.2349 on May 31, 2005.



F-4



---



##### Table of Contents



TECHNIP


CONSOLIDATED BALANCE SHEETS (continued)


|                                                 |  |      |    |                               |        |  |          |     |  |      |          |   |  |     |          |   |  |  |          |  
|------------------------------------------------ |  | ---- | -- | ----------------------------- | ------ |  | -------- | --- |  | ---- | -------- | - |  | --- | -------- | - |  |  | -------- | -
|                                                 |  |      |    | As of December 31,            |       
|                                                 |  |      |    |                               |       
|                                                 |  |      |    | 2004                          |        |  |         
|                                                 |  |      |    |                               |        |  | 2003     |     |  | 2002 |         
|                                                 |  | Note |    |                               | U.S.$* |  |          | EUR |  |      | EUR      |   |  | EUR |         
|                                                 |  |      |    |                               |        |  |          |     |  |      |          |   |  |     |         
|                                                 |  |      |    | (Amounts in millions of euro, |       
|                                                 |  |      |    | except as otherwise stated)   |       
|LIABILITIES AND SHAREHOLDERS EQUITY             |  |      |    |                               |        |  |          |     |  |      |          |   |  |     |          |   |  |  |          |  
|Common stock:
    3.05 nominal
    value,       |  |      |    |                               |        |  | 90.8     |     |  |      | 73.5     |   |  |     | 72.4     |   |  |  | 71.4     |  
|24,110,654 shares as of December 31, 2004,       |  |      |    |                               |        |  |          |     |  |      |          |   |  |     |          |   |  |  |          |  
|23,738,331 shares as of December 31, 2003,       |  |      |    |                               |        |  |          |     |  |      |          |   |  |     |          |   |  |  |          |  
|23,408,004 shares as of December 31, 2002        |  |      |    |                               |        |  |          |     |  |      |          |   |  |     |          |   |  |  |          |  
|Paid-in-surplus                                  |  |      |    |                               |        |  | 1,575.2  |     |  |      | 1,275.6  |   |  |     | 1,250.4  |   |  |  | 1,250.5  |  
|Retained earnings                                |  |      |    |                               |        |  | 608.3    |     |  |      | 492.6    |   |  |     | 646.5    |   |  |  | 721.8    |  
|Cumulative translation adjustment                |  |      |    |                               |        |  | (30.9    | )   |  |      | (25.0    | ) |  |     | (1.9     | ) |  |  | 12.0     |  
|Treasury shares and shares held by subsidiary(1) |  |      |    |                               |        |  | (40.0    | )   |  |      | (32.4    | ) |  |     | (9.7     | ) |  |  |         |  
|Net income (loss)                                |  |      |    |                               |        |  | 5.8      |     |  |      | 4.7      |   |  |     | (19.7    | ) |  |  | (29.4    | )
|                                                 |  |      |    |                               |        |  |          |     |  |      |          |   |  |     |         
|SHAREHOLDERS EQUITY                             |  |      | 20 |                               |        |  | 2,209.2  |     |  |      | 1,789.0  |   |  |     | 1,938.0  |   |  |  | 2,026.3  |  
|MINORITY INTERESTS                               |  |      |    |                               |        |  | 12.8     |     |  |      | 10.4     |   |  |     | 9.2      |   |  |  | 16.3     |  
|Retirement indemnities                           |  |      |    |                               |        |  | 87.4     |     |  |      | 70.8     |   |  |     | 89.3     |   |  |  | 86.3     |  
|Accrued liabilities                              |  |      | 21 |                               |        |  | 311.1    |     |  |      | 251.9    |   |  |     | 234.8    |   |  |  | 242.5    |  
|Convertible bonds redemption premium             |  |      | 23 |                               |        |  | 92.2     |     |  |      | 74.7     |   |  |     | 84.5     |   |  |  | 90.4     |  
|Long-term debt                                   |  |      |    |                               |        |  | 1,689.0  |     |  |      | 1,367.7  |   |  |     | 903.2    |   |  |  | 950.1    |  
|Short-term debt                                  |  |      |    |                               |        |  | 240.1    |     |  |      | 194.4    |   |  |     | 226.3    |   |  |  | 297.0    |  
|                                                 |  |      |    |                               |        |  |          |     |  |      |          |   |  |     |         
|Total Financial debt                             |  |      | 22 |                               |        |  | 1,929.1  |     |  |      | 1,562.1  |   |  |     | 1,129.5  |   |  |  | 1,247.1  |  
|Progress payments on contracts                   |  |      | 15 |                               |        |  | 9,081.0  |     |  |      | 7,353.6  |   |  |     | 7,047.8  |   |  |  | 5,420.2  |  
|Accounts and notes payable                       |  |      |    |                               |        |  | 1,052.8  |     |  |      | 852.5    |   |  |     | 783.1    |   |  |  | 720.8    |  
|Other creditors                                  |  |      | 24 |                               |        |  | 998.0    |     |  |      | 808.2    |   |  |     | 691.9    |   |  |  | 756.1    |  
|                                                 |  |      |    |                               |        |  |          |     |  |      |          |   |  |     |         
|TOTAL LIABILITIES                                |  |      |    |                               |        |  | 13,551.6 |     |  |      | 10,973.8 |   |  |     | 10,060.9 |   |  |  | 8,563.4  |  
|                                                 |  |      |    |                               |        |  |          |     |  |      |          |   |  |     |         
|TOTAL LIABILITIES & SHAREHOLDERS EQUITY         |  |      |    |                               |        |  | 15,773.6 |     |  |      | 12,773.2 |   |  |     | 12,008.1 |   |  |  | 10,606.0 |  
|                                                 |  |      |    |                               |        |  |          |     |  |      |          |   |  |     |         






|    |                                                                                                                                        
|--- | ---------------------------------------------------------------------------------------------------------------------------------------
|(1) | As of December 31, 2004 and 2003, 340,242 and 140,953
    shares held by subsidiaries have been deducted from
    shareholders equity.



| |                                                                                                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | In 2002, Technip cancelled all the shares held by the
    Company except 49,499 shares intended to cover the stock option
    plans recorded in marketable securities.



|  |                                                                                                                                                                                                                              
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | For the convenience of the reader, the financial statements as
    of and for the year ended December 31, 2004 have been
    translated into U.S. dollars (U.S.$) at the rate of
    1.00 =
    U.S.$1.2349 on May 31, 2005.



F-5



---



##### Table of Contents



TECHNIP





CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                                          |                   |                                  |         |        |      |  |         |        |   |  |          |       |   |  |          |       |  
|--------------------------------------------------------------------------------------------------------- | ----------------- | -------------------------------- | ------- | ------ | ---- |  | ------- | ------ | - |  | -------- | ----- | - |  | -------- | ----- | -
|                                                                                                          |                   | For the years ended December 31, |        
|                                                                                                          |                   |                                  |        
|                                                                                                          |                   | 2004                             |         |        |     
|                                                                                                          |                   |                                  |         |        | 2003 |  |         | 2002   |  
|                                                                                                          |                   | U.S.$*                           |         |        | EUR  |  |         | EUR    |   |  | EUR      |      
|                                                                                                          |                   |                                  |         |        |      |  |         |        |   |  |          |      
|                                                                                                          |                   | (Amounts in millions of euro,    |        
|                                                                                                          |                   | except as otherwise stated)      |        
|CASH FLOW FROM OPERATING ACTIVITIES:                                                                      |                   |                                  |         |        |      |  |         |        |   |  |          |       |   |  |          |      
|Net income (loss)                                                                                         |                   |                                  | 5.8     |        |      |  | 4.7     |        |   |  | (19.7    | )     |   |  | (29.4    | )    
|Minority interests                                                                                        |                   |                                  | 3.0     |        |      |  | 2.4     |        |   |  | 0.8      |       |   |  | (3.9     | )    
|                                                                                                          |                   |                                  |         |        |      |  |         |        |   |  |          |      
|Net income (loss) before minority interests                                                               |                   |                                  | 8.8     |        |      |  | 7.1     |        |   |  | (18.9    | )     |   |  | (33.3    | )    
|Adjustments to reconcile income before minority interests to
    net cash provided by operating activity: |                   |                                  |         |        |      |  |         |        |   |  |          |       |   |  |          |      
|Amortization of intangible assets and goodwill                                                            |                   |                                  | 163.7   |        |      |  | 132.7   |        |   |  | 128.6    |       |   |  | 133.6    |      
|Depreciation of property, plant and equipment                                                             |                   |                                  | 124.6   |        |      |  | 100.8   |        |   |  | 103.0    |       |   |  | 127.2    |      
|Amortization of OCEANE loans redemption premium                                                          |                   |                                  | 14.1    |        |      |  | 11.4    |        |   |  | 16.1     |       |   |  | 16.9     |      
|Income of equity affiliates, net of dividends                                                             |                   |                                  | (1.5    | )      |      |  | (1.2    | )      |   |  | (1.1     | )     |   |  |         |      
|Increase in non-current provisions, net                                                                   |                   |                                  | (23.6   | )      |      |  | (19.1   | )      |   |  | 3.0      |       |   |  | 6.2      |      
|Net gain on disposal of fixed assets and investments                                                      |                   |                                  | 11.4    |        |      |  | 9.2     |        |   |  | 0.3      |       |   |  | (10.7    | )    
|Increase (Decrease) in provisions for deferred tax                                                        |                   |                                  | 23.8    |        |      |  | 19.3    |        |   |  | (1.7     | )     |   |  |         |      
|Net changes in operating assets and liabilities:                                                          |                   |                                  |         |        |      |  |         |        |   |  |          |       |   |  |          |      
|Decrease (increase) in advances to suppliers                                                              |                   |                                  | (5.9    | )      |      |  | (4.8    | )      |   |  | (122.1   | )     |   |  | (24.6    | )    
|Decrease (increase) in contracts-in-progress                                                              |                   |                                  | (278.1  | )      |      |  | (225.2  | )      |   |  | (1,472.0 | )     |   |  | 1,400.0  |      
|Decrease (increase) in accounts and notes receivables                                                     |                   |                                  | 198.6   |        |      |  | 160.8   |        |   |  | (1.4     | )     |   |  | 90.3     |      
|Decrease (increase) in other current assets                                                               |                   |                                  | (387.3  | )      |      |  | (313.6  | )      |   |  | 101.1    |       |   |  | (129.1   | )    
|Increase (decrease) in accrued liabilities                                                                |                   |                                  | 21.9    |        |      |  | 17.7    |        |   |  | (7.7     | )     |   |  | (15.0    | )    
|Increase (decrease) in progress payments on contracts                                                     |                   |                                  | 377.6   |        |      |  | 305.8   |        |   |  | 1,627.6  |       |   |  | (1,290.4 | )    
|Increase (decrease) in accounts payables and other Creditors                                              |                   |                                  | 207.0   |        |      |  | 167.6   |        |   |  | (6.1     | )     |   |  | 161.7    |      
|                                                                                                          |                   |                                  |         |        |      |  |         |        |   |  |          |      
|Net cash provided by operating activities                                                                 |                   |                                  | 455.1   |        |      |  | 368.5   |        |   |  | 348.7    |       |   |  | 432.8    |      
|CASH FLOW FROM INVESTING ACTIVITIES:                                                                      |                   |                                  |         |        |      |  |         |        |   |  |          |       |   |  |          |      
|Capital expenditures (property, plant and equipment)                                                      |                   |                                  | (146.5  | )      |      |  | (118.6  | )      |   |  | (122.4   | )     |   |  | (124.3   | )    
|Capital expenditures (intangibles)                                                                        |                   |                                  | (6.4    | )      |      |  | (5.2    | )      |   |  | (0.3     | )     |   |  | (1.5     | )    
|Proceeds from disposal of intangible assets                                                               |                   |                                  | 0.0     |        |      |  | 0.0     |        |   |  | 0.3      |       |   |  | 0.2      |      
|Proceeds from disposal of fixed assets                                                                    |                   |                                  | 17.3    |        |      |  | 14.0    |        |   |  | 104.8    |       |   |  | 111.8    |      
|Acquisition of investments                                                                                |                   |                                  | 0.0     |        |      |  | 0.0     |        |   |  | (3.3     | )     |   |  | (0.4     | )    
|Proceeds from disposal of investments                                                                     |                   |                                  | 17.4    |        |      |  | 14.1    |        |   |  | 1.6      |       |   |  | 31.2     |      
|Aker Deepwater Division purchase price reduction                                                          |                   |                                  | 0.0     |        |      |  | 0.0     |        |   |  | 38.2     |       |   |  |         |      
|Increase (decrease) from changes in scope of consolidation**                                              |                   |                                  | (33.8   | )      |      |  | (27.4   | )      |   |  | (7.9     | )     |   |  | 1.7      |      
|                                                                                                          |                   |                                  |         |        |      |  |         |        |   |  |          |      
|Net cash provided by (used in) investing activities                                                       |                   |                                  | (152.0  | )      |      |  | (123.1  | )      |   |  | 11.0     |       |   |  | 18.7     |      
|CASH FLOW FROM FINANCING ACTIVITIES:                                                                      |                   |                                  |         |        |      |  |         |        |   |  |          |       |   |  |          |      
|Increase in short-term debt                                                                               |                   |                                  | 30.7    |        |      |  | 24.9    |        |   |  | 5.8      |       |   |  | 91.0     |      
|Decrease in short-term debt                                                                               |                   |                                  | (70.1   | )      |      |  | (56.8   | )      |   |  | (71.0    | )     |   |  | (252.0   | )    
|Increase in long-term debt                                                                                |                   |                                  | 800.5   |        |      |  | 648.2   |        |   |  | 76.5     |       |   |  | 794.7    |      
|Decrease in long-term debt                                                                                |                   |                                  | (228.8  | )      |      |  | (185.3  | )      |   |  | (97.3    | )     |   |  | (952.0   | )    
|Increase in loans                                                                                         |                   |                                  |        |        |      |  |        |        |   |  |         |       |   |  |         |      
|Decrease in loans                                                                                         |                   |                                  |        |        |      |  |        |        |   |  |         |       |   |  |         |      
|Repurchase of own shares                                                                                  |                   |                                  | (28.0   | )      |      |  | (22.7   | )      |   |  | (6.5     | )     |   |  | (45.4    | )    
|Increase (decrease) in minority interests                                                                 |                   |                                  |        |        |      |  |        |        |   |  |         |       |   |  | (5.1     | )    
|Parent companys equity:                                                                                  |                   |                                  |         |        |      |  |         |        |   |  |          |       |   |  |          |      
|                                                                                                          | Capital increases |                                  |         | 32.5   |      |  |         | 26.3   |   |  |          |      |   |  |          | 12.3  |  
|                                                                                                          | Dividends paid    |                                  |         | (160.3 | )    |  |         | (129.8 | ) |  |          | (77.3 | ) |  |          | (79.7 | )
|                                                                                                          |                   |                                  |         |        |      |  |         |        |   |  |          |      
|Net cash provided by (used in) financing activities                                                       |                   |                                  | 376.5   |        |      |  | 304.8   |        |   |  | (169.8   | )     |   |  | (436.2   | )    
|Net effect of exchange rate Changes                                                                       |                   |                                  | (10.6   | )      |      |  | (8.6    | )      |   |  | (38.6    | )     |   |  | (37.6    | )    
|                                                                                                          |                   |                                  |         |        |      |  |         |        |   |  |          |      
|Net increase (decrease) in cash and cash equivalents                                                      |                   |                                  | 669.0   |        |      |  | 541.6   |        |   |  | 151.3    |       |   |  | (22.3    | )    
|Cash and cash equivalent at the beginning of the year                                                     |                   |                                  | 1,101.9 |        |      |  | 892.4   |        |   |  | 741.1    |       |   |  | 763.4    |      
|Cash and cash equivalent at the end of the year                                                           |                   |                                  | 1,770.9 |        |      |  | 1,434.0 |        |   |  | 892.4    |       |   |  | 741.1    |      
|                                                                                                          |                   |                                  |         |        |      |  |         |        |   |  |          |      
|Non cash increase in shareholders equity related to the
    Coflexip and ISIS acquisitions               |                   |                                  |         |        |      |  |         |        |   |  | 49.5     |       |   |  |         |      
|Cash paid for income taxes                                                                                |                   |                                  | (65.1   | )      |      |  | (52.7   | )      |   |  | (70.6    | )     |   |  | (63.8    | )    
|Interest paid                                                                                             |                   |                                  | 23.8    |        |      |  | 19.3    |        |   |  | (24.3    | )     |   |  | (30.1    | )    






|   |                                                                                                                                                                                                                              
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|*  | For the convenience of the reader, the financial statements as
    of and for the year ended December 31, 2004 have been
    translated into U.S. dollars (U.S.$) at the rate of
    1.00 =
    U.S.$1.2349 on May 31, 2005.
|  
|** | This represents the cash balances of companies acquired (or
    disposed of) measured as of the date of the acquisition or
    disposal.                                                                                     



F-6



---



##### Table of Contents



TECHNIP





CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS
EQUITY


|                                                          |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             |        |   |               |   |       |            |  |   |               |     |  |   |        |   |  |   |         |  
|--------------------------------------------------------- |  | ---------------------------------------------------------- | ---------- | - | ------ | - | ----- | ------- |  | - | ---------- | - |  | ----------- | ------ | - | ------------- | - | ----- | ---------- |  | - | ------------- | --- |  | - | ------ | - |  | - | ------- | -
|                                                          |  | Stock Issued                                               |            |   |        |   |       |         |  |   |            |   |  |             |       
|                                                          |  |                                                            |            |   |        |   |       |         |  |   | Treasury   |   |  |             |        |  
|                                                          |  | Number of                                                  |            |   |        |   |       |         |  |   | Cumulative |   |  | Shares/     |        |   |               |   |      
|                                                          |  | Shares                                                     |            |   | Common |   |       | Paid-in |  |   | Retained   |   |  | Translation |        |   | Shares Held   |   |       | Net Income |  |   | Shareholders |    
|                                                          |  | issued                                                     |            |   | Stock  |   |       | Surplus |  |   | Earnings   |   |  | Adjustment  |        |   | by Subsidiary |   |       | (Loss)     |  |   | Equity        |    
|                                                          |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             |        |   |               |   |       |            |  |   |               |    
|                                                          |  | (Amounts in millions of euros, except as otherwise stated) |           
|As of December 31, 2001                                   |  |                                                            | 26,713,448 |   |        |   | 81.5  |         |  |   | 1,605.5    |   |  |             | 661.5  |   |               |   | 13.1  |            |  |   | (255.5        | )   |  |   | 108.1  |   |  |   | 2,214.2 |  
|                                                          |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             |        |   |               |   |       |            |  |   |               |    
|Capital Increase                                          |  |                                                            | 170,509    |   |        |   | 0.5   |         |  |   | 11.8       |   |  |             |        |   |               |   |       |            |  |   |               |     |  |   |        |   |  |   | 12.3    |  
|Capital Decrease                                          |  |                                                            | (3,475,953 | ) |        |   | (10.6 | )       |  |   | (366.8     | ) |  |             |        |   |               |   |       |            |  |   |               |     |  |   |        |   |  |   | (377.4  | )
|Appropriation of Net Income 2001                          |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             | 28.4   |   |               |   |       |            |  |   |               |     |  |   | (108.1 | ) |  |   | (79.7   | )
|Foreign Currency Translation                              |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             |        |   |               |   | (1.1  | )          |  |   |               |     |  |   |        |   |  |   | (1.1    | )
|Net Income (Loss) 2002                                    |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             |        |   |               |   |       |            |  |   |               |     |  |   | (29.4  | ) |  |   | (29.4   | )
|Treasury Shares/Shares held by Subsidiary                 |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             |        |   |               |   |       |            |  |   | 255.5         | (1) |  |   |        |   |  |   | 255.5   |  
|Others (including Isis merger)                            |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             | 31.9   |   |               |   |       |            |  |   |               |     |  |   |        |   |  |   | 31.9    |  
|                                                          |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             |        |   |               |   |       |            |  |   |               |    
|As of December 31, 2002                                   |  |                                                            | 23,408,004 |   |        |   | 71.4  |         |  |   | 1,250.5    |   |  |             | 721.8  |   |               |   | 12.0  |            |  |   | 0.0           |     |  |   | (29.4  | ) |  |   | 2,026.3 |  
|                                                          |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             |        |   |               |   |       |            |  |   |               |    
|Capital Increase                                          |  |                                                            | 330,327    |   |        |   | 1.0   |         |  |   | (0.1       | ) |  |             | 47.6   |   |               |   |       |            |  |   |               |     |  |   |        |   |  |   | 48.5    |  
|Appropriation of Net Income 2002                          |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             | (106.7 | ) |               |   |       |            |  |   |               |     |  |   | 29.4   |   |  |   | (77.3   | )
|Foreign Currency Translation                              |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             |        |   |               |   | (13.9 | )          |  |   |               |     |  |   |        |   |  |   | (13.9   | )
|Net Income 2003                                           |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             |        |   |               |   |       |            |  |   |               |     |  |   | (19.7  | ) |  |   | (19.7   | )
|Treasury Shares/Shares held by Subsidiary                 |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             |        |   |               |   |       |            |  |   | (9.7          | )   |  |   |        |   |  |   | (9.7    | )
|Others                                                    |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             | (16.2  | ) |               |   |       |            |  |   |               |     |  |   |        |   |  |   | (16.2   | )
|                                                          |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             |        |   |               |   |       |            |  |   |               |    
|As of December 31, 2003                                   |  |                                                            | 23,738,331 |   |        |   | 72.4  |         |  |   | 1,250.4    |   |  |             | 646.5  |   |               |   | (1.9  | )          |  |   | (9.7          | )   |  |   | (19.7  | ) |  |   | 1,938.0 |  
|                                                          |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             |        |   |               |   |       |            |  |   |               |    
|Capital Increase                                          |  |                                                            | 372,323    |   |        |   | 1.1   |         |  |   | 25.2       |   |  |             |        |   |               |   |       |            |  |   |               |     |  |   |        |   |  |   | 26.3    |  
|Appropriation of Net Income 2003 and prepaid dividends(2) |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             | (149.5 | ) |               |   |       |            |  |   |               |     |  |   | 19.7   |   |  |   | (129.8  | )
|Foreign Currency Translation                              |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             |        |   |               |   | (23.1 | )          |  |   |               |     |  |   |        |   |  |   | (23.1   | )
|Net Income 2004                                           |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             |        |   |               |   |       |            |  |   |               |     |  |   | 4.7    |   |  |   | 4.7     |  
|Treasury Shares/Shares held by Subsidiary                 |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             |        |   |               |   |       |            |  |   | (22.7         | )   |  |   |        |   |  |   | (22.7   | )
|Others                                                    |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             | (4.4   | ) |               |   |       |            |  |   |               |     |  |   |        |   |  |   | (4.4    | )
|                                                          |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             |        |   |               |   |       |            |  |   |               |    
|As of December 31, 2004                                   |  |                                                            | 24,110,654 |   |        |   | 73.5  |         |  |   | 1,275.6    |   |  |             | 492.6  |   |               |   | (25.0 | )          |  |   | (32.4         | )   |  |   | 4.7    |   |  |   | 1,789.0 |  
|                                                          |  |                                                            |            |   |        |   |       |         |  |   |            |   |  |             |        |   |               |   |       |            |  |   |               |    
|As of December 31, 2004*                                  |  |                                                            | 24,110,654 |   |        | $ | 90.8  |         |  | $ | 1,575.2    |   |  | $           | 608.3  |   |               | $ | (30.9 | )          |  | $ | (40.0         | )   |  | $ | 5.8    |   |  | $ | 2,209.2 |  






|    |                                                                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In 2002, Technip wrote off the shares held by the Company and
    its subsidiary Isis except 49,499 shares reserved for the stock
    option plans recorded in marketable securities.                                        
|   
|(2) | Includes the payment of 2003 dividends, of the precept (special
    equalization tax on dividends) for
    82.3 million
    and of the 2004 interim dividend for
    47.5 millions.                                        
|   
|*   | For the convenience of the reader, the financial statements as
    of and for the year ended December 31, 2004 have been
    translated into U.S. dollars (U.S.$) at the rate of
    1.00 =
    U.S.$1.2349 on May 31, 2005.



F-7



---



##### Table of Contents



TECHNIP





NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


Introductory Note  Changes in Scope of
Consolidation and Business Description




| |                                      
| | -------------------------------------
| | (a) Changes in Scope of Consolidation

Note 2


Note 2






| |                         
| | ------------------------
| | (b) Operational Segments













| |   |                             
| | - | ----------------------------
| |  | Europe, Russia-Central Asia,
|
| |  | Africa, Middle East,        
|
| |  | Asia-Pacific,               
|
| |  | Americas.                   



| |                                           
| | ------------------------------------------
| | (c) Nature of Business and Operating Cycle





| |   |                                                                                                                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Lump-sum or cost-to-costs engineering service contracts
    performed over a short period;                                                                                                                                                                                                          
|
| |  | Engineering, manufacturing, installation and commissioning
    service contracts lasting approximately 12 months; and                                                                                                                                                                               
|
| |  | Turnkey projects related to complex industrial facilities with
    engineering, procurement, construction and start-up, in respect
    of industrial performances and a contractual schedule. The
    average duration of these contracts is three years but can vary
    depending on the contract.



| |                                  
| | ---------------------------------
| | (d) Income Statement Presentation





F-8



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 1  Summary of Significant Accounting
Principles




| |                                                              
| | -------------------------------------------------------------
| | (a) Basis of Presentation and Change in Accounting
    Method





| |                          
| | -------------------------
| | (b) Consolidation Methods









| |                     
| | --------------------
| | (c) Use of Estimates





| |                        
| | -----------------------
| | (d) Revenue Recognition





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | For long-term contracts, which include construction services
    (lump-sum turnkey contracts), the percentage-of-completion is
    based on technical milestones defined for the main components of
    the contracts, that the Company considers to stand for the best
    measure of progress of these contracts. Milestones related to
    engineering and construction parts of the contracts are valued
    on the basis of the hours spent while milestones related to
    deliveries of procurement parts of the contract are valued on
    the basis of the cost of the related purchase.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | For these contracts, the completion of early phases, such as
    engineering design, confirmation of significant orders, and
    assurance that field conditions are satisfactory, is necessary
    to firmly assess identified risks and to estimate with
    sufficient precision the total future costs as well as the
    expected timetable. As a result, the related positive gross
    margin is recognized when the gross margin at completion can be
    estimated more precisely, on a contract-by-contract basis. The
    gross margin corresponding to the completion ratio reached at
    that time is immediately recognized. The remaining gross margin
    is recognized using the percentage-of-completion method for the
    remaining duration of the contract.

F-9



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |   |                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | For long-term contracts, which do not include construction
    services, revenue and gross margin are recognized based on the
    relation that costs incurred to date bear to estimated total
    costs.













| |                                  
| | ---------------------------------
| | (e) Foreign Currency Transactions

Note 1 r






| |                                      
| | -------------------------------------
| | (f) Translation to Reporting Currency









| |                      
| | ---------------------
| | (g) Intangible Assets

fonds de
commerce






F-10



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |                                  
| | ---------------------------------
| | (h) Property, Plant and Equipment



|                              |  |  |                | 
|----------------------------- |  |  | -------------- | 
|Buildings                     |  |  | 10 to 50 years | 
|Vessels                       |  |  | 10 to 25 years | 
|Machinery and Equipment       |  |  | 6 to 10 years  | 
|Office fixtures and Furniture |  |  | 5 to 10 years  | 
|Vehicles                      |  |  | 3 to 7 years   | 
|EDP Equipment                 |  |  | 3 to 5 years   | 









| |                                
| | -------------------------------
| | (i) Other Investments and Loans





| |                       
| | ----------------------
| | (j) Deferred Bid Costs





| |                          
| | -------------------------
| | (k) Contracts-in-progress

Note 1(d),


Note 1(b)


F-11



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |   |                                                                                                                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Equipment and material purchases, costs of subcontracted
    services and miscellaneous services incurred in relation to the
    contracts;                                                                                                  
|
| |  | Man-hour costs directly assigned to the contract, valued using
    hourly rates, which include an overhead factor covering all
    operating expenses except for selling, research and development
    expenses and under-activity costs; and
|
| |  | The gross margin recognized under the percentage-of-completion
    method as described in Note 1(d).                                                                                                                                         



Note 1(d)








| |   |                                                                                                                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Contracts-in-progress (which at that time amounts to
    the total sales price of the contract) is reduced by accumulated
    progress payments received by the Company under this contract,
    the remaining balance being invoiced to the customer and
    recorded under the Receivables on Contracts line
    item (see Note 17); and
|
| |  | If necessary, accrued liabilities are recorded to cover pending
    contingencies and expenses and are shown under the
    Expenses to Complete Contracts line item in the
    balance sheet. These liabilities are considered as current for
    the purpose of the preparation of the statements of cash flows.                           



| |                
| | ---------------
| | (l) Inventories





| |                          
| | -------------------------
| | (m) Advances to Suppliers





| |                         
| | ------------------------
| | (n) Accounts Receivables





| |                              
| | -----------------------------
| | (o) Cash and Cash Equivalents





| |                                                       
| | ------------------------------------------------------
| | (p) Retirement Indemnities and Accrued
    Liabilities



F-12



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Foreseeable Losses on Contracts:


Contingencies Related to Contracts:


Territoriality Contingencies Related to Contracts:


Expenses to Complete Contracts:


Accrual for Retirement Indemnities




| |   |                                                                                           
| | - | ------------------------------------------------------------------------------------------
| |  | End-of-career indemnities, which are to be paid at retirement
    date,                   
|
| |  | Deferred wages indemnities, which are to be paid when employees
    leave the company, and
|
| |  | Retirement indemnities, which are to be paid as annuities.                                



Restructuring:




| |                      
| | ---------------------
| | (q) Deferred Taxation





| |                                                                
| | ---------------------------------------------------------------
| | (r) Foreign Currency Transactions and Financial
    Instruments









F-13



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












| |                                   
| | ----------------------------------
| | (s) Research and Development Costs





| |                     
| | --------------------
| | (t) Financial Result





| |                         
| | ------------------------
| | (u) Non-operating Income





| |                               
| | ------------------------------
| | (v) Diluted Earnings per Share





| |                                
| | -------------------------------
| | (w) Shares Held by Subsidiaries



Note 2  Changes in Scope of Consolidation:
Significant Acquisitions and Disposals




| |                                     
| | ------------------------------------
| | For the Year Ended December 31, 2004



 


 




F-14



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                                                                                                      |  |  |        |             |  |  |         |  
|----------------------------------------------------------------------------------------------------- |  |  | ------ | ----------- |  |  | ------- | -
|                                                                                                      |  |  |        | In Millions | 
|                                                                                                      |  |  |        | of Euro     | 
|                                                                                                      |  |  |        |             | 
|Creation of 5,504,436 Technip Shares
    (147.99 a share)                                            |  |  |        |             |  |  | 814.6   |  
|Cash paid for 5,000,000 Coflexip Shares
    (199.0 a share)                                          |  |  |        |             |  |  | 995.0   |  
|Net Purchase Costs                                                                                    |  |  |        |             |  |  | 28.7    |  
|                                                                                                      |  |  |        |             |  | 
|Purchase Price for 52.47% in Coflexip                                                                 |  |  |        |             |  |  | 1,838.3 |  
|Coflexip Net Equity as of September 30, 2001 (52.47%)                                                 |  |  |        |             |  |  | (421.4  | )
|                                                                                                      |  |  |        |             |  | 
|Step-up for 52.47% in Coflexip                                                                        |  |  |        |             |  |  | 1,416.9 |  
|Step-up for 16.63% in Coflexip via ISIS                                                               |  |  |        |             |  |  | 253.1   |  
|                                                                                                      |  |  |        |             |  | 
|Step-up for 69.1% in Coflexip                                                                         |  |  |        |             |  |  | 1,670.0 |  
|Release of net Goodwill recognized by Coflexip (Foreign Exchange
    Effect included)                 |  |  |        |             |  |  | 503.5   |  
|Allocation to Identified Assets :                                                                     |  |  |        |             |  |  |         |  
|Vessels                                                                                               |  |  | (106.4 | )           |  |  |         |  
|Buildings                                                                                             |  |  | (24.2  | )           |  |  |         |  
|Patents                                                                                               |  |  | (59.4  | )           |  |  | (125.5  | )
|Deferred Tax                                                                                          |  |  | 64.5   |             |  |  |         |  
|                                                                                                      |  |  |        |             |  | 
|Goodwill 2001 (gross)                                                                                 |  |  |        |             |  |  | 2,048.0 |  
|                                                                                                      |  |  |        |             |  | 
|Adjustment on Coflexip Shares from ISIS (after Merger)                                                |  |  |        |             |  |  | 5.5     |  
|Gain on Sales of CSO Assets                                                                           |  |  |        |             |  |  | (48.3   | )
|Depreciation of US Deferred Tax Assets                                                                |  |  |        |             |  |  | 13.8    |  
|Provisions for Transfers                                                                              |  |  |        |             |  |  | 32.1    |  
|Provisions and Miscellaneous Charges                                                                  |  |  |        |             |  |  | 48.0    |  
|                                                                                                      |  |  |        |             |  | 
|Goodwill 2002 (gross) after Adjustment                                                                |  |  |        |             |  |  | 2,099.1 |  
|                                                                                                      |  |  |        |             |  | 
|Aker Deepwater Division Price Reduction                                                               |  |  |        |             |  |  | (40.7   | )
|Capital Increase Following the Repurchase of Minority Interests
    for the Technip / Coflexip Merger |  |  |        |             |  |  | 49.5    |  
|Book Value of Minority Interests Repurchased                                                          |  |  |        |             |  |  | (14.3   | )
|Other                                                                                                 |  |  |        |             |  |  | (1.0    | )
|                                                                                                      |  |  |        |             |  | 
|Goodwill 2003 (gross) after Adjustment                                                                |  |  |        |             |  |  | 2,092.6 |  
|                                                                                                      |  |  |        |             |  | 
|Profit on Merger Adjustment                                                                           |  |  |        |             |  |  | (4.9    | )
|Goodwill 2004 (gross) after Adjustment                                                                |  |  |        |             |  |  | 2,087.7 |  
|                                                                                                      |  |  |        |             |  | 

F-15



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                                       |  |  |         |             |  |  |         |  
|------------------------------------------------------------------------------------------------------ |  |  | ------- | ----------- |  |  | ------- | -
|                                                                                                       |  |  |         | In Millions | 
|                                                                                                       |  |  |         | of Euro     | 
|                                                                                                       |  |  |         |             | 
|Goodwill on the Purchase of 29.4% of Coflexip Shares (April 2000)                                      |  |  |         |             |  |  | 447.5   |  
|Goodwill on the Purchase of 69.1% of Coflexip Shares (October
    2001) after
    Aker Price Reduction |  |  | 2,087.7 |             |  |  | 2,057.4 |  
|Goodwill on the Technip / Coflexip Merger (July 2003)                                                  |  |  |         |             |  |  | 30.3    |  
|Total Amortization at the End of December 2004                                                         |  |  |         |             |  |  | (375.7  | )
|                                                                                                       |  |  |         |             |  | 
|Goodwill after Adjustments (net)                                                                       |  |  |         |             |  |  | 2,159.5 |  





| |   |                                                                                                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------
| |  | FLOATERS and floating facilities activity relates
    mainly to the Aker Maritimes Deepwater division acquired
    by Coflexip in 2001,     
|
| |  | SURF activity (Subsea, Umbilicals, Risers and
    Flowlines) corresponds to the main activity of Coflexip before
    the acquisition of Aker.

|                                                 |  |                 
|------------------------------------------------ |  | ----------------
|Goodwill net, related to the Floaters activity |  | 307.4 million  
|Goodwill net, related to the SURF activity     |  | 1,852.1 million



For the Year Ended December 31, 2003


  







For the Year Ended December 31, 2002









F-16



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






Note 3  Business and Geographical Segment
Information




| |                                    
| | -----------------------------------
| | (a) Information by Business Segment





| |   |                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Offshore activity  integrated design, engineering,
    fabrication and construction services, including floaters,
    subsea flow lines, risers and umbilicals as well as project
    management and maintenance operations.
|
| |  | Onshore/ Downstream activity  design and
    implementation of production, refining and treatment units.                                                                                                                    
|
| |  | Industries activities  project management and
    engineering services to a diverse array of clients unrelated to
    the hydrocarbons industry.                                                                            



F-17



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                      |  |                     |         |          |            |  |         |            |  |  |           |   |  |       |       |  |  |  |          | 
|----------------------------------------------------- |  | ------------------- | ------- | -------- | ---------- |  | ------- | ---------- |  |  | --------- | - |  | ----- | ----- |  |  |  | -------- | 
|                                                      |  |                     |         | Onshore/ |            |  |         |            |  |  |          
|                                                      |  | Offshore            |         |          | Downstream |  |         | Industries |  |  | Corporate |   |  | Total |      
|                                                      |  |                     |         |          |            |  |         |            |  |  |           |   |  |       |      
|                                                      |  | In Millions of Euro |        
|2004                                                  |  |                     |         |          |            |  |         |            |  |  |           |   |  |       |       |  |  |  |          | 
|Net Sales                                             |  |                     | 2,487.2 |          |            |  | 2,385.1 |            |  |  | 268.7     |   |  |       |       |  |  |  | 5,141.0  | 
|Operating Income before Depreciation and Amortization |  |                     | 267.1   |          |            |  | 109.1   |            |  |  | (1.5      | ) |  |       |       |  |  |  | 374.7    | 
|Backlog as of December 31(*)                          |  |                     | 2,804.3 |          |            |  | 3,758.4 |            |  |  | 216.3     |   |  |       |       |  |  |  | 6,779.0  | 
|Capital Expenditures (Property, Plant and Equipment)  |  |                     | 101.1   |          |            |  | 16.1    |            |  |  | 1.4       |   |  |       |       |  |  |  | 118.6    | 
|Segment Assets                                        |  |                     | 6,386.7 |          |            |  | 5,237.7 |            |  |  | 543.1     |   |  |       | 605.7 |  |  |  | 12,773.2 | 
|Net Goodwill                                          |  |                     | 2,159.5 |          |            |  | 126.2   |            |  |  | 0.0       |   |  |       |       |  |  |  | 2,285.7  | 
|                                                     
|2003                                                  |  |                     |         |          |            |  |         |            |  |  |           |   |  |       |       |  |  |  |          | 
|Net Sales                                             |  |                     | 2,209.7 |          |            |  | 2,119.0 |            |  |  | 382.4     |   |  |       |       |  |  |  | 4,711.1  | 
|Operating Income before Depreciation and Amortization |  |                     | 242.7   |          |            |  | 100.4   |            |  |  | 2.4       |   |  |       |       |  |  |  | 345.5    | 
|Backlog as of December 31(*)                          |  |                     | 2,894.9 |          |            |  | 3,907.5 |            |  |  | 378.0     |   |  |       |       |  |  |  | 7,180.4  | 
|Capital Expenditures (Property, Plant and Equipment)  |  |                     | 102.0   |          |            |  | 16.4    |            |  |  | 4.0       |   |  |       |       |  |  |  | 122.4    | 
|Segment Assets                                        |  |                     | 5,625.0 |          |            |  | 5,417.0 |            |  |  | 706.0     |   |  |       | 260.1 |  |  |  | 12,008.1 | 
|Net Goodwill                                          |  |                     | 2,270.3 |          |            |  | 138.3   |            |  |  | 0.1       |   |  |       |       |  |  |  | 2,408.7  | 
|                                                     
|2002                                                  |  |                     |         |          |            |  |         |            |  |  |           |   |  |       |       |  |  |  |          | 
|Net Sales                                             |  |                     | 2,125.0 |          |            |  | 1938.6  |            |  |  | 388.7     |   |  |       |       |  |  |  | 4452.3   | 
|Operating Income before Depreciation and Amortization |  |                     | 250.1   |          |            |  | 85.3    |            |  |  | 12.2      |   |  |       |       |  |  |  | 347.6    | 
|Backlog as of December 31(*)                          |  |                     | 1760.7  |          |            |  | 3625.7  |            |  |  | 389.7     |   |  |       |       |  |  |  | 5776.1   | 
|Capital Expenditures (Property, Plant and Equipment)  |  |                     | 106.0   |          |            |  | 16.0    |            |  |  | 2.3       |   |  |       |       |  |  |  | 124.3    | 
|Segment Assets                                        |  |                     | 5,314.0 |          |            |  | 3,991.0 |            |  |  | 956.0     |   |  |       | 345.0 |  |  |  | 10,606.0 | 
|Net Goodwill                                          |  |                     | 2,379.5 |          |            |  | 149.0   |            |  |  | 0.3       |   |  |       |       |  |  |  | 2,528.8  | 






|    |                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------
|(*) | The backlog is defined as the remaining portion on ongoing
    contracts sales price to be recognized in the future.



|    |                                    
|--- | -----------------------------------
|(b) | Information by Geographical Segment





| |   |                               
| | - | ------------------------------
| |  | Europe, Russia  Central Asia;
|
| |  | Africa, Middle East;          
|
| |  | Asia-Pacific; and             
|
| |  | Americas.                     



F-18



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                      |  |                     |         |  |             |  |         |         |  |  |          |  |  |         |         |  |       |  |       |  |  |  |         | 
|----------------------------------------------------- |  | ------------------- | ------- |  | ----------- |  | ------- | ------- |  |  | -------- |  |  | ------- | ------- |  | ----- |  | ----- |  |  |  | ------- | 
|                                                      |  | Europe,             |         |  |             |  |         |         |  |  |          |  | 
|                                                      |  | Russia, &           |         |  |             |  |         |         |  |  |          |  | 
|                                                      |  | Central             |         |  | Africa &    |  |         | Asia    |  |  |          |  |  |         |        
|                                                      |  | Asia(*)             |         |  | Middle East |  |         | Pacific |  |  | Americas |  |  | Vessels |         |  | Total | 
|                                                      |  |                     |         |  |             |  |         |         |  |  |          |  |  |         |         |  |       | 
|                                                      |  | In Millions of Euro |        
|2004                                                  |  |                     |         |  |             |  |         |         |  |  |          |  |  |         |         |  |       |  |       |  |  |  |         | 
|Net Sales                                             |  |                     | 1,278.9 |  |             |  | 2,553.8 |         |  |  | 378.9    |  |  |         | 929.4   |  |       |  |      |  |  |  | 5,141.0 | 
|Operating Income before Depreciation and Amortization |  |                     | 135.1   |  |             |  | 138.0   |         |  |  | 47.6     |  |  |         | 54.0    |  |       |  |      |  |  |  | 374.7   | 
|Backlog as of December 31(**)                         |  |                     | 1,077.1 |  |             |  | 4,146.3 |         |  |  | 459.9    |  |  |         | 1,095.7 |  |       |  |      |  |  |  | 6,779.0 | 
|Property, Plant and Equipment, net                    |  |                     | 198.7   |  |             |  | 23.6    |         |  |  | 7.0      |  |  |         | 76.6    |  |       |  | 409.0 |  |  |  | 714.9   | 
|                                                     
|2003                                                  |  |                     |         |  |             |  |         |         |  |  |          |  |  |         |         |  |       |  |       |  |  |  |         | 
|Net Sales                                             |  |                     | 1,138.2 |  |             |  | 2,150.3 |         |  |  | 344.5    |  |  |         | 1,078.1 |  |       |  |      |  |  |  | 4,711.1 | 
|Operating Income before Depreciation and Amortization |  |                     | 118.9   |  |             |  | 144.3   |         |  |  | 23.2     |  |  |         | 59.1    |  |       |  |      |  |  |  | 345.5   | 
|Backlog as of December 31(**)                         |  |                     | 1,480.2 |  |             |  | 4,161.5 |         |  |  | 509.5    |  |  |         | 1,029.2 |  |       |  |      |  |  |  | 7,180.4 | 
|Property, Plant and Equipment, net                    |  |                     | 213.4   |  |             |  | 27.0    |         |  |  | 5.0      |  |  |         | 90.1    |  |       |  | 403.0 |  |  |  | 738.5   | 
|                                                     
|2002                                                  |  |                     |         |  |             |  |         |         |  |  |          |  |  |         |         |  |       |  |       |  |  |  |         | 
|Net Sales                                             |  |                     | 1,196.6 |  |             |  | 1,482.0 |         |  |  | 445.2    |  |  |         | 1,328.5 |  |       |  |      |  |  |  | 4,452.3 | 
|Operating Income before Depreciation and Amortization |  |                     | 148.4   |  |             |  | 102.9   |         |  |  | 22.1     |  |  |         | 74.2    |  |       |  |      |  |  |  | 347.6   | 
|Backlog as of December 31(**)                         |  |                     | 833.7   |  |             |  | 3,038.0 |         |  |  | 510.7    |  |  |         | 1,393.7 |  |       |  |      |  |  |  | 5,776.1 | 
|Property, Plant and Equipment, net                    |  |                     | 249.0   |  |             |  | 36.9    |         |  |  | 5.6      |  |  |         | 140.2   |  |       |  | 429.4 |  |  |  | 861.1   | 






|     |  |                                                                                                                                      
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------
|(*)  |  | of which net sales for France: 
     2004:
    159.0 million,
    
     2003:
    164.9 million,
    
     2002: 
    77.9 million
|    
|(**) |  | The backlog is defined as the remaining portion on ongoing
    contracts sales price to be recognized in the future.                 

(c) Major
Customers




F-19



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 4  Operating Income






|    |                                                  
|--- | -------------------------------------------------
|(a) | Amortization other than goodwill and Depreciation

|                                                        |  |                    |        |   |          |  |        |          |  |  |        |  
|------------------------------------------------------- |  | ------------------ | ------ | - | -------- |  | ------ | -------- |  |  | ------ | -
|                                                        |  | 12/31/04           |        |   | 12/31/03 |  |        | 12/31/02 | 
|                                                        |  |                    |        |   |          |  |        |          | 
|                                                        |  | In millions of EUR |       
|Amortization of Intangible Assets(a)                    |  |                    | (15.4  | ) |          |  | (14.9  | )        |  |  | (15.8  | )
|                                                        |  |                    |        |   |          |  |        |          | 
|Depreciation of Property, Plant and Equipment:          |  |                    |        |   |          |  |        |          |  |  |        |  
|Buildings                                               |  |                    | (8.5   | ) |          |  | (9.5   | )        |  |  | (21.3  | )
|Vessels                                                 |  |                    | (36.8  | ) |          |  | (35.0  | )        |  |  | (42.7  | )
|Machinery and Equipment                                 |  |                    | (34.8  | ) |          |  | (35.2  | )        |  |  | (37.8  | )
|Office Fixtures and Furniture                           |  |                    | (17.1  | ) |          |  | (20.9  | )        |  |  | (21.4  | )
|Other                                                   |  |                    | (3.6   | ) |          |  | (2.4   | )        |  |  | (4.0   | )
|                                                        |  |                    |        |   |          |  |        |          | 
|Total Depreciation of Property, Plant and Equipment     |  |                    | (100.8 | ) |          |  | (103.0 | )        |  |  | (127.2 | )
|                                                        |  |                    |        |   |          |  |        |          | 
|Total Depreciation and Amortization other than goodwill |  |                    | (116.2 | ) |          |  | (117.9 | )        |  |  | (143.0 | )
|                                                        |  |                    |        |   |          |  |        |          | 






|    |                                
|--- | -------------------------------
|(a) | Excluding goodwill amortization






|    |                               
|--- | ------------------------------
|(b) | Research and Development Costs

  




|    |                                        
|--- | ---------------------------------------
|(c) | Financial Result from Ongoing Contracts

Note 1(t)  


Note 5  Payroll and Staff






  


F-20



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 6  Financial Result


|                                                                            |  |                     |       |   |          |  |       |          |  |  |       |  
|--------------------------------------------------------------------------- |  | ------------------- | ----- | - | -------- |  | ----- | -------- |  |  | ----- | -
|                                                                            |  | 12/31/04            |       |   | 12/31/03 |  |       | 12/31/02 | 
|                                                                            |  |                     |       |   |          |  |       |          | 
|                                                                            |  | In Millions of Euro |      
|Dividends from Investments                                                  |  |                     | 0.5   |   |          |  | 2.1   |          |  |  | 0.4   |  
|Net Gain on sales of securities (e)                                         |  |                     | 4.8   |   |          |  | 1.5   |          |  |  |      |  
|Interest Expenses/Income(a) and (b)                                         |  |                     | (11.7 | ) |          |  | (11.6 | )        |  |  | (15.9 | )
|Changes in Provisions related to Unconsolidated Subsidiaries                |  |                     | (1.0  | ) |          |  |      |          |  |  | (0.5  | )
|Convertible Bond: Financial Costs and Amortization of Issuance
    Fees (c) |  |                     | (10.0 | ) |          |  | (9.7  | )        |  |  | (10.4 | )
|Convertible Bond: Amortization of Redemption Premium                        |  |                     | (11.4 | ) |          |  | (16.1 | )        |  |  | (16.9 | )
|Bond loan issued in May 2004 interest expenses                              |  |                     | (18.5 | ) |          |  |      |          |  |  |      |  
|Credit Facility: Financial Costs                                            |  |                     | (2.4  | ) |          |  | (1.9  | )        |  |  | (3.0  | )
|Valuation Allowance for Shares held by the Company                          |  |                     |      |   |          |  |      |          |  |  | (2.4  | )
|Others (d)                                                                  |  |                     | (4.3  | ) |          |  | (8.6  | )        |  |  | (18.2 | )
|                                                                            |  |                     |       |   |          |  |       |          | 
|Total Financial Result                                                      |  |                     | (54.0 | ) |          |  | (44.3 | )        |  |  | (66.9 | )
|                                                                            |  |                     |       |   |          |  |       |          | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | As described in Note 1(t), interest
    expenses/income as reported under Financial Result is exclusive
    of any financial result reported under Net Sales which may arise
    from ongoing turnkey contracts (see
    Note 4(c)).                                                                                                                                                                                                                                       
|   
|(b) | Including
    3.3 million
    from commercial paper in 2004 compared to
    7.6 million
    in 2003 and
    10.8 million
    in 2002.                                                                                                                                                                                                                                                                                                                                   
|   
|(c) | These financial costs and amortized issuance fees are related to
    the
    793.5 million
    convertible bond issued at the end of January 2002. These
    amounts were, respectively,
    6.6 million
    and
    3.4 million
    in 2004,
    7.2 million
    and
    2.5 million
    in 2003, and
    8.2 million
    and
    2.2 million
    in 2002.                                                                                                         
|   
|(d) | Including in 2003 a
    2.9 million
    exchange loss compared to a
    13.4 million
    exchange loss in 2002, resulting mainly from exchange losses due
    to the conversion into US Dollar functional currency of the
    Brazilian subsidiaries current accounts denominated in
    local currency following the significant devaluation in the
    Brazilian real in 2002, and the sudden US Dollar weakening
    compared to the European currencies at year-end.
|   
|(e) | Including in 2004 the loss on the repurchase of the OCEANE
    obligations of
    (4.9) million
    set off by the redemption premium amortization, offset by the
    income recognized on marketable securities.                                                                                                                                                                                                                                                         

Note 7  Non-operating Income (loss)


|                                                       |  |                     |       |   |          |  |      |          |  |  |      |  
|------------------------------------------------------ |  | ------------------- | ----- | - | -------- |  | ---- | -------- |  |  | ---- | -
|                                                       |  | 12/31/04            |       |   | 12/31/03 |  |      | 12/31/02 | 
|                                                       |  |                     |       |   |          |  |      |          | 
|                                                       |  | In Millions of Euro |      
|Gain/(Loss) on Sales of Consolidated Investments (a)   |  |                     | 3.0   |   |          |  | (1.5 | )        |  |  | 3.7  |  
|Gain on Sales of Unconsolidated Investments (b)        |  |                     |      |   |          |  |     |          |  |  | 1.9  |  
|Restructuring Costs (c)                                |  |                     | (12.0 | ) |          |  | (7.1 | )        |  |  | (7.0 | )
|Non-recurring Losses on Former Projects (d)            |  |                     | (0.6  | ) |          |  |     |          |  |  | (8.7 | )
|Net Gain on Sales of Property, Plant and Equipment (e) |  |                     | (1.2  | ) |          |  | 2.4  |          |  |  |     |  
|Other (f)                                              |  |                     | (5.3  | ) |          |  | (1.4 | )        |  |  | 3.2  |  
|                                                       |  |                     |       |   |          |  |      |          | 
|Non-operating Income (loss)                            |  |                     | (16.1 | ) |          |  | (7.6 | )        |  |  | (6.9 | )
|                                                       |  |                     |       |   |          |  |      |          | 






|    |                                                                                                                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | In 2004, the gain comes from the sales of EHR and IG SpA for
    2.3 and
    0.7 million,
    respectively. In 2003, the loss comes from the disposal of
    Unirig Pty Ltd. shares. In 2002, the gain results from the sale
    of Ipedex shares.
|   
|(b) | In 2002, this item corresponds to the sale of Rintekno shares.                                                                                                                                                                                      

F-21



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(c) | In 2004, this item consists of the restructuring a German
    subsidiary. In 2003, this item consists of restructuring costs
    of German and Finnish subsidiaries. In 2002, it includes
    restructuring costs of German subsidiaries.                                                                                                                                                                                                                                  
|   
|(d) | In 2002, this item includes TP Germany non-operating costs
    related to two contracts dating from the acquisition by the
    Group of KTI/ MDEU from Mannesmann in 1999.                                                                                                                                                                                                                                                                                                 
|   
|(e) | In 2004, this item includes mainly the gains and losses on the
    sales of fixed assets of the Group (an office building in
    Boulogne, France for
    (3.1) million
    and an office building in Aberdeen, Scotland (one of the
    Westhill building) for
    2.6 million).
    In 2003, this item includes a
    3.5 million
    net gain on the S.C.I. CB3 building sale and a
    (1.1) million
    loss resulting from the associated move from the building.
|   
|(f) | In 2004, this item includes a
    3.0 million
    costs pursuant to the 2003 sale of the Groups headquarters
    in Paris, France. In 2002, this item includes
    6.2 million
    in tax credits linked to the payment of dividends from Italian
    subsidiaries in previous years, and a
    1.3 million
    capital gain on the repurchase of convertible bonds.                                                                                                   

Note 8  Income Tax


Note 1 (q)




| |                                   
| | ----------------------------------
| | (a) Analysis of Income Tax Expense

|                                                                            |                   |                     |       |       |          |  |       |          |   |  |       |       |  
|--------------------------------------------------------------------------- | ----------------- | ------------------- | ----- | ----- | -------- |  | ----- | -------- | - |  | ----- | ----- | -
|                                                                            |                   | 12/31/04            |       |       | 12/31/03 |  |       | 12/31/02 |  
|                                                                            |                   |                     |       |       |          |  |       |          |  
|                                                                            |                   | In Millions of Euro |      
|Current Income Tax                                                          |                   |                     | (23.0 | )     |          |  | (94.2 | )        |   |  | (26.0 | )    
|                                                                            | French Companies  |                     |       | 15.8  |          |  |       | (21.3    | ) |  |       | 44.9  |  
|                                                                            | Foreign Companies |                     |       | (38.8 | )        |  |       | (72.9    | ) |  |       | (70.9 | )
|Deferred Income Tax                                                         |                   |                     | (41.5 | )     |          |  | 12.2  |          |   |  | (19.9 | )    
|                                                                            | French Companies  |                     |       | (5.5  | )        |  |       | 10.9     |   |  |       | (13.4 | )
|                                                                            | Foreign Companies |                     |       | (36.0 | )        |  |       | 1.3      |   |  |       | (6.5  | )
|                                                                            |                   |                     |       |       |          |  |       |          |  
|Total Income Tax Expense before Tax on Net Gain on Sales of
    Investments |                   |                     | (64.5 | )     |          |  | (82.0 | )        |   |  | (45.9 | )    
|                                                                            |                   |                     |       |       |          |  |       |          |  
|Tax on the Net Gain on Sales of Investments                                 |                   |                     | (0.7  | )     |          |  |      |          |   |  | (0.4  | )    
|                                                                            |                   |                     |       |       |          |  |       |          |  
|Total Income Tax Expense                                                    |                   |                     | (65.2 | )     |          |  | (82.0 | )        |   |  | (46.3 | )    
|                                                                            |                   |                     |       |       |          |  |       |          |  

F-22



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Reconciliation between the Provision for Income Tax before
    Net Gain on Sales of Investments and Pre-tax Income before Gain
    on Sales of Investments



|                                                                            |                                            |                     |       |       |          |  |       |          |   |  |       |       |  
|--------------------------------------------------------------------------- | ------------------------------------------ | ------------------- | ----- | ----- | -------- |  | ----- | -------- | - |  | ----- | ----- | -
|                                                                            |                                            | 12/31/04            |       |       | 12/31/03 |  |       | 12/31/02 |  
|                                                                            |                                            |                     |       |       |          |  |       |          |  
|                                                                            |                                            | In Millions of Euro |      
|Net Income (Loss)                                                           |                                            |                     | 4.7   |       |          |  | (19.7 | )        |   |  | (29.4 | )    
|Minority Interests                                                          |                                            |                     | 2.4   |       |          |  | 0.8   |          |   |  | (3.9  | )    
|Income Tax before Tax on the Net Gain on Sales of Investments               |                                            |                     | 64.5  |       |          |  | 82.0  |          |   |  | 46.3  |      
|                                                                            | Less: Income of Equity Affiliates          |                     |       | (1.2  | )        |  |       | (1.1     | ) |  |       |      |  
|                                                                            | Less: Non-deductible Goodwill Amortization |                     |       | 130.2 |          |  |       | 126.6    |   |  |       | 130.7 |  
|                                                                            | Less: Gain on Sales of Investments         |                     |       | (5.2  | )        |  |       | (3.5     | ) |  |       | (5.6  | )
|                                                                            |                                            |                     |       |       |          |  |       |          |  
|Pre-tax Income before Gain on Sales of Investments                          |                                            |                     | 195.4 |       |          |  | 185.1 |          |   |  | 138.1 |      
|                                                                            |                                            |                     |       |       |          |  |       |          |  
|French Income Tax Rate                                                      |                                            |                     | 35.43 | %     |          |  | 35.43 | %        |   |  | 35.43 | %    
|Theoretical Income Tax                                                      |                                            |                     | 69.2  |       |          |  | 65.6  |          |   |  | 48.9  |      
|Difference between French and Foreign Tax Rates                             |                                            |                     | (7.2  | )     |          |  | 6.9   |          |   |  | 6.3   |      
|Permanent Differences                                                       |                                            |                     | (2.9  | )     |          |  | (3.1  | )        |   |  | (4.4  | )    
|Others(a)                                                                   |                                            |                     | 5.4   |       |          |  | 12.6  |          |   |  | (4.5  | )    
|                                                                            |                                            |                     |       |       |          |  |       |          |  
|Total Income Tax Expense before Tax on Net Gain on Sales of
    Investments |                                            |                     | 64.5  |       |          |  | 82.0  |          |   |  | 46.3  |      
|                                                                            |                                            |                     |       |       |          |  |       |          |  
|Effective Tax Rate before Tax on Net Gain on Sales of
    Investments(b)    |                                            |                     | 33.01 | %     |          |  | 44.29 | %        |   |  | 33.53 | %    






|    |                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------
|(a) | Including
    13.0 million
    in 2003 related to operational losses not recognized in the
    Offshore American subsidiaries.



|    |                                                                                                                                                                                                                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | The effective tax rate declined to 33.01% in 2004
    from 44.3% in 2003 and 33.5% in 2002. The
    apparent increase between 2002 and 2003 results
    primarily from the Groups decision not to recognize
    further deferred tax assets in view of the operational losses
    recorded in the United States in 2003 and in 2002.



|    |                                    
|--- | -----------------------------------
|(c) | Deferred Tax Assets and Liabilities



|                             |  |                     |        |   |          |  |        |          |  |  |        |  
|---------------------------- |  | ------------------- | ------ | - | -------- |  | ------ | -------- |  |  | ------ | -
|                             |  | 12/31/04            |        |   | 12/31/03 |  |        | 12/31/02 | 
|                             |  |                     |        |   |          |  |        |          | 
|                             |  | In Millions of Euro |       
|Deferred Tax Assets(a)       |  |                     | 80.1   |   |          |  | 120.1  |          |  |  | 73.6   |  
|Deferred Tax Liabilities(b)  |  |                     | (144.8 | ) |          |  | (162.5 | )        |  |  | (126.2 | )
|                             |  |                     |        |   |          |  |        |          | 
|Net Deferred Tax Liabilities |  |                     | (64.7  | ) |          |  | (42.4  | )        |  |  | (52.6  | )
|                             |  |                     |        |   |          |  |        |          | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | In 2004 and 2003, the Group decided not to recognize
    deferred tax assets on the operational losses in the Offshore
    American subsidiaries leading to a decrease in net deferred tax
    assets between December 31, 2002 and December 31,
    2003. On the basis of the future results of the Group, the
    group decided to record a valuation allowance against a part of
    the deferred tax assets relating to losses carried forward in
    the United States for U.S.$12.8 million in 2002.



|    |                                                                                                                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Deferred tax liabilities relate to differences between
    accounting and tax depreciation in the purchase price allocation
    at the time of the acquisition of Coflexip in October 2001
    (see Note 2), specially in variance of




F-23



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


 






|    |                           
|--- | --------------------------
|(d) | Tax Losses Carried Forward




 


Note 9  Diluted Earnings per Share


Note 1(v)


|                                                                                                                    |                                      |                       |        |        |          |  |        |          |     |  |        |        |    
|------------------------------------------------------------------------------------------------------------------- | ------------------------------------ | --------------------- | ------ | ------ | -------- |  | ------ | -------- | --- |  | ------ | ------ | ---
|                                                                                                                    |                                      | 12/31/04              |        |        | 12/31/03 |  |        | 12/31/02 |    
|                                                                                                                    |                                      |                       |        |        |          |  |        |          |    
|                                                                                                                    |                                      | (In Millions of Euro) |       
|Net Income                                                                                                          |                                      |                       | 4.7    |        |          |  | (19.7  | )        |     |  | (29.4  | )     
|Amortization of Convertible Bond Redemption Premium, after
    Tax                                                  |                                      |                       | 7.4    |        |          |  | 10.4   |          |     |  | 10.9   |       
|Convertible Bond Financial Costs, after Tax                                                                         |                                      |                       | 6.5    |        |          |  | 4.6    |          |     |  | 4.7    |       
|Non-Operating Loss                                                                                                  |                                      |                       | 16.1   |        |          |  | 7.6    |          |     |  | 6.9    |       
|Goodwill Amortization                                                                                               |                                      |                       | 117.3  |        |          |  | 113.7  |          |     |  | 117.8  |       
|                                                                                                                    |                                      |                       |        |        |          |  |        |          |    
|Restated net Income before Non-operating income, Goodwill
    amortization and Convertible Bond expenses, after tax |                                      |                       | 152.0  |        |          |  | 116.6  |          |     |  | 110.9  |       
|                                                                                                                    |                                      |                       |        |        |          |  |        |          |    
|Number of Shares (In Thousands):                                                                                    |                                      |                       |        |        |          |  |        |          |     |  |        |       
|                                                                                                                    | Issued Shares as of December 31      |                       |        | 24,111 |          |  |        | 23,738   | (a) |  |        | 23,408 |    
|                                                                                                                    | Stock Options (Subscription Options) |                       |        | 1,396  |          |  |        | 1,496    |     |  |        | 476    | (b)
|                                                                                                                    | Convertible Bonds                    |                       |        | 3,719  |          |  |        | 4,209    |     |  |        | 4,502  |    
|                                                                                                                    | Technip Shares held by Subsidiaries  |                       |        | (340   | )        |  |        | (141     | )   |  |        |       |    
|                                                                                                                    |                                      |                       |        |        |          |  |        |          |    
|                                                                                                                    |                                      |                       | 28,886 |        |          |  | 29,302 |          |     |  | 28,386 |       
|                                                                                                                    |                                      |                       |        |        |          |  |        |          |    
|Diluted Earnings per Share (in Euro) (c):                                                                           |                                      |                       | 0.64   |        |          |  |       |          |     |  |       |       
|Diluted Earnings per Share before Non-operating Income and
    Goodwill Amortization                                |                                      |                       | 5.26   |        |          |  | 3.98   |          |     |  | 3.91   |       






|    |                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | In 2003, does not take into account the capital increase
    resulting from the 2004 Employee Stock Participation Plan
    (331,780 shares) which became effective as of January 1,
    2003.



|    |                                                                                          
|--- | -----------------------------------------------------------------------------------------
|(b) | In 2002, does not take into account the 2003 plan, which
    accounts for 697,000 shares.



|    |                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------
|(c) | In 2003 and 2002, the diluted earnings per share are negative
    and are consequently not disclosed.

F-24



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 10  Compensation of the Members of the
Board of Directors


 


Note 11  Intangible Assets, net




|                                 |  |                     |         |   |          |  |         |          |  |  |         |  
|-------------------------------- |  | ------------------- | ------- | - | -------- |  | ------- | -------- |  |  | ------- | -
|                                 |  | 12/31/04            |         |   | 12/31/03 |  |         | 12/31/02 | 
|                                 |  |                     |         |   |          |  |         |          | 
|                                 |  | In Millions of Euro |        
|Other Intangible Assets, gross   |  |                     | 152.4   |   |          |  | 132.3   |          |  |  | 142.3   |  
|Accumulated Amortization         |  |                     | (74.2   | ) |          |  | (44.0   | )        |  |  | (33.5   | )
|                                 |  |                     |         |   |          |  |         |          | 
|Other Intangible Assets, Net (a) |  |                     | 78.2    |   |          |  | 88.3    |          |  |  | 108.8   |  
|                                 |  |                     |         |   |          |  |         |          | 
|Goodwill                         |  |                     | 2,728.4 |   |          |  | 2,737.6 |          |  |  | 2,746.6 |  
|Accumulated Amortization         |  |                     | (442.7  | ) |          |  | (328.9  | )        |  |  | (217.8  | )
|                                 |  |                     |         |   |          |  |         |          | 
|Goodwill, Net (b)                |  |                     | 2,285.7 |   |          |  | 2,408.7 |          |  |  | 2,528.8 |  
|                                 |  |                     |         |   |          |  |         |          | 
|Intangible Assets, net           |  |                     | 2,363.9 |   |          |  | 2,497.0 |          |  |  | 2,637.6 |  
|                                 |  |                     |         |   |          |  |         |          | 



|    |                  
|--- | -----------------
|(a) | Intangible Assets





| |   |                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 51.4 million
    of patents and trademarks (gross value) identified when Coflexip
    purchased the Aker Maritime Deepwater Division in January 2001,                                                                        
|
| |  | 59.4 million
    of patents and trademarks (gross value) identified at the time
    of the public offers on Coflexip and Isis in October 2001,
    others than those resulting from the Aker Maritime Deepwater
    Division.





| |   |                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 19.7 million
    (gross value) of software for its E-Procurement platform. The
    investment is amortized over five years since the end of
    November 2001.



|    |              
|--- | -------------
|(b) | Goodwill, net

|                            |  |                     |         |  |          |  |         |          |  |  |         | 
|--------------------------- |  | ------------------- | ------- |  | -------- |  | ------- | -------- |  |  | ------- | 
|                            |  | 12/31/04            |         |  | 12/31/03 |  |         | 12/31/02 | 
|                            |  |                     |         |  |          |  |         |          | 
|                            |  | In Millions of Euro |        
|KTI/MDEU                    |  |                     | 107.9   |  |          |  | 119.5   |          |  |  | 127.5   | 
|Coflexip (April 2000)       |  |                     | 341.2   |  |          |  | 363.6   |          |  |  | 386.0   | 
|Coflexip (October 2001)     |  |                     | 1,789.9 |  |          |  | 1,872.2 |          |  |  | 1,993.5 | 
|Coflexip Merger (July 2003) |  |                     | 28.3    |  |          |  | 34.5    |          |  |  |        | 
|Others                      |  |                     | 18.4    |  |          |  | 18.9    |          |  |  | 21.8    | 
|                            |  |                     |         |  |          |  |         |          | 
|Net                         |  |                     | 2,285.7 |  |          |  | 2,408.7 |          |  |  | 2,528.8 | 
|                            |  |                     |         |  |          |  |         |          | 

Note 1(g)


F-25



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


  


CSO:


 


Note 2  


   Note 2).   Note 2 


Note 12  Property, Plant and Equipment,
net


|                         |  |                     |      |  |           |  |       |           |  |  |            |   |  |           |        |   |        |  |        |       |  |  |       |   |  |  |         |  
|------------------------ |  | ------------------- | ---- |  | --------- |  | ----- | --------- |  |  | ---------- | - |  | --------- | ------ | - | ------ |  | ------ | ----- |  |  | ----- | - |  |  | ------- | -
|                         |  |                     |      |  |           |  |       | Machinery |  |  | Office     |   |  |           |        |  
|                         |  |                     |      |  |           |  |       | and       |  |  | Fixtures & |   |  |           |        |  
|                         |  | Land                |      |  | Buildings |  |       | Vessels   |  |  | Equipment  |   |  | Furniture |        |   | Others |  |        | Total | 
|                         |  |                     |      |  |           |  |       |           |  |  |            |   |  |           |        |   |        |  |        |       | 
|                         |  | In millions of Euro |     
|Gross Value              |  |                     | 14.0 |  |           |  | 152.0 |           |  |  | 694.5      |   |  |           | 440.8  |   |        |  | 108.4  |       |  |  | 60.6  |   |  |  | 1,470.3 |  
|Accumulated Depreciation |  |                     |     |  |           |  | (65.1 | )         |  |  | (285.6     | ) |  |           | (285.1 | ) |        |  | (84.3  | )     |  |  | (35.3 | ) |  |  | (755.4  | )
|                         |  |                     |      |  |           |  |       |           |  |  |            |   |  |           |        |   |        |  |        |       | 
|Total December 31, 2004  |  |                     | 14.0 |  |           |  | 86.9  |           |  |  | 408.9      |   |  |           | 155.7  |   |        |  | 24.1   |       |  |  | 25.3  |   |  |  | 714.9   |  
|                         |  |                     |      |  |           |  |       |           |  |  |            |   |  |           |        |   |        |  |        |       | 
|Gross Value              |  |                     | 14.1 |  |           |  | 181.9 |           |  |  | 655.7      |   |  |           | 443.0  |   |        |  | 141.1  |       |  |  | 63.2  |   |  |  | 1,499.0 |  
|Accumulated Depreciation |  |                     |     |  |           |  | (81.5 | )         |  |  | (252.7     | ) |  |           | (305.3 | ) |        |  | (96.0  | )     |  |  | (25.0 | ) |  |  | (760.5  | )
|                         |  |                     |      |  |           |  |       |           |  |  |            |   |  |           |        |   |        |  |        |       | 
|Total December 31, 2003  |  |                     | 14.1 |  |           |  | 100.4 |           |  |  | 403.0      |   |  |           | 137.7  |   |        |  | 45.1   |       |  |  | 38.2  |   |  |  | 738.5   |  
|                         |  |                     |      |  |           |  |       |           |  |  |            |   |  |           |        |   |        |  |        |       | 
|Gross Value              |  |                     | 73.5 |  |           |  | 243.0 |           |  |  | 625.7      |   |  |           | 439.1  |   |        |  | 162.3  |       |  |  | 60.1  |   |  |  | 1,603.7 |  
|Accumulated Depreciation |  |                     |     |  |           |  | (99.5 | )         |  |  | (196.3     | ) |  |           | (302.9 | ) |        |  | (114.2 | )     |  |  | (29.7 | ) |  |  | (742.6  | )
|                         |  |                     |      |  |           |  |       |           |  |  |            |   |  |           |        |   |        |  |        |       | 
|Total December 31, 2002  |  |                     | 73.5 |  |           |  | 143.5 |           |  |  | 429.4      |   |  |           | 136.2  |   |        |  | 48.1   |       |  |  | 30.4  |   |  |  | 861.1   |  
|                         |  |                     |      |  |           |  |       |           |  |  |            |   |  |           |        |   |        |  |        |       | 

  





F-26



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|          |  |                     |      |  |          |  |   |       |  |  |      |  |  |  |     | 
|--------- |  | ------------------- | ---- |  | -------- |  | - | ----- |  |  | ---- |  |  |  | --- | 
|          |  | 12/31/04            |      |  | 12/31/03 | 
|          |  |                     |      |  |          | 
|          |  | Gross               |      |  | Net      |  |   | Gross |  |  | Net  | 
|          |  |                     |      |  |          |  |   |       |  |  |      | 
|          |  | In Millions of Euro |     
|Buildings |  |                     |     |  |          |  |  |       |  |  | 14.0 |  |  |  | 3.0 | 
|Vessels   |  |                     | 52.5 |  |          |  |  |       |  |  | 52.6 |  |  |  | 3.8 | 
|Equipment |  |                     | 4.1  |  |          |  |  |       |  |  | 4.1  |  |  |  |    | 
|          |  |                     |      |  |          |  |   |       |  |  |      | 
|Total     |  |                     | 56.6 |  |          |  |  |       |  |  | 70.7 |  |  |  | 6.8 | 
|          |  |                     |      |  |          |  |   |       |  |  |      | 

Note 13  Other Investments and Loans, net


|                                 |  |                     |      |   |          |  |      |          |  |  |      |  
|-------------------------------- |  | ------------------- | ---- | - | -------- |  | ---- | -------- |  |  | ---- | -
|                                 |  | 12/31/04            |      |   | 12/31/03 |  |      | 12/31/02 | 
|                                 |  |                     |      |   |          |  |      |          | 
|                                 |  | In Millions of Euro |     
|Investments at Historical Cost   |  |                     | 6.7  |   |          |  | 9.3  |          |  |  | 9.7  |  
|Valuation Allowance              |  |                     | (2.4 | ) |          |  | (5.3 | )        |  |  | (4.7 | )
|                                 |  |                     |      |   |          |  |      |          | 
|Net Value                        |  |                     | 4.3  |   |          |  | 4.0  |          |  |  | 5.0  |  
|                                 |  |                     |      |   |          |  |      |          | 
|Loans Related to Investments     |  |                     | 2.1  |   |          |  | 1.5  |          |  |  | 2.2  |  
|Valuation Allowance              |  |                     | (1.6 | ) |          |  | (1.5 | )        |  |  | (1.5 | )
|                                 |  |                     |      |   |          |  |      |          | 
|Net Value                        |  |                     | 0.5  |   |          |  |     |          |  |  | 0.7  |  
|                                 |  |                     |      |   |          |  |      |          | 
|Security Deposits                |  |                     | 0.7  |   |          |  | 2.5  |          |  |  | 5.9  |  
|Others                           |  |                     | 0.3  |   |          |  | 1.9  |          |  |  | 6.7  |  
|                                 |  |                     |      |   |          |  |      |          | 
|Other Investments and Loans, net |  |                     | 5.8  |   |          |  | 8.4  |          |  |  | 18.3 |  
|                                 |  |                     |      |   |          |  |      |          | 

Note 14  Equity Affiliates




|         |  |                  |       |   |                     |  |      |          |  |  |          |   |  |          |      |  |          |  |     |  |  |  |     | 
|-------- |  | ---------------- | ----- | - | ------------------- |  | ---- | -------- |  |  | -------- | - |  | -------- | ---- |  | -------- |  | --- |  |  |  | --- | 
|         |  | Percentage Owned |       |   | In Millions of Euro | 
|         |  |                  |       |   |                     | 
|         |  | 12/31/04         |       |   | 12/31/03            |  |      | 12/31/02 |  |  | 12/31/04 |   |  | 12/31/03 |      |  | 12/31/02 | 
|         |  |                  |       |   |                     |  |      |          |  |  |          |   |  |          |      |  |          | 
|TP India |  |                  |      |   |                     |  | 50.0 | %        |  |  | 50.0     | % |  |          |     |  |          |  | 1.1 |  |  |  | 0.9 | 
|Nargan   |  |                  | 20.0  | % |                     |  | 20.0 | %        |  |  | 20.0     | % |  |          | 1.6  |  |          |  | 1.0 |  |  |  | 0.3 | 
|Kti Spa  |  |                  | 25.0  | % |                     |  |     |          |  |  |         |   |  |          | 0.8  |  |          |  |    |  |  |  |    | 
|TPL (a)  |  |                  | 100.0 | % |                     |  |     |          |  |  |         |   |  |          | 11.1 |  |          |  |    |  |  |  |    | 
|         |  |                  |       |   |                     |  |      |          |  |  |          |   |  |          |      |  |          | 
|Total    |  |                  |       |   |                     |  |      |          |  |  |          |   |  |          | 13.5 |  |          |  | 2.1 |  |  |  | 1.2 | 
|         |  |                  |       |   |                     |  |      |          |  |  |          |   |  |          |      |  |          | 






|    |                                  
|--- | ---------------------------------
|(a) | Company that is being liquidated.

Note 15  Contracts-in-progress


Note 1(k)


|                           |  |                     |         |  |          |  |         |          |  |  |         | 
|-------------------------- |  | ------------------- | ------- |  | -------- |  | ------- | -------- |  |  | ------- | 
|                           |  | 12/31/04            |         |  | 12/31/03 |  |         | 12/31/02 | 
|                           |  |                     |         |  |          |  |         |          | 
|                           |  | In Millions of Euro |        
|Contracts-in-progress, net |  |                     | 6,593.4 |  |          |  | 6,368.2 |          |  |  | 4,896.2 | 
|                           |  |                     |         |  |          |  |         |          | 

F-27



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 1(k)   


Note 16  Inventories and Deferred Bid Costs,
net


|                                        |  |                     |      |   |          |  |       |          |  |  |      |  
|--------------------------------------- |  | ------------------- | ---- | - | -------- |  | ----- | -------- |  |  | ---- | -
|                                        |  | 12/31/04            |      |   | 12/31/03 |  |       | 12/31/02 | 
|                                        |  |                     |      |   |          |  |       |          | 
|                                        |  | In Millions of Euro |     
|Inventories                             |  |                     |      |   |          |  |       |          |  |  |      |  
|Raw Materials                           |  |                     | 39.0 |   |          |  | 40.1  |          |  |  | 45.6 |  
|Unfinished Goods                        |  |                     | 46.1 |   |          |  | 23.5  |          |  |  | 18.5 |  
|Finished Goods and Merchandise          |  |                     | 13.6 |   |          |  | 13.5  |          |  |  | 15.8 |  
|Less: Valuation Allowance               |  |                     | (9.6 | ) |          |  | (10.1 | )        |  |  | (8.4 | )
|                                        |  |                     |      |   |          |  |       |          | 
|Inventories, net                        |  |                     | 89.1 |   |          |  | 67.0  |          |  |  | 71.5 |  
|                                        |  |                     |      |   |          |  |       |          | 
|Deferred Bid Costs, net (a)             |  |                     | 9.1  |   |          |  | 6.6   |          |  |  | 9.3  |  
|                                        |  |                     |      |   |          |  |       |          | 
|Inventories and Deferred Bid Costs, net |  |                     | 98.2 |   |          |  | 73.6  |          |  |  | 80.8 |  
|                                        |  |                     |      |   |          |  |       |          | 






|    |                                                                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Costs directly linked to the awarding of future turnkey
    engineering/ construction contracts, for which the signature can
    be reasonably expected, are deferred and capitalized in the
    balance sheet.

Note 17  Accounts Receivable, net


|                                                 |  |                     |       |   |          |  |       |          |  |  |       |  
|------------------------------------------------ |  | ------------------- | ----- | - | -------- |  | ----- | -------- |  |  | ----- | -
|                                                 |  | 12/31/04            |       |   | 12/31/03 |  |       | 12/31/02 | 
|                                                 |  |                     |       |   |          |  |       |          | 
|                                                 |  | In Millions of Euro |      
|Receivables on Contracts and Guarantee Retention |  |                     | 591.0 |   |          |  | 755.6 |          |  |  | 725.1 |  
|Doubtful Accounts                                |  |                     | 24.5  |   |          |  | 41.8  |          |  |  | 41.0  |  
|Allowance for Doubtful Accounts                  |  |                     | (20.7 | ) |          |  | (41.8 | )        |  |  | (40.5 | )
|                                                 |  |                     |       |   |          |  |       |          | 
|Total Accounts Receivable, net                   |  |                     | 594.8 |   |          |  | 755.6 |          |  |  | 725.6 |  
|                                                 |  |                     |       |   |          |  |       |          | 







F-28



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 18  Other Current Assets, net


|                                                              |  |                     |       |  |          |  |       |          |  |  |       |  |  |  |       | 
|------------------------------------------------------------- |  | ------------------- | ----- |  | -------- |  | ----- | -------- |  |  | ----- |  |  |  | ----- | 
|                                                              |  | 12/31/04            |       |  | 12/31/03 |  |       | 12/31/02 | 
|                                                              |  |                     |       |  |          |  |       |          | 
|                                                              |  | Gross               |       |  | Net      |  |       | Net      |  |  | Net   | 
|                                                              |  |                     |       |  |          |  |       |          |  |  |       | 
|                                                              |  | In millions of Euro |      
|Deferred Tax Assets (see Note 8(c))                           |  |                     | 133.9 |  |          |  | 80.1  |          |  |  | 120.1 |  |  |  | 73.6  | 
|Value Added Tax                                               |  |                     | 42.4  |  |          |  | 42.4  |          |  |  | 60.0  |  |  |  | 40.0  | 
|Prepaid Income Tax and Other Current Tax                      |  |                     | 109.5 |  |          |  | 109.5 |          |  |  | 39.8  |  |  |  | 62.6  | 
|Advances to Non-Consolidated Subsidiaries                     |  |                     | 13.0  |  |          |  | 10.7  |          |  |  | 0.4   |  |  |  | 7.8   | 
|Joint Venture Associates Current Account                     |  |                     | 106.3 |  |          |  | 97.1  |          |  |  | 13.6  |  |  |  | 16.8  | 
|Receivables from Suppliers                                    |  |                     |      |  |          |  |      |          |  |  | 14.5  |  |  |  | 2.5   | 
|Receivables from Personnel                                    |  |                     | 1.7   |  |          |  | 1.7   |          |  |  | 1.7   |  |  |  | 1.4   | 
|Dividends to be received on Investments (Deduction at Source) |  |                     | 17.4  |  |          |  | 17.4  |          |  |  |      |  |  |  | 1.5   | 
|Prepaid Expenses                                              |  |                     | 80.3  |  |          |  | 78.8  |          |  |  | 39.5  |  |  |  | 53.4  | 
|Insurance Indemnities to be Received                          |  |                     | 0.1   |  |          |  | 0.1   |          |  |  | 0.1   |  |  |  | 5.4   | 
|Funds in Escrow                                               |  |                     |      |  |          |  |      |          |  |  |      |  |  |  | 68.9  | 
|Redemption Premium on Bonds (see Note 23)                     |  |                     | 76.6  |  |          |  | 32.1  |          |  |  | 51.6  |  |  |  | 73.5  | 
|Others                                                        |  |                     | 247.9 |  |          |  | 235.4 |          |  |  | 86.4  |  |  |  | 114.2 | 
|                                                              |  |                     |       |  |          |  |       |          |  |  |       | 
|Total Other Current Assets, Net                               |  |                     | 829.1 |  |          |  | 705.3 |          |  |  | 427.7 |  |  |  | 521.6 | 
|                                                              |  |                     |       |  |          |  |       |          |  |  |       | 

Note 19  Cash and Cash Equivalents




| |                                                 
| | ------------------------------------------------
| | (a) Marketable Securities  Cash
    Equivalents

|                                            |  |                     |       |  |          |  |       |          |  |  |       |  
|------------------------------------------- |  | ------------------- | ----- |  | -------- |  | ----- | -------- |  |  | ----- | -
|                                            |  | 12/31/04            |       |  | 12/31/03 |  |       | 12/31/02 | 
|                                            |  |                     |       |  |          |  |       |          | 
|                                            |  | In millions of Euro |      
|Marketable Securities:                      |  |                     |       |  |          |  |       |          |  |  |       |  
|Historical Cost                             |  |                     | 739.4 |  |          |  | 110.0 |          |  |  | 102.6 |  
|Valuation Allowance                         |  |                     |      |  |          |  |      |          |  |  | (3.5  | )
|                                            |  |                     |       |  |          |  |       |          | 
|Market Value at Year-end                    |  |                     | 739.4 |  |          |  | 110.0 |          |  |  | 99.1  |  
|                                            |  |                     |       |  |          |  |       |          | 
|Detailed Analysis of Marketable Securities: |  |                     |       |  |          |  |       |          |  |  |       |  
|Mutual Funds                                |  |                     | 501.8 |  |          |  | 40.5  |          |  |  | 70.4  |  
|Certificates of Deposit                     |  |                     | 103.4 |  |          |  | 21.1  |          |  |  | 15.5  |  
|Shares held by the Company(*)               |  |                     |      |  |          |  |      |          |  |  | 3.2   |  
|Fixed Term Deposits                         |  |                     | 67.3  |  |          |  | 34.6  |          |  |  | 8.3   |  
|Others                                      |  |                     | 66.9  |  |          |  | 13.8  |          |  |  | 1.7   |  
|                                            |  |                     |       |  |          |  |       |          | 
|Total Marketable Securities                 |  |                     | 739.4 |  |          |  | 110.0 |          |  |  | 99.1  |  
|                                            |  |                     |       |  |          |  |       |          | 






|    |                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------
|(*) | In 2004 and 2003, shares held by the company have been excluded
    from Groups shareholders equity.





| |         
| | --------
| | (b) Cash

  


F-29



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                                                          
| | -------------------------------------------------------------------------
| | (c) Detailed Analysis of Cash and Marketable
    Securities by Currencies

|                    |  |                     |         |  |          |  |       |          |  |  |       | 
|------------------- |  | ------------------- | ------- |  | -------- |  | ----- | -------- |  |  | ----- | 
|                    |  | 12/31/04            |         |  | 12/31/03 |  |       | 12/31/02 | 
|                    |  |                     |         |  |          |  |       |          | 
|                    |  | In Millions of Euro |        
|Euro                |  |                     | 793.0   |  |          |  | 391.9 |          |  |  | 315.0 | 
|U.S. Dollar         |  |                     | 431.7   |  |          |  | 311.4 |          |  |  | 260.9 | 
|Great Britain Pound |  |                     | 87.0    |  |          |  | 63.1  |          |  |  | 61.8  | 
|Norwegian Crown     |  |                     | 19.1    |  |          |  | 40.0  |          |  |  | 27.2  | 
|Others              |  |                     | 103.2   |  |          |  | 86.0  |          |  |  | 76.2  | 
|                    |  |                     |         |  |          |  |       |          | 
|Total               |  |                     | 1,434.0 |  |          |  | 892.4 |          |  |  | 741.1 | 
|                    |  |                     |         |  |          |  |       |          | 



Note 20  Shareholders Equity




| |                                                            
| | -----------------------------------------------------------
| | (a) Parent Companys Common Stock Breakdown and
    Changes




|                                                 |  |               |            |              |        |  |      | 
|------------------------------------------------ |  | ------------- | ---------- | ------------ | ------ |  | ---- | 
|                                                 |  | No. of Shares |            |              | Common | 
|                                                 |  | Outstanding   |            |              | Stock  | 
|                                                 |  |               |            |              |        | 
|                                                 |  |               |            | (in Millions |       
|                                                 |  |               |            | of Euro)     |       
|Common Stock as of December 31, 2002             |  |               | 23,408,004 |              |        |  | 71.4 | 
|Increase related to the Merger with Coflexip (1) |  |               | 330,327    |              |        |  | 1.0  | 
|                                                 |  |               |            |              |        | 
|Common Stock as of December 31, 2003             |  |               | 23,738,331 |              |        |  | 72.4 | 
|Employee Subscriptions (2)                       |  |               | 331,780    |              |        |  | 1.0  | 
|Option of Subscription for Share Exercised (3)   |  |               | 40,543     |              |        |  | 0.1  | 
|                                                 |  |               |            |              |        | 
|Common Stock as of December 31, 2004             |  |               | 24,110,654 |              |        |  | 73.5 | 
|                                                 |  |               |            |              |        | 






|    |                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------
|(1) | Capital increase resulting from the merger with Coflexip in July
    2003 (see Note 2).                                            
|   
|(2) | Employee subscriptions: The shareholders authorized the
    conditions for such transaction at a meeting held on
    July 11, 2003.
|   
|(3) | These increases result from the exercise of stock options
    granted to employees as described in
    Note 20(d).                 



F-30



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                               
| | ----------------------------------------------
| | (b) Technip Shareholders as of
    December 31

|                                                     |  |          |       |   |          |  |       |          |  |  |       |  
|---------------------------------------------------- |  | -------- | ----- | - | -------- |  | ----- | -------- |  |  | ----- | -
|                                                     |  | 12/31/04 |       |   | 12/31/03 |  |       | 12/31/02 | 
|                                                     |  |          |       |   |          |  |       |          | 
|Oppenheimer Funds Inc (*)                            |  |          | 6.0   | % |          |  |      |          |  |  |      |  
|IFP                                                  |  |          | 3.2   | % |          |  | 6.7   | %        |  |  | 6.8   | %
|Gaz de France                                        |  |          | 0.0   | % |          |  | 7.2   | %        |  |  | 7.3   | %
|Total Group                                          |  |          | 0.0   | % |          |  | 3.3   | %        |  |  | 3.8   | %
|Employees                                            |  |          | 2.4   | % |          |  | 2.6   | %        |  |  | 2.6   | %
|Treasury Shares and Shares held by Subsidiaries (**) |  |          | 1.4   | % |          |  | 0.6   | %        |  |  | 0.2   | %
|Others                                               |  |          | 87.0  | % |          |  | 79.6  | %        |  |  | 79.3  | %
|                                                     |  |          |       |   |          |  |       |          | 
|Total                                                |  |          | 100.0 | % |          |  | 100.0 | %        |  |  | 100.0 | %
|                                                     |  |          |       |   |          |  |       |          | 






Note 20(a)




| |                                       
| | --------------------------------------
| | (c) Cumulative Translation Adjustments

Note 1(f)




| |                                 
| | --------------------------------
| | (d) Executive Stock Option Plans













| |   |                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Stock option plan 9.2 was authorized by the shareholders
    meeting held on May 21, 1996 and implemented by the Board
    of Directors on March 24, 1997. These options are valid up
    to ten years from the date of grant.  
|
| |  | Stock option plan 9.3 was authorized by the shareholders
    meeting held on May 21, 1996 and implemented by the Board
    of Directors on May 18, 1998. These options are valid up to
    ten years from the date of grant.    
|
| |  | Stock option plan 10 was authorized by the shareholders
    meeting held on June 2, 1999 and implemented by the Board
    of Directors on December 14, 1999. These options are valid up to
    ten years from the date of grant.

F-31



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |   |                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Stock option plan 11 was authorized by the shareholders
    meeting held on May 30, 2000 and implemented by the Board
    of Directors on March 20, 2001. These options are valid up
    to ten years from the date of grant.

|                                                                         |  |                         |            |           |          |  |            |           |  |            |            |   |  |           |            |   |       |  |            |  |  |  |           |  
|------------------------------------------------------------------------ |  | ----------------------- | ---------- | --------- | -------- |  | ---------- | --------- |  | ---------- | ---------- | - |  | --------- | ---------- | - | ----- |  | ---------- |  |  |  | --------- | -
|                                                                         |  | Number of Stock Options |           
|                                                                         |  |                         |           
|                                                                         |  |                         |            | Plan 2003 |          |  |           
|                                                                         |  | Plan 1999/2001          |            |           |          |  |            |          
|                                                                         |  |                         |            |           |          |  | Remaining  |           |  |           
|                                                                         |  | 1st Part                |            |           | 2nd Part |  |            |           |  | Portion of |            |   | 
|Technip Plans                                                            |  | 1999(a)                 |            |           | 2000(b)  |  |            | Part A(c) |  |            | Part B(c)  |   |  | Part B(d) |            |   | TOTAL | 
|                                                                         |  |                         |            |           |          |  |            |           |  |            |            |   |  |           |            |   |       | 
|Options Granted (Purchase)                                               |  |                         | 315,520    |           |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  | 315,520   |  
|Options Granted as of 12.31.99                                           |  |                         | 315,520    |           |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  | 315,520   |  
|Options Exercised                                                        |  |                         | (2,200     | )         |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  | (2,200    | )
|Options Cancelled                                                        |  |                         | (7,900     | )         |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  | (7,900    | )
|Options Granted (Purchase)                                               |  |                         |           |           |          |  | 139,576    |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  | 139,576   |  
|Options Granted (Subscription)                                           |  |                         |           |           |          |  | 493,028    |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  | 493,028   |  
|                                                                         |  |                         |            |           |          |  |            |           |  |            |            |   |  |           |            |   |       | 
|Options Granted as of 12.31.00                                           |  |                         | 305,420    |           |          |  | 632,604    |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  | 938,024   |  
|                                                                         |  |                         |            |           |          |  |            |           |  |            |            |   |  |           |            |   |       | 
|Options Exercised (Purchase)                                             |  |                         | (20,800    | )         |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  | (20,800   | )
|Options Exercised (Subscription)                                         |  |                         |           |           |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  |          |  
|Options Cancelled (Purchase)                                             |  |                         |           |           |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  |          |  
|Options Cancelled (Subscription)                                         |  |                         |           |           |          |  | (3,200     | )         |  |            |           |   |  |           |           |   |       |  |           |  |  |  | (3,200    | )
|Options Granted (Purchase)                                               |  |                         |           |           |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  |          |  
|Options Granted (Subscription)                                           |  |                         |           |           |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  |          |  
|                                                                         |  |                         |            |           |          |  |            |           |  |            |            |   |  |           |            |   |       | 
|Options Granted as of 12.31.01 (Purchase)                                |  |                         | 284,620    |           |          |  | 139,576    |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  | 424,196   |  
|Options Granted as of 12.31.01 (Subscription)                            |  |                         |           |           |          |  | 489,828    |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  | 489,828   |  
|                                                                         |  |                         |            |           |          |  |            |           |  |            |            |   |  |           |            |   |       | 
|Options Exercised (Purchase)                                             |  |                         | (4,400     | )         |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  | (4,400    | )
|Options Exercised (Subscription)                                         |  |                         |           |           |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  |          |  
|Options Cancelled (Purchase)                                             |  |                         | (8,100     | )         |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  | (8,100    | )
|Options Cancelled (Subscription)                                         |  |                         |           |           |          |  | (13,950    | )         |  |            |           |   |  |           |           |   |       |  |           |  |  |  | (13,950   | )
|Options Granted (Purchase)                                               |  |                         |           |           |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  |          |  
|Options Granted (Subscription)                                           |  |                         |           |           |          |  |           |           |  |            | 234,080    |   |  |           | 462,920    |   |       |  |           |  |  |  | 697,000   |  
|                                                                         |  |                         |            |           |          |  |            |           |  |            |            |   |  |           |            |   |       | 
|Options Granted as of 12.31.02 (Purchase)                                |  |                         | 272,120    |           |          |  | 139,576    |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  | 411,696   |  
|Options Granted as of 12.31.02 (Subscription)                            |  |                         |           |           |          |  | 475,878    |           |  |            | 234,080    |   |  |           | 462,920    |   |       |  |           |  |  |  | 1,172,878 |  
|                                                                         |  |                         |            |           |          |  |            |           |  |            |            |   |  |           |            |   |       | 
|Options Exercised (Purchase)                                             |  |                         |           |           |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  |          |  
|Options Exercised (Subscription)                                         |  |                         |           |           |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  |          |  
|Options Cancelled (Purchase)                                             |  |                         | (14,200    | )         |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  | (14,200   | )
|Options Cancelled (Subscription)                                         |  |                         |           |           |          |  | (27,200    | )         |  |            | (22,090    | ) |  |           | (4,400     | ) |       |  |           |  |  |  | (53,690   | )
|Options Granted (Purchase)                                               |  |                         |           |           |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  |          |  
|Options Granted (Subscription)                                           |  |                         |           |           |          |  |           |           |  |            |           |   |  |           |           |   |       |  | 5,200      |  |  |  | 5,200     |  
|                                                                         |  |                         |            |           |          |  |            |           |  |            |            |   |  |           |            |   |       | 
|Options Granted as of 12.31.03 (Purchase)                                |  |                         | 257,920    |           |          |  | 139,576    |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  | 397,496   |  
|Options Granted as of 12.31.03 (Subscription)                            |  |                         |           |           |          |  | 448,678    |           |  |            | 211,990    |   |  |           | 458,520    |   |       |  | 5,200      |  |  |  | 1,124,388 |  
|                                                                         |  |                         |            |           |          |  |            |           |  |            |            |   |  |           |            |   |       | 
|Options Exercised (Purchase)                                             |  |                         | (231,295   | )         |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  | (231,295  | )
|Options Exercised (Subscription)                                         |  |                         |           |           |          |  |           |           |  |            |           |   |  |           | (900       | ) |       |  |           |  |  |  | (900      | )
|Options Cancelled (Purchase)                                             |  |                         | (26,625    | )         |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  | (26,625   | )
|Options Cancelled (Subscription)                                         |  |                         |           |           |          |  | (34,000    | )         |  |            | (10,380    | ) |  |           | (10,350    | ) |       |  |           |  |  |  | (54,730   | )
|Options Granted (Purchase)                                               |  |                         |           |           |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  |          |  
|Options Granted (Subscription)                                           |  |                         |           |           |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  |          |  
|                                                                         |  |                         |            |           |          |  |            |           |  |            |            |   |  |           |            |   |       | 
|Options Granted as of 12.31.04 (Purchase)                                |  |                         |           |           |          |  | 139,576    |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  | 139,576   |  
|Options Granted as of 12.31.04 (Subscription)                            |  |                         |           |           |          |  | 414,678    |           |  |            | 201,610    |   |  |           | 447,270    |   |       |  | 5,200      |  |  |  | 1,068,758 |  
|                                                                         |  |                         |            |           |          |  |            |           |  |            |            |   |  |           |            |   |       | 
|Technip treasury shares dedicated to the stock purchase options
    plan |  |                         |           |           |          |  |           |           |  |            |           |   |  |           |           |   |       |  |           |  |  |  |          |  
|Maturity date                                                            |  |                         | 04.30.2004 |           |          |  | 12.14.2008 |           |  |            | 12.09.2008 |   |  |           | 12.09.2008 |   |       |  | 05.21.2009 |  |  |  |          |  






|    |                                                 
|--- | ------------------------------------------------
|(a) | Options utilizable after 3 years from 04.30.1999



|    |                                                 
|--- | ------------------------------------------------
|(b) | Options utilizable after 3 years from 12.14.2000

F-32



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                                 
|--- | ------------------------------------------------
|(c) | Options utilizable after 3 years from 12.09.2002



|    |                                                 
|--- | ------------------------------------------------
|(d) | Options utilizable after 3 years from 05.21.2003

|                                                         |  |                    |          |   |          |  |         |         |  |  |         |   |  |       |         |   |  |  |          |  
|-------------------------------------------------------- |  | ------------------ | -------- | - | -------- |  | ------- | ------- |  |  | ------- | - |  | ----- | ------- | - |  |  | -------- | -
|Coflexip Stock option plans                              |  | Plan 9.2           |          |   | Plan 9.3 |  |         | Plan 10 |  |  | Plan 11 |   |  |      
|                                                         |  |                    |          |   |          |  |         |         |  |  |         |   |  |      
|                                                         |  | Options granted in |         
|                                                         |  |                    |         
|                                                         |  | 1997               |          |   | 1998     |  |         | 1999    |  |  | 2001    |   |  | Total |        
|                                                         |  |                    |          |   |          |  |         |         |  |  |         |   |  |       |        
|Number of purchase options granted                       |  |                    |         |   |          |  |        |         |  |  |        |   |  |       | 34,415  |   |  |  | 34,415   |  
|Number of subscription options granted                   |  |                    | 200,000  |   |          |  | 123,400 |         |  |  | 127,386 |   |  |       | 180,000 |   |  |  | 630,786  |  
|Cumulative figures as of December 31, 2003:              |  |                    |          |   |          |  |         |         |  |  |         |   |  |       |         |   |  |  |          |  
|Options exercised (purchase)                             |  |                    |         |   |          |  |        |         |  |  |        |   |  |       |        |   |  |  |         |  
|Options exercised (subscription)                         |  |                    | (127,926 | ) |          |  | (450    | )       |  |  | (16,152 | ) |  |       |        |   |  |  | (144,528 | )
|Options cancelled (purchase)                             |  |                    |         |   |          |  |        |         |  |  |        |   |  |       |        |   |  |  |         |  
|Options cancelled (subscription)                         |  |                    | (33,387  | ) |          |  | (25,200 | )       |  |  | (19,850 | ) |  |       | (36,000 | ) |  |  | (114,437 | )
|Purchase options granted as of
    December 31, 2003     |  |                    |         |   |          |  |        |         |  |  |        |   |  |       | 34,415  |   |  |  | 34,415   |  
|Subscription options granted as of
    December 31, 2003 |  |                    | 38,687   |   |          |  | 97,750  |         |  |  | 91,384  |   |  |       | 144,000 |   |  |  | 371,821  |  
|Options exercised (purchase)                             |  |                    |         |   |          |  |        |         |  |  |        |   |  |       |        |   |  |  |         |  
|Options exercised (subscription)                         |  |                    | (10,833  | ) |          |  | (8,050  | )       |  |  | (20,760 | ) |  |       |        |   |  |  | (39,643  | )
|Options cancelled (purchase)                             |  |                    |         |   |          |  |        |         |  |  |        |   |  |       |        |   |  |  |         |  
|Options cancelled (subscription)                         |  |                    |         |   |          |  | (1,900  | )       |  |  | (1,334  | ) |  |       | (1,000  | ) |  |  | (4,234   | )
|Purchase options granted as of
    December 31, 2004     |  |                    |         |   |          |  |        |         |  |  |        |   |  |       | 34,415  |   |  |  | 34,415   |  
|Subscription options granted as of
    December 31, 2004 |  |                    | 27,854   |   |          |  | 87,800  |         |  |  | 69,290  |   |  |       | 143,000 |   |  |  | 327,944  |  



| |                                    
| | -----------------------------------
| | (e) Distributable Retained Earnings






| |                            
| | ---------------------------
| | (f) Statutory Legal Reserve




F-33



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 21  Accrued Liabilities


Note 1 (p)


|                                   |  |                      |       |  |          |  |       |          |  |  |       | 
|---------------------------------- |  | -------------------- | ----- |  | -------- |  | ----- | -------- |  |  | ----- | 
|                                   |  | 12/31/04             |       |  | 12/31/03 |  |       | 12/31/02 | 
|                                   |  |                      |       |  |          |  |       |          | 
|                                   |  | In Millions of Euros |      
|Current Accrued Contingencies:     |  |                      |       |  |          |  |       |          |  |  |       | 
|Foreseeable Losses on Contracts    |  |                      | 21.6  |  |          |  | 6.4   |          |  |  | 5.5   | 
|Contingencies Related to Contracts |  |                      | 92.9  |  |          |  | 86.3  |          |  |  | 59.5  | 
|Other Contingencies                |  |                      | 16.6  |  |          |  | 41.2  |          |  |  | 43.1  | 
|Provision for Dry-docking          |  |                      | 4.5   |  |          |  | 6.1   |          |  |  | 7.7   | 
|Expenses to Complete Contracts     |  |                      | 84.4  |  |          |  | 74.8  |          |  |  | 74.9  | 
|Restructuring                      |  |                      | 6.0   |  |          |  | 7.3   |          |  |  | 4.2   | 
|Others(*)                          |  |                      | 25.9  |  |          |  | 12.7  |          |  |  | 47.6  | 
|                                   |  |                      |       |  |          |  |       |          | 
|Total Accrued Liabilities          |  |                      | 251.9 |  |          |  | 234.8 |          |  |  | 242.5 | 
|                                   |  |                      |       |  |          |  |       |          | 






|    |                                                                        
|--- | -----------------------------------------------------------------------
|(*) | As of December 31, 2004, these include the following
    contingencies:



| |                                                                                                        
| | -------------------------------------------------------------------------------------------------------
| | Costs following the sale of the head office in 2003:
    3.0 million,                                 
|
| | Equalization on Engineering Re contingencies (reinsurance
    Company for the Group):
    4.6 million.





| |                                                                                              
| | ---------------------------------------------------------------------------------------------
| | CAMC/ TOMI transfer contingencies (provision for assets
    depreciation):
    16.9 million,
| | Exchange loss contingencies:
    10.3 million.                                              



|                                   |  |                     |       |  |          |          |       |           |          |  |           |       |  |         |       |   |          |  |      |   |  |  |       | 
|---------------------------------- |  | ------------------- | ----- |  | -------- | -------- | ----- | --------- | -------- |  | --------- | ----- |  | ------- | ----- | - | -------- |  | ---- | - |  |  | ----- | 
|                                   |  |                     |       |  |          | Decrease |       |           | Decrease |  |           |       |  |        
|                                   |  |                     |       |  |          | Used     |       |           | Unused   |  |           | Other |  |         |      
|                                   |  | 12/31/03            |       |  | Increase |          |       | Provision |          |  | Provision |       |  | changes |       |   | 12/31/04 | 
|                                   |  |                     |       |  |          |          |       |           |          |  |           |       |  |         |       |   |          | 
|                                   |  | In Millions of Euro |      
|Foreseeable Losses on Contracts    |  |                     | 6.4   |  |          |          | 22.3  |           |          |  | (3.8      | )     |  |         | (0.2  | ) |          |  | (3.1 | ) |  |  | 21.6  | 
|Contingencies Related to Contracts |  |                     | 86.3  |  |          |          | 67.2  |           |          |  | (34.9     | )     |  |         | (24.0 | ) |          |  | (1.7 | ) |  |  | 92.9  | 
|Other Contingencies                |  |                     | 41.2  |  |          |          | 12.6  |           |          |  | (36.7     | )     |  |         | (0.5  | ) |          |  |     |   |  |  | 16.6  | 
|Provision for Dry-docking          |  |                     | 6.1   |  |          |          | 2.0   |           |          |  | (3.6      | )     |  |         |      |   |          |  |     |   |  |  | 4.5   | 
|Expenses to Complete Contracts     |  |                     | 74.8  |  |          |          | 51.2  |           |          |  | (34.6     | )     |  |         |      |   |          |  | (7.0 | ) |  |  | 84.4  | 
|Restructuring                      |  |                     | 7.3   |  |          |          | 2.9   |           |          |  | (3.8      | )     |  |         | (0.3  | ) |          |  | (0.1 | ) |  |  | 6.0   | 
|Others                             |  |                     | 12.7  |  |          |          | 17.3  |           |          |  | (5.0      | )     |  |         | (2.4  | ) |          |  | 3.3  |   |  |  | 25.9  | 
|                                   |  |                     |       |  |          |          |       |           |          |  |           |       |  |         |       |   |          | 
|Total                              |  |                     | 234.8 |  |          |          | 175.5 |           |          |  | (122.4    | )     |  |         | (27.4 | ) |          |  | (8.6 | ) |  |  | 251.9 | 
|                                   |  |                     |       |  |          |          |       |           |          |  |           |       |  |         |       |   |          | 





F-34



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 22  Financial Debt




|    |                   
|--- | ------------------
|(a) | Analysis by Nature

|                                     |  |                     |         |  |          |  |         |          |  |  |         | 
|------------------------------------ |  | ------------------- | ------- |  | -------- |  | ------- | -------- |  |  | ------- | 
|                                     |  | 12/31/04            |         |  | 12/31/03 |  |         | 12/31/02 | 
|                                     |  |                     |         |  |          |  |         |          | 
|                                     |  | In Millions of Euro |        
|Convertible Bonds (a)                |  |                     | 632.2   |  |          |  | 715.5   |          |  |  | 765.3   | 
|Bond Loan (b)                        |  |                     | 650.0   |  |          |  |        |          |  |  |        | 
|Bank Borrowings and Credit Lines (c) |  |                     | 81.8    |  |          |  | 184.1   |          |  |  | 187.7   | 
|Short-term Commercial Paper          |  |                     | 150.0   |  |          |  | 205.0   |          |  |  | 276.0   | 
|Bank Overdrafts                      |  |                     | 16.5    |  |          |  | 8.3     |          |  |  | 7.2     | 
|Refundable Advances                  |  |                     | 6.9     |  |          |  | 6.2     |          |  |  | 6.2     | 
|Employee Loans                       |  |                     |        |  |          |  |        |          |  |  |        | 
|Accrued Interest Payable             |  |                     | 24.7    |  |          |  | 7.4     |          |  |  |        | 
|Leasing and Other                    |  |                     |        |  |          |  | 3.0     |          |  |  | 4.7     | 
|                                     |  |                     |         |  |          |  |         |          | 
|Total Financial Debt                 |  |                     | 1,562.1 |  |          |  | 1,129.5 |          |  |  | 1,247.1 | 
|                                     |  |                     |         |  |          |  |         |          | 
|Short-term Financial Debt (d)        |  |                     | 194.4   |  |          |  | 226.3   |          |  |  | 297.0   | 
|Long-term Financial Debt             |  |                     | 1,367.7 |  |          |  | 903.2   |          |  |  | 950.1   | 






|    |                                                                                                                                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | At the end of January 2002, Technip issued a bond loan with an
    option for conversion into new shares and/or exchange for
    existing shares (OCEANE offer) for an initial amount of
    793.5 million.
    The reimbursement date was set on January 1, 2007 for bonds
    not converted into shares at this date.



| |                                                                                                                
| | ---------------------------------------------------------------------------------------------------------------
| | The OCEANE offer, which received the AMF final visa on
    January 22, 2002, has the following characteristics:



| |   |                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------
| |  | Issued at a price of
    170 (number of
    bonds issued: 4,667,647);                                            
|
| |  | The coupon payable on January 1st of each year amounts to
    1% per year of the bonds nominal value;            
|
| |  | The redemption date was set on January 1, 2007 for bonds
    not converted into shares at such date;              
|
| |  | The bond redemption price as of January 1, 2007 is
    190.07 in the
    event of non-conversion or exchange; and
|
| |  | The actuarial rate of yield for the bondholder is 3.25% per year
    in the event of non-conversion or exchange.  



| |                                                                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The bond loan was used to reimburse part of the credit facility
    issued by Technip to finance the purchase of Coflexip shares.                                                                                           
|
| | Technip repurchased 165,653 convertible bonds in 2002 and
    293,141 convertible bonds in 2003 and 489,742 convertible bonds
    in 2004 for the amount of
    161.3 million.                                             
|
| | In accordance with the bond loan-issuing contract of the OCEANE,
    the 948,536 convertible bonds thus redeemed have been cancelled,
    reducing the outstanding amount to
    632.2 million
    as of December 31, 2004.



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | The bond loan has been issued on May 26, 2004 for an amount
    of
    650.0 million
    and a maturity date on May 26, 2011. The interest rate is
    4.625% payable annually.                                                                                                                                                                                                                                                                                                                                  
|   
|(c) | The bank borrowings and credit lines as of December 31,
    2004, mainly include the credit facility for
    U.S.$109 million
    (80.0 million
    at 2004 closing rate) as of December 31, 2004 for an
    authorized total amount of
    850.0 million.
    This credit facility was used by Technip Coflexip USA Holdings
    to finance part of the acquisition of the Aker Maritime ASA
    Deepwater Division in January 2001. This credit facility is
    fully repayable at maturity on April 29, 2009.

F-35



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------
|(d) | The short-term financial debt, which represents
    194.4 million,
    is comprised of the following:



| |   |                                                                                    
| | - | -----------------------------------------------------------------------------------
| |  | Commercial paper for
    150.0 million
    (terms from 1 to 3 months),            
|
| |  | Short-term part of the Group long-term debt, which amounts to
    3.2 million,    
|
| |  | Bank overdrafts and other short-term bank facilities for
    16.5 million,
    and
|
| |  | Accrued interest on convertible bonds and bond loan for
    24.7 million.         



| |                                                                                     
| | ------------------------------------------------------------------------------------
| | (b) Analysis by Type of Interest Rate (After
    Possible Hedging of Interest Rates)

|              |  |                     |         |  |          |  |         | 
|------------- |  | ------------------- | ------- |  | -------- |  | ------- | 
|              |  | 12/31/04            |         |  | 12/31/03 | 
|              |  |                     |         |  |          | 
|              |  | In Millions of Euro |        
|Fixed Rate    |  |                     | 1,402.7 |  |          |  | 821.4   | 
|Variable Rate |  |                     | 159.4   |  |          |  | 308.1   | 
|              |  |                     |         |  |          | 
|Total         |  |                     | 1,562.1 |  |          |  | 1,129.5 | 
|              |  |                     |         |  |          | 












| |                         
| | ------------------------
| | (c) Analysis by Currency

|                                  |  |                     |         |   |          |  |         |          |  |  |         |  
|--------------------------------- |  | ------------------- | ------- | - | -------- |  | ------- | -------- |  |  | ------- | -
|                                  |  | 12/31/04            |         |   | 12/31/03 |  |         | 12/31/02 | 
|                                  |  |                     |         |   |          |  |         |          | 
|                                  |  | In Millions of Euro |        
|Euro                              |  |                     | 1,464.4 |   |          |  | 938.1   |          |  |  | 1,054.8 |  
|US Dollar                         |  |                     | 80.4    |   |          |  | 183.9   |          |  |  | 182.2   |  
|Great Britain Pound               |  |                     |        |   |          |  | 2.4     |          |  |  |        |  
|Others                            |  |                     | 17.3    |   |          |  | 5.1     |          |  |  | 10.1    |  
|                                  |  |                     |         |   |          |  |         |          | 
|Total Financial Debt              |  |                     | 1,562.1 |   |          |  | 1,129.5 |          |  |  | 1,247.1 |  
|Less: Amounts Due Within One Year |  |                     | (194.4  | ) |          |  | (226.3  | )        |  |  | (297.0  | )
|                                  |  |                     |         |   |          |  |         |          | 
|Total Long-term Debt              |  |                     | 1,367.7 |   |          |  | 903.2   |          |  |  | 950.1   |  
|                                  |  |                     |         |   |          |  |         |          | 

F-36



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                        
| | ---------------------------------------
| | (d) Annual Maturities of Long-term Debt

|                          |  |             |         | 
|------------------------- |  | ----------- | ------- | 
|                          |  | 12/31/04    |        
|                          |  |             |        
|                          |  | In Millions |        
|                          |  | of Euro     |        
|2005 (**)                 |  |             | 27.9    | 
|2006 (*)                  |  |             | 632.8   | 
|2007                      |  |             | 0.5     | 
|2008                      |  |             | 0.6     | 
|2009 and after            |  |             | 733.8   | 
|                          |  |             |        
|Total Long-term Debt (**) |  |             | 1,395.6 | 
|                          |  |             |        






|     |                                                                                             
|---- | --------------------------------------------------------------------------------------------
|(*)  | Includes
    632.2 million
    for the redemption of the OCEANE loan as of January 1, 2007.
|    
|(**) | Includes the short-term part of the long term debt for
    27.9 million.                   



| |                                                                                      
| | -------------------------------------------------------------------------------------
| | (e) Debt guaranteed by Suretyships and Security with
    Regard to Immovable Property

|                                                  |  |                     |     |          |           |  |         |       |  |  |         | 
|------------------------------------------------- |  | ------------------- | --- | -------- | --------- |  | ------- | ----- |  |  | ------- | 
|                                                  |  |                     |     | 12/31/04 |           |  |        
|                                                  |  |                     |     | Without  |           |  |        
|                                                  |  | Guarantee           |     |          | Guarantee |  |         | Total | 
|                                                  |  |                     |     |          |           |  |         |       | 
|                                                  |  | In Millions of Euro |    
|Bank Overdrafts, Short-term Facilities and Others |  |                     |    |          |           |  | 16.5    |       |  |  | 16.5    | 
|Commercial Paper                                  |  |                     |    |          |           |  | 150.0   |       |  |  | 150.0   | 
|Short-term Part of Long-term Debt                 |  |                     | 1.5 |          |           |  | 26.4    |       |  |  | 27.9    | 
|                                                  |  |                     |     |          |           |  |         |       | 
|Total Short-term Financial Debt                   |  |                     | 1.5 |          |           |  | 192.9   |       |  |  | 194.4   | 
|                                                  |  |                     |     |          |           |  |         |       | 
|Long-term Financial Debt                          |  |                     |    |          |           |  | 1,367.7 |       |  |  | 1,367.7 | 
|                                                  |  |                     |     |          |           |  |         |       | 
|Total Financial Debts                             |  |                     | 1.5 |          |           |  | 1,560.6 |       |  |  | 1,562.1 | 
|                                                  |  |                     |     |          |           |  |         |       | 




Note 23  Convertible Bond
Redemption Premium


   


F-37



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 24  Other Creditors


|                                      |  |                     |       |  |          |  |       |          |  |  |       | 
|------------------------------------- |  | ------------------- | ----- |  | -------- |  | ----- | -------- |  |  | ----- | 
|                                      |  | 12/31/04            |       |  | 12/31/03 |  |       | 12/31/02 | 
|                                      |  |                     |       |  |          |  |       |          | 
|                                      |  | In Millions of Euro |      
|Payroll Costs                         |  |                     | 108.1 |  |          |  | 70.4  |          |  |  | 62.0  | 
|Social Security Charges               |  |                     | 30.1  |  |          |  | 38.0  |          |  |  | 20.6  | 
|Income and Value Added Taxes          |  |                     | 179.1 |  |          |  | 125.6 |          |  |  | 150.5 | 
|Liabilities Deferred Income           |  |                     | 144.8 |  |          |  | 162.5 |          |  |  | 126.2 | 
|Deferred Income                       |  |                     | 8.6   |  |          |  | 13.2  |          |  |  | 7.1   | 
|Debts on Fixed Assets                 |  |                     | 16.7  |  |          |  | 11.5  |          |  |  | 15.7  | 
|Ongoing Project Accruals              |  |                     | 119.0 |  |          |  | 124.5 |          |  |  | 78.6  | 
|Fee Accruals                          |  |                     | 3.5   |  |          |  | 2.8   |          |  |  | 1.9   | 
|Current Accounts on Ongoing Contracts |  |                     | 22.9  |  |          |  | 16.0  |          |  |  | 28.9  | 
|Debt Covered by a Guarantee           |  |                     |      |  |          |  |      |          |  |  | 68.9  | 
|Subsidies                             |  |                     | 13.6  |  |          |  | 6.6   |          |  |  | 7.0   | 
|Other                                 |  |                     | 161.8 |  |          |  | 120.8 |          |  |  | 188.7 | 
|                                      |  |                     |       |  |          |  |       |          | 
|Other Creditors                       |  |                     | 808.2 |  |          |  | 691.9 |          |  |  | 756.1 | 
|                                      |  |                     |       |  |          |  |       |          | 



|          |                           
|--------- | --------------------------
|Note 25  | Related Party Transactions



Note 26  Off-balance Sheet Commitments and
Contingencies


Note 22


|                                  |  |       |         |           |          |  |         |         |  |           |            |  |  |  |       |            
|--------------------------------- |  | ----- | ------- | --------- | -------- |  | ------- | ------- |  | --------- | ---------- |  |  |  | ----- | -----------
|                                  |  |       |         | Payments  |         
|                                  |  |       |         |           |         
|                                  |  |       |         | Less than |          |  | 1 to    |         |  | More than |           
|Contractual Commitments           |  | Total |         |           | One Year |  |         | 5 Years |  |           | Five Years | 
|                                  |  |       |         |           |          |  |         |         |  |           |            | 
|Capital Leases                    |  |       |        |           |          |  |        |         |  |           |           |  |  |  |      | (a)        
|Operating Leases                  |  |       | 369.4   |           |          |  | 41.7    |         |  |           | 149.3      |  |  |  | 178.4 | (a)        
|Foreign Exchange Rate Instruments |  |       | 1,287.1 |           |          |  | 1,119.9 |         |  |           | 167.2      |  |  |  |      | Note  27(b)
|Interest Rate Instruments         |  |       | 80.0    |           |          |  |        |         |  |           | 80.0       |  |  |  |      | Note  27(c)
|                                  |  |       |         |           |          |  |         |         |  |           |            | 
|Total                             |  |       | 1,736.5 |           |          |  | 1,161.6 |         |  |           | 396.5      |  |  |  | 178.4 |            
|                                  |  |       |         |           |          |  |         |         |  |           |            | 

|                           |  |       |          |                                 |          |  |         |       |  |           |            |  |  |  |         |    
|-------------------------- |  | ----- | -------- | ------------------------------- | -------- |  | ------- | ----- |  | --------- | ---------- |  |  |  | ------- | ---
|                           |  |       |          | Amount of Commitments by Period |         
|                           |  |       |          |                                 |         
|                           |  |       |          | Less than                       |          |  | 1 to 5  |       |  | More than |           
|Others Commitments         |  | Total |          |                                 | One Year |  |         | Years |  |           | Five Years | 
|                           |  |       |          |                                 |          |  |         |       |  |           |            | 
|Parent Company Guarantees  |  |       | 13,789.9 |                                 |          |  | 3,721.3 |       |  |           | 9,216.4    |  |  |  | 852.2   |    
|Others Commitments Given   |  |       | 1,418.6  |                                 |          |  | 146.8   |       |  |           | 1,079.5    |  |  |  | 192.3   |    
|                           |  |       |          |                                 |          |  |         |       |  |           |            | 
|Total Commitments Given    |  |       | 15,208.5 |                                 |          |  | 3,868.1 |       |  |           | 10,295.9   |  |  |  | 1,044.5 | (b)
|                           |  |       |          |                                 |          |  |         |       |  |           |            | 
|Total Commitments Received |  |       | 539.4    |                                 |          |  | 208.5   |       |  |           | 330.5      |  |  |  | 0.4     | (b)
|                           |  |       |          |                                 |          |  |         |       |  |           |            | 



| |                                        
| | ---------------------------------------
| | (a) Capital Leases and Operating Leases



F-38



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


  




|                                                        |  |             |       | 
|------------------------------------------------------- |  | ----------- | ----- | 
|                                                        |  | Operating   |      
|                                                        |  | Lease       |      
|                                                        |  |             |      
|                                                        |  | In Millions |      
|                                                        |  | of Euro     |      
|For the Year Ended December 31,                         |  |             |       | 
|2005                                                    |  |             | 41.7  | 
|2006                                                    |  |             | 41.9  | 
|2007                                                    |  |             | 36.4  | 
|2008                                                    |  |             | 36.3  | 
|2009                                                    |  |             | 34.7  | 
|2010 and thereafter                                     |  |             | 178.4 | 
|                                                        |  |             |      
|Total                                                   |  |             | 369.4 | 
|Less Interest                                           |  |             |      | 
|                                                        |  |             |      
|Total Current Net Value of Capital and Operating Leases |  |             | 369.4 | 
|                                                        |  |             |      










| |                
| | ---------------
| | (b) Commitments



|                          |  |                     |          |  |          |  |          |          |  |  |          | 
|------------------------- |  | ------------------- | -------- |  | -------- |  | -------- | -------- |  |  | -------- | 
|                          |  | 12/31/04            |          |  | 12/31/03 |  |          | 12/31/02 | 
|                          |  |                     |          |  |          |  |          |          | 
|                          |  | In Millions of Euro |         
|Parent Company Guarantees |  |                     | 13,789.9 |  |          |  | 10,729.4 |          |  |  | 8,807.6  | 
|Other Commitments Given   |  |                     | 1,418.6  |  |          |  | 1,609.7  |          |  |  | 1,696.2  | 
|                          |  |                     |          |  |          |  |          |          | 
|Total Commitments Given   |  |                     | 15,208.5 |  |          |  | 12,339.1 |          |  |  | 10,503.8 | 
|                          |  |                     |          |  |          |  |          |          | 
|Commitments Received      |  |                     | 539.4    |  |          |  | 592.5    |          |  |  | 445.3    | 





F-39



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |                  
| | -----------------
| | (c) Contingencies

Exceptional Events and Litigation:




Note 21






| |    
| | ---
| | ITP





| |       
| | ------
| | Seamec





i.e.  i.e. 


F-40



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




(d) Retirement
indemnities and related commitments




|                                                                        |  |                       |  |              |          |  |       |           |              |  |          |  |  |  |       |  
|----------------------------------------------------------------------- |  | --------------------- |  | ------------ | -------- |  | ----- | --------- | ------------ |  | -------- |  |  |  | ----- | -
|                                                                        |  | 2003                  |  |              | 2004     | 
|                                                                        |  |                       |  |              |          | 
|                                                                        |  |                       |  | No Provision |          |  |       |           | No Provision | 
|Benefit obligations                                                     |  | Provision             |  |              | Recorded |  |       | Provision |              |  | Recorded | 
|                                                                        |  |                       |  |              |          |  |       |           |              |  |          | 
|                                                                        |  | (in Millions of Euro) | 
|Actuarial Debt                                                          |  |                       |  |              |          |  | 182.3 |           |              |  |          |  |  |  | 172.7 |  
|Market Value of Hedging Assets                                          |  |                       |  |              |          |  | (58.3 | )         |              |  |          |  |  |  | (68.8 | )
|Financial Hedging                                                       |  |                       |  |              |          |  | 124.0 |           |              |  |          |  |  |  | 103.9 |  
|Unrecognized Assets                                                     |  |                       |  |              |          |  | (34.7 | )         |              |  |          |  |  |  | (33.1 | )
|Net Provision (Consolidated Financial Statements as of
    December 31) |  |                       |  |              |          |  | 89.3  |           |              |  |          |  |  |  | 70.8  |  





Germany:






| |   |                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Two retirement plans that provide an allowance payable from
    65 years of age;                                                                                          
|
| |  | A differed pay plan;                                                                                                                                                      
|
| |  | A early retirement plan; and                                                                                                                                              
|
| |  | For employees with over 25, 40 and 45 years length of
    service the company offers a jubilee plan which provides a basic
    allocation of one to three months salary.




Brazil:





United Arab Emirates:





F-41



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


France:






| |   |                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------
| |  | Retirement indemnities that are determined on the basis of the
    wage at retirement date and professional years spent in the
    company;





| |   |                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A jubilee plan which provide a basic allocation payable after
    20, 30, 35 and 40 professional years in all companies (with a
    minimum of professional years within Technip).




Italy:






| |   |                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------
| |  | Retirement indemnities that are determined on the basis of the
    wage at retirement date and professional years spent in the
    company;
|
| |  | An early retirement plan which provides a basic allocation. That
    plan will be closed as of December 31, 2005.                          




Norway:







The Netherlands:





United Kingdom:









F-42



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                             |  |            |         |            |            |  |       |          |       |  |            |  |  |          |       |  |  |  |         |  
|-------------------------------------------- |  | ---------- | ------- | ---------- | ---------- |  | ----- | -------- | ----- |  | ---------- |  |  | -------- | ----- |  |  |  | ------- | -
|                                             |  |            |         | Post       |            |  |       |          |       |  |           
|                                             |  |            |         | Retirement |            |  |       |          | Early |  |            | 
|                                             |  | Retirement |         |            | Healthcare |  |       | Jubilee  |       |  | Retirement |  |  |         
|In K                                        |  | Plans      |         |            | Benefit    |  |       | Plans    |       |  | Plans      |  |  | Total    |      
|                                             |  |            |         |            |            |  |       |          |       |  |            |  |  |          |      
|                                             |  | 12/31/04   |         |            | 12/31/04   |  |       | 12/31/04 |       |  | 12/31/04   |  |  | 12/31/04 |      
|Actuarial Value of the Financed Obligation   |  |            | 114,412 |            |            |  | 0     |          |       |  | 0          |  |  |          | 0     |  |  |  | 114,412 |  
|Fair Value of Plan Assets                    |  |            | (68,840 | )          |            |  | 0     |          |       |  | 0          |  |  |          | 0     |  |  |  | (68,840 | )
|                                             |  |            |         |            |            |  |       |          |       |  |            |  |  |          |      
|                                             |  |            | 45,572  |            |            |  | 0     |          |       |  | 0          |  |  |          | 0     |  |  |  | 45,572  |  
|Actuarial Value of the Unfinanced Obligation |  |            | 49,531  |            |            |  | 1,126 |          |       |  | 3,261      |  |  |          | 4,374 |  |  |  | 58,292  |  
|Unrecognized Actuarial Gains (losses)        |  |            | 612     |            |            |  | 0     |          |       |  | 0          |  |  |          | 0     |  |  |  | 612     |  
|Unrecognized Service Costs                   |  |            | 2,777   |            |            |  | 0     |          |       |  | 0          |  |  |          | 0     |  |  |  | 2,777   |  
|                                             |  |            |         |            |            |  |       |          |       |  |            |  |  |          |      
|Net Liabilities                              |  |            | 98,492  |            |            |  | 1,126 |          |       |  | 3,261      |  |  |          | 4,374 |  |  |  | 107,253 |  
|                                             |  |            |         |            |            |  |       |          |       |  |            |  |  |          |      



|                                              |  |            |        |               |              |  |    |          |       |  |            |  |  |          |     |  |  |  |        |  
|--------------------------------------------- |  | ---------- | ------ | ------------- | ------------ |  | -- | -------- | ----- |  | ---------- |  |  | -------- | --- |  |  |  | ------ | -
|                                              |  |            |        | Medical Costs |              |  |    |          | Early |  |            | 
|                                              |  | Retirement |        |               | for Retired  |  |    | Jubilee  |       |  | Retirement |  |  |         
|In K                                         |  | Plans      |        |               | People Plans |  |    | Plans    |       |  | Plans      |  |  | Total    |    
|                                              |  |            |        |               |              |  |    |          |       |  |            |  |  |          |    
|                                              |  | 12/31/04   |        |               | 12/31/04     |  |    | 12/31/04 |       |  | 12/31/04   |  |  | 12/31/04 |    
|Service cost                                  |  |            | 7,799  |               |              |  | 0  |          |       |  | 245        |  |  |          | 83  |  |  |  | 8,127  |  
|Interest Cost                                 |  |            | 7,652  |               |              |  | 50 |          |       |  | 165        |  |  |          | 218 |  |  |  | 8,085  |  
|Expected Return on Assets                     |  |            | (3,492 | )             |              |  | 0  |          |       |  | 0          |  |  |          | 0   |  |  |  | (3,492 | )
|Amortization of Actuarial (Gains) Losses      |  |            | 0      |               |              |  | 0  |          |       |  | 41         |  |  |          | 257 |  |  |  | 298    |  
|Amortization of Non-vested Prior Service Cost |  |            | (102   | )             |              |  | 0  |          |       |  | 0          |  |  |          | 0   |  |  |  | (102   | )
|Curtailment/ Settlement                       |  |            | 0      |               |              |  | 0  |          |       |  | 0          |  |  |          | 0   |  |  |  | 0      |  
|Benefit Expense                               |  |            | 11,856 |               |              |  | 50 |          |       |  | 451        |  |  |          | 558 |  |  |  | 12,916 |  
|Annual Cost                                   |  |            | 4,286  |               |              |  | 0  |          |       |  | 0          |  |  |          | 0   |  |  |  | 4,286  |  



|                                                            |  |      |      |  
|----------------------------------------------------------- |  | ---- | ---- | -
|                                                            |  | 2004 |     
|                                                            |  |      |     
|Discount Rate                                               |  |      | 4.58 | %
|Expected Return on Plan Assets                              |  |      | 5.45 | %
|Future Increase in Wages (including Inflation)              |  |      | 3.21 | %
|Future Increase in Retirement Pension (including Inflation) |  |      | 1.68 | %
|Annual Increase of Healthcare Costs                         |  |      | 3.00 | %

Note 27  Market Related Exposure and
Financial Instruments




| |                   
| | ------------------
| | (a) Liquidity Risk



| |    |                                                                                                                                                                    
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | A- | Technip group financing is governed by the Group policy
    implemented by the Finances and Control management department.                                         
|
| | B- | Cash management is centralized at the head office and
    coordinated through the financial centers located throughout the
    Groups main operating subsidiaries.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The SNC Technip Eurocash (general partnership)
    entered into cash pooling agreements with the Groups main
    subsidiaries, in respect with local legislation and rules, in
    order to pool the surplus cash, to meet their needs by pooling
    the Groups financial resources except when economic and
    financial conditions lead to priority being given to a local
    debt. Technip Eurocashs management committee is

F-43



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------
| | made up of representatives of Group entities that are members of
    the SNC. This committee meets several times per year.



| |    |                                                                                                                                                                                                                                                                                       
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | C- | At the end of January 2002, Technip took advantage of beneficial
    market conditions to issue a bond loan with an option for
    conversion into new shares and/or exchange for existing shares
    (the OCEANE offer) for a nominal amount of
    793.5 million
    (see Note 22).



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Technip has extended the average maturity of its debt of January
    2002, by replacing a debt payable semiannually from
    June 30, 2002 to December 31, 2006 by a redeemable
    bond issue at a single date as of January 1, 2007, in the
    absence of conversion in consideration for a reduced financial
    cost in cash. The redemptions of convertible bonds in 2002 and
    in 2003 were mainly refinanced by a bank credit (expiry
    December 30, 2007). In 2004, the cash position and the
    partial use of the bond loan, as mentioned in paragraph D below,
    allowed Technip to reimburse in advance this bank credit and to
    proceed to other redemptions.



| |    |                                                                                                                                                                                                                                     
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | D- | In May 2004, Technip, thanks to new opportune market conditions
    and terms, has issued a bond loan for
    650.0 million
    (characteristics are describe in Note 22) and has
    also extend the average maturity of its debt.
|
| | E- | As of December 31, 2004, the Group has various non-used
    financing sources that allow it to finance its needs:                                                                                                                   



| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1/ | The balance not used by Technip and its eligible subsidiaries
    amounts to
    770.0 million
    from a new bank credit with an authorized amount of
    850.0 million.
    This credit, sign on April 29, 2004 is to be reimbursed at
    a single date as of April 29, 2009. This credit facility is
    not guaranteed by security with regard to immovable property
    provided on the Groups assets. It contains the usual
    commitments from Technip and from the main entities eligible as
    borrowers apart from all financial ratios.



| |                                                     
| | ----------------------------------------------------
| | This new credit replaces as of second quarter, 2004:



| |   |                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A
    387.0 million
    and U.S.$42 million
    (30.8 million
    at 2004 closing rate) credit line which was previously repayable
    in several half-yearly payments until December 31, 2006.                                                                                                                                                                                                          
|
| |  | The balance as of April 29, 2004, not used by Technip and
    its eligible subsidiaries amounts to U.S.$209 million
    (153.3 million
    at 2004 closing rate) from the bank credit of a total amount of
    U.S.$350 million taken out for financing the purchase of
    the Aker Maritime ASA Deepwater Division by Coflexip, and which
    is reimbursable at the ended maturity date, June 25, 2006.
|
| |  | Multi-currencies credit line for
    330.0 million
    grant by a consortium of banks to Technip Eurocash with a 2004
    maturity date (the new credit bank has a
    350.0 million
    bracket which may be used according a short notice).                                                                                                                                                            



| |    |                                                                                                                                                                                                                                                                                                                                         
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2/ | Two bank credits amounting to
    125.0 million
    each also usable in U.S. Dollar or Euro granted to Technip.
    Their maturity date is December 31, 2008, after a part
    deduction of
    25.0 million
    as of December 31, 2007. The commitments are the same as
    those mentioned for the previous credit line of Technip.
|
| | 3/ | Various non-used credit facilities amounting to
    8.0 million.                                                                                                                                                                                                                                                                       



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The credit agreements with respect to these various financing
    arrangements do not include an early payment clause in case of
    deterioration of the borrowers rating. In case of use,
    they allow variable interest rate. As of December 31, 2004,
    bank credit lines confirmed and available for the Group amount
    to
    1,028.0 million
    of which
    1,020.0 million
    are available beyond December 31, 2005. The outstanding
    commercial papers issued at the same date amount to
    150.0 million
    for terms of

F-44



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                                                                                                                 
| | --------------------------------------------------------------------------------------------------------------------------------
| | 1 to 3 months within the scope of the program declared to
    the Banque de France for a maximum amount of
    600.0 million.



| |    |                                                                                                                                                                                                                                   
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | F- | The long-term debt payment schedule is provided in
    Note 22. The amounts due with respect to 2005 and
    2006 amounts respectively to
    27.9 million
    and to
    632.8 million.
    The 2005 maturities include mainly:



| |   |                                                                                             
| | - | --------------------------------------------------------------------------------------------
| |  | The accrued interest on OCEANES and the bond loan for
    24.7 million;
    and            
|
| |  | 3.2 million
    for the part of the long-term debt payable before a year for the
    Group.



 




|    |              
|--- | -------------
|(b) | Currency Risk

Note 1(e)




|                                                                       |  |                      |       |  |          |  |         |          |  |         |       |   |         |       |         |         |       |  |         |  |  |  |         | 
|---------------------------------------------------------------------- |  | -------------------- | ----- |  | -------- |  | ------- | -------- |  | ------- | ----- | - | ------- | ----- | ------- | ------- | ----- |  | ------- |  |  |  | ------- | 
|                                                                       |  | 12/31/04             |       |  | 12/31/03 |  |         | 12/31/02 | 
|                                                                       |  |                      |       |  |          |  |         |          | 
|                                                                       |  | Maturity             |       |  |          |  |         |          | 
|                                                                       |  | 2006                 |       |  |          |  | Fair    |          |  | Nominal |       |   | Nominal |       |         | Nominal |      
|                                                                       |  | and after            |       |  | 2005     |  |         | value    |  |         | value |   |         | value |         |         | value | 
|                                                                       |  |                      |       |  |          |  |         |          |  |         |       |   |         |       |         |         |       | 
|                                                                       |  | In Millions of Euros |      
|Buy Currency, Sell National Currency (Forwards and Swaps)              |  |                      | 12.0  |  |          |  | 221.9   |          |  |         | (20.8 | ) |         |       | 233.9   |         |       |  | 504.4   |  |  |  | 545.9   | 
|Sell Currency, Buy National Currency (Forwards, Swaps and
    Options) |  |                      | 64.8  |  |          |  | 645.4   |          |  |         | 76.9  |   |         |       | 710.2   |         |       |  | 1,404.3 |  |  |  | 1,182.8 | 
|Sell/Buy Foreign Currencies                                            |  |                      | 90.4  |  |          |  | 252.6   |          |  |         | 26.1  |   |         |       | 343.0   |         |       |  | 299.0   |  |  |  | 171.2   | 
|Total                                                                  |  |                      | 167.2 |  |          |  | 1,119.9 |          |  |         | 82.2  |   |         |       | 1,287.1 |         |       |  | 2,207.7 |  |  |  | 1,899.9 | 

F-45



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                   
|--- | ------------------
|(c) | Interest Rate Risk



|                     |  |                     |          |   |        |  |       |        |  |  |       |  |  |  |         | 
|-------------------- |  | ------------------- | -------- | - | ------ |  | ----- | ------ |  |  | ----- |  |  |  | ------- | 
|                     |  | Technip Group       |         
|                     |  |                     |         
|                     |  | Call Money          |          |   |       
|                     |  | Rate within 1       |          |   |       
|                     |  | Year and            |          |   | 1 to 5 |  |       | Over 5 |  |  |      
|                     |  | Variable Rate       |          |   | years  |  |       | years  |  |  | Total | 
|                     |  |                     |          |   |        |  |       |        |  |  |       | 
|                     |  | In Millions of Euro |         
|Financial Debt (a)   |  |                     | 274.4    |   |        |  | 634.2 |        |  |  | 653.5 |  |  |  | 1,562.1 | 
|Financial Assets (b) |  |                     | 1,434.0  |   |        |  |      |        |  |  |      |  |  |  | 1,434.0 | 
|Net (c)=(a)-(b)      |  |                     | (1,159.6 | ) |        |  | 634.2 |        |  |  | 653.5 |  |  |  | 128.1   | 
|Commitments*(d)      |  |                     | (80.0    | ) |        |  | 80.0  |        |  |  |      |  |  |  |        | 
|Net (c)+(d)          |  |                     | (1,239.6 | ) |        |  | 714.2 |        |  |  | 653.5 |  |  |  | 128.1   | 






|  |                                                                                                               
|- | --------------------------------------------------------------------------------------------------------------
|* | Operations that modify the nature of interest rate and/ or the
    schedule of maturity of the financial debt.











 












|    |            
|--- | -----------
|(d) | Credit Risk





F-46



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 28  Subsequent Events




|    |                                
|--- | -------------------------------
|(a) | Redemption of Convertible Bonds

 


 


 




|          |                       
|--------- | ----------------------
|Note 29  | Scope of Consolidation

List of the Main Consolidated Subsidiaries as of
December 31, 2004


|                                     |  |                      |  |               
|------------------------------------ |  | -------------------- |  | --------------
|                                     |  |                      |  | 12/31/2004    
|Consolidated Companies Technip       |  | Country              |  | % Control     
|                                     |  |                      |  |               
|Technip                              |  | France               |  | Parent company
|Technip France                       |  | France               |  | 100%          
|Technip Eurocash                     |  | France               |  | 100%          
|TPL  Tecnologie Progetti Lavori SpA |  | Italy                |  | 100%          
|Technip Italy                        |  | Italy                |  | 100%          
|TPG (UK) Ltd                         |  | UK                   |  | 100%          
|Technip TPS                          |  | France               |  | 100%          
|Technip Iberia                       |  | Spain                |  | 100%          
|S.C.I. CB3 Défense                   |  | France               |  | 100%          
|Technip Overseas                     |  | Panama               |  | 100%          
|Technip Benelux NV                   |  | Belgium              |  | 100%          
|Technip Capital                      |  | Belgium              |  | 100%          
|ABAY Engineering                     |  | Belgium              |  | 100%          
|Technip Far East                     |  | Malaysia             |  | 100%          
|Technip International AG             |  | Switzerland          |  | 100%          
|TTIL SNC                             |  | France               |  | 100%          
|Technip KT India                     |  | India                |  | 100%          
|Technip Upstream Houston Inc         |  | USA                  |  | 100%          
|Technip USA Corp                     |  | USA                  |  | 100%          
|Technip Benelux BV                   |  | The Netherlands      |  | 100%          
|Technip Americas Corp                |  | USA                  |  | 100%          
|Technip Holding Benelux BV           |  | The Netherlands      |  | 100%          
|Technip Germany                      |  | Germany              |  | 100%          
|Technip Seiffert (ex MSE)            |  | Germany              |  | 100%          
|Technip Singapour                    |  | Singapore            |  | 100%          
|Technip Middle East FZCO             |  | United Arab Emirates |  | 100%          
|Technip Engenharia S/A               |  | Brazil               |  | 100%          
|Citex                                |  | France               |  | 100%          
|Eurobatch                            |  | France               |  | 100%          
|SNPE Ingénierie Défense              |  | France               |  | 100%          

F-47



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                   |  |                      |  |           
|-------------------------------------------------- |  | -------------------- |  | ----------
|                                                   |  |                      |  | 12/31/2004
|Consolidated Companies Technip                     |  | Country              |  | % Control 
|                                                   |  |                      |  |           
|Seal Engineering                                   |  | France               |  | 100%      
|Technipnet BV                                      |  | The Netherlands      |  | 100%      
|Technip Nouvelle-Calédonie                         |  | New Caledonia        |  | 100%      
|Engineering Re                                     |  | Switzerland          |  | 100%      
|EPC-Business BV                                    |  | The Netherlands      |  | 100%      
|Technip Bolivar, C.A.                              |  | Venezuela            |  | 100%      
|Technip Oil & Gas BV                               |  | The Netherlands      |  | 100%      
|Technip-Coflexip Engineering Consultant (Shanghaï) |  | China                |  | 100%      
|Technip Portugal                                   |  | Portugal             |  | 93.75%    
|PT Technip Indonesia                               |  | Indonesia            |  | 90%       
|Technip Biopharm Inc                               |  | USA                  |  | 85%       
|Technip CIS                                        |  | Russia               |  | 70%       
|Technip Tianchen                                   |  | China                |  | 60%       
|TSS Dalia SNC                                      |  | France               |  | 55%       
|Dalia Floater Angola SNC                           |  | France               |  | 55%       
|Bechtel Technip Goro, LLC                          |  | USA                  |  | 50%       
|CTME FZCO                                          |  | United Arab Emirates |  | 50%       
|SPF-TKP Omifpro SNC/SP-TKP Fertilizer SrL          |  | France/Italy         |  | 50%       
|Technip India                                      |  | India                |  | 50%       
|UCI FZCO                                           |  | United Arab Emirates |  | 50%       
|PROTEK Germany GmbH                                |  | Germany              |  | 50%       
|Technip Engineering (B)                            |  | Brunei               |  | 49%       
|Technip Engineering (Thaïland) Co. Ltd             |  | Thaïland             |  | 49%       
|Tipiel                                             |  | Colombia             |  | 44.10%    
|TPG(M)                                             |  | Malaysia             |  | 44.10%    
|Technip Angola                                     |  | Angola               |  | 60%       
|Technip Saudi Arabia                               |  | Saudi Arabia         |  | 40%       
|Consorcio Contrina SNC                             |  | France               |  | 34.40%    
|Saibos Akogep SNC                                  |  | France               |  | 30%       
|TSKJ                                               |  | Portugal             |  | 25%       
|Technip KTI SpA                                    |  | Italy                |  | 25%       
|FSTP Brasil Ltda                                   |  | Brazil               |  | 25%       
|FSTP Pte Ltd                                       |  | Singapore            |  | 25%       
|Nargan                                             |  | Iran                 |  | 20%       
|DITECH                                             |  | Venezuela            |  | 20%       
|Technip Offshore International                     |  | France               |  | 100%      
|Flexi France                                       |  | France               |  | 100%      
|Technip Offshore (Nigeria) Ltd                     |  | Nigeria              |  | 100%      
|Middle East Projects International (Technip MEPI)  |  | France               |  | 100%      
|Technip Marine                                     |  | France               |  | 100%      
|Angoflex                                           |  | France               |  | 100%      
|Angoflex limitada                                  |  | Angola               |  | 70%       
|Coflexip Développement                             |  | France               |  | 100%      
|Technip Offshore N.V.                              |  | The Netherlands      |  | 100%      
|Technip Offshore Contracting B.V                   |  | The Netherlands      |  | 100%      
|Technip Offshore Holdings Ltd                      |  | United Kingdom       |  | 100%      

F-48



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                           |  |                          |  |           
|---------------------------------------------------------- |  | ------------------------ |  | ----------
|                                                           |  |                          |  | 12/31/2004
|Consolidated Companies Technip                             |  | Country                  |  | % Control 
|                                                           |  |                          |  |           
|Technip Offshore UK Ltd.                                   |  | United Kingdom           |  | 100%      
|Technip Ships One Ltd.                                     |  | United Kingdom           |  | 100%      
|Technip Ships Three Ltd.                                   |  | United Kingdom           |  | 100%      
|Technip-Coflexip U.K. Holdings Ltd                         |  | United Kingdom           |  | 100%      
|Coflexip U.K. Ltd.                                         |  | United Kingdom           |  | 100%      
|Perry Slingsby Systems Ltd.                                |  | United Kingdom           |  | 100%      
|DUCO Ltd.                                                  |  | United Kingdom           |  | 100%      
|Genesis Oil and Gas Consultants Ltd                        |  | United Kingdom           |  | 100%      
|Technip Offshore Norge AS                                  |  | Norway                   |  | 100%      
|Technip-Coflexip Norge AS                                  |  | Norway                   |  | 100%      
|Coflexip Stena Offshore AS                                 |  | Norway                   |  | 100%      
|Technip-Coflexip U.S.A. Holdings Inc.                      |  | USA                      |  | 100%      
|R.J. Brown Deepwater, Inc                                  |  | USA                      |  | 100%      
|DUCO Inc.                                                  |  | USA                      |  | 100%      
|Coflexip Maritime Inc                                      |  | USA                      |  | 100%      
|Technip Offshore Inc                                       |  | USA                      |  | 100%      
|Technip Offshore Mooring Inc                               |  | USA                      |  | 100%      
|Deep Oil Technology Inc                                    |  | USA                      |  | 50%       
|Genesis Oil and Gas Consultants Inc                        |  | USA                      |  | 100%      
|Gulf Marine Fabricators                                    |  | USA                      |  | 100%      
|Spars International Inc                                    |  | USA                      |  | 50%       
|Perry Slingsby Systems Inc.                                |  | USA                      |  | 100%      
|Technip Offshore Canada Limited                            |  | Canada                   |  | 100%      
|Stena Offshore Jersey Ltd.                                 |  | Jersey                   |  | 100%      
|Coflexip Stena Offshore Mauritius Ltd.                     |  | Mauritius                |  | 100%      
|FlexService N.V.                                           |  | The Netherlands Antilles |  | 100%      
|Sunflex Offshore N.V.                                      |  | The Netherlands Antilles |  | 100%      
|Brasflex Tubos Flexiveis Ltda                              |  | Brazil                   |  | 100%      
|Brasflex Overseas Inc                                      |  | Virgin Islands           |  | 100%      
|Sea Oil Marine Services Inc                                |  | Cayman Islands           |  | 100%      
|Flexibras Tubos Flexiveis Ltda                             |  | Brazil                   |  | 100%      
|Technip Oceania Pty Ltd                                    |  | Australia                |  | 100%      
|Technip CSO Australia Pty Ltd.                             |  | Australia                |  | 100%      
|Technip CSO Oceania Pty Ltd                                |  | Australia                |  | 100%      
|Technip CSO Oil and Gas Pty Ltd                            |  | Australia                |  | 100%      
|Genesis Oil and Gas Consultants Pty Ltd                    |  | Australia                |  | 100%      
|South East Asia Marine Engineering &
    Construction Ltd. |  | India                    |  | 78,2%     
|Technip Offshore Finland Oy                                |  | Finland                  |  | 100%      
|PI Rauma Oy                                                |  | Finland                  |  | 50%       
|Coflexip Singapore Pte                                     |  | Singapore                |  | 100%      

Note 30  Summary of differences between
accounting principles followed by the Company and
U.S. GAAP


Note 1


F-49



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 31


(a) Contract costs
accounting


Note 1(k)




(b) Contract bid
costs






(c) Foreign currency
transactions on long-term contracts and derivative
instruments


Note 1(r)


Note 1(f)












F-50



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(d) Pension
Obligations






(e) Stock-based
compensation




Note 32(e)


(f) Acquisition of
KTI/MDEU











(g) Territoriality
contingencies


Note 1(p)






F-51



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##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(h) Employee
subscription to capital






(i) Consolidation
method






Note 32(a)




(j) Redemption premium
of the convertible bonds




(k) Coflexip gain on
disposition of Cal Dive securities


Note 2.




(l) Research and
development expenses


Note 1(s)


F-52



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




(m) Rent expenses of
Adria (Technip headquarters)








(n) Goodwill
amortization




  




Note 1(g) Note 2






|                    |  |            |         |  |                |  |      |              |  |              |        |   |                |             |         |  |              |              |      |      |                |  |             |   |  |              |         |  |      |  |      |   |  |  |        |   |  |  |         | 
|------------------- |  | ---------- | ------- |  | -------------- |  | ---- | ------------ |  | ------------ | ------ | - | -------------- | ----------- | ------- |  | ------------ | ------------ | ---- | ---- | -------------- |  | ----------- | - |  | ------------ | ------- |  | ---- |  | ---- | - |  |  | ------ | - |  |  | ------- | 
|                    |  | January 1, |         |  | Acquisitions & |  |      |              |  | December 31, |        |   | Acquisitions & |             |         |  |              | December 31, |      |      | Acquisitions & |  |             |   |  | December 31, |        
|                    |  | 2002       |         |  | Adjustments    |  |      | Amortization |  |              | 2002   |   |                | Adjustments |         |  | Amortization |              |      | 2003 |                |  | Adjustments |   |  | Amortization |         |  | 2004 | 
|                    |  |            |         |  |                |  |      |              |  |              |        |   |                |             |         |  |              |              |      |      |                |  |             |   |  |              |         |  |      | 
|OFFSHORE            |  |            | 2,434.8 |  |                |  | 51.0 |              |  |              | (106.3 | ) |                |             | 2,379.5 |  |              |              | (6.4 | )    |                |  | (102.8      | ) |  |              | 2,270.3 |  |      |  | (4.9 | ) |  |  | (105.9 | ) |  |  | 2,159.5 | 
|ONSHORE/ DOWNSTREAM |  |            | 149.2   |  |                |  | 10.6 |              |  |              | (10.8  | ) |                |             | 149.0   |  |              |              |      |      |                |  | (10.7       | ) |  |              | 138.3   |  |      |  | (0.8 | ) |  |  | (11.3  | ) |  |  | 126.2   | 
|INDUSTRIES          |  |            | 1.0     |  |                |  |      |              |  |              | (0.7   | ) |                |             | 0.3     |  |              |              |      |      |                |  | (0.2        | ) |  |              | 0.1     |  |      |  |      |   |  |  | (0.1   | ) |  |  | 0.0     | 
|                    |  |            |         |  |                |  |      |              |  |              |        |   |                |             |         |  |              |              |      |      |                |  |             |   |  |              |         |  |      | 
|TOTAL               |  |            | 2,585.0 |  |                |  | 61.6 |              |  |              | (117.8 | ) |                |             | 2,528.8 |  |              |              | (6.4 | )    |                |  | (113.7      | ) |  |              | 2,408.7 |  |      |  | (5.7 | ) |  |  | (117.3 | ) |  |  | 2,285.7 | 
|                    |  |            |         |  |                |  |      |              |  |              |        |   |                |             |         |  |              |              |      |      |                |  |             |   |  |              |         |  |      | 

F-53



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 11


(o) Acquisition of
minority interests of Coflexip in 2003




(p) Presentation of
Consolidated Balance Sheet






| |   |                                              
| | - | ---------------------------------------------
| |  | Advances received from customers on contracts

  




| |   |                    
| | - | -------------------
| |  | Deferred tax assets





| |   |                                                
| | - | -----------------------------------------------
| |  | Treasury shares reserved for stock option plans





| |   |                         
| | - | ------------------------
| |  | Cash and cash equivalent

  


(q) Presentation of
Consolidated Statements of Operations




| |   |                                            
| | - | -------------------------------------------
| |  | Operating expenses/ revenues classification







| |   |                                            
| | - | -------------------------------------------
| |  | General and Administrative costs accounting

Note 30(a)


F-54



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)









| |   |                                           
| | - | ------------------------------------------
| |  | Goodwill amortization for equity investees





| |   |            
| | - | -----------
| |  | Derivatives

  






| |   |                               
| | - | ------------------------------
| |  | Equity in Earnings in Coflexip

Note 2






| |   |                                        
| | - | ---------------------------------------
| |  | Financial result from ongoing contracts

Note 1(t)   




(r) Related
parties




 






F-55



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







| |                             
| | ----------------------------
| | (s) Gross margin recognition







(t) Consolidation of
variable interest entities










| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In 2003, we formed a joint venture in which we held a 45% equity
    interest and accounted for the investment using the
    proportionate method. In 2004, Technip acquired an additional
    10% of the joint venture which is considered as a variable
    interest entity under FIN 46, and we have determined that we are
    the primary beneficiary of the entity. It was consolidated under
    U.S. GAAP at 100% in 2004 which resulted in an increase in
    our sales of
    88.5 million.
|
| |  | In 2003, we formed two joint ventures in which we held
    respectively 65 % and 50% equity interest and accounted for the
    investment using the proportionate method. These joint ventures
    are considered variable interest entities under FIN 46, and we
    have determined that we are the primary beneficiary of these
    entities. They were consolidated under U.S. GAAP at 100% in
    2004 which resulted in an increase in our sales of
    38.2 million.                          



F-56



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 31  Reconciliation to
U.S. GAAP


(a) Net income


|                                                                        |  |       |    |                         |       |  |                    |      |  |  |       |   |  |      |       |   |  |  |       |  
|----------------------------------------------------------------------- |  | ----- | -- | ----------------------- | ----- |  | ------------------ | ---- |  |  | ----- | - |  | ---- | ----- | - |  |  | ----- | -
|                                                                        |  |       |    | Year ended December 31, |      
|                                                                        |  |       |    |                         |      
|                                                                        |  | Notes |    |                         | 2004* |  |                    | 2004 |  |  | 2003  |   |  | 2002 |      
|                                                                        |  |       |    |                         |       |  |                    |      |  |  |       |   |  |      |      
|                                                                        |  |       |    | In millions             |       |  |                   
|                                                                        |  |       |    | of U.S.$                |       |  | In millions of EUR |     
|Net income (loss) as reported in the Consolidated Income
    Statements |  |       |    |                         |       |  | 5.8                |      |  |  | 4.7   |   |  |      | (19.7 | ) |  |  | (29.4 | )
|Contract costs accounting                                               |  |       | 30 | (a)                     |       |  | 5.1                |      |  |  | 4.1   |   |  |      | 0.5   |   |  |  | (2.6  | )
|Contract bid costs                                                      |  |       | 30 | (b)                     |       |  | 5.6                |      |  |  | 4.5   |   |  |      | 1.1   |   |  |  | (2.6  | )
|Foreign currency transactions                                           |  |       | 30 | (c)                     |       |  | (30.3              | )    |  |  | (24.5 | ) |  |      | (10.4 | ) |  |  | (15.6 | )
|Derivative instruments                                                  |  |       | 30 | (c)                     |       |  | 31.9               |      |  |  | 25.8  |   |  |      | (0.6  | ) |  |  | 18.2  |  
|Pension obligations                                                     |  |       | 30 | (d)                     |       |  | 3.6                |      |  |  | 2.9   |   |  |      | (6.2  | ) |  |  | 3.2   |  
|Employee subscription to capital                                        |  |       | 30 | (h)                     |       |  | (11.4              | )    |  |  | (9.2  | ) |  |      |      |   |  |  |      |  
|Stock based compensation                                                |  |       | 30 | (e)                     |       |  | (0.1               | )    |  |  | (0.1  | ) |  |      | (0.1  | ) |  |  | (4.8  | )
|Territoriality contingencies                                            |  |       | 30 | (g)                     |       |  | (43.7              | )    |  |  | (35.4 | ) |  |      |      |   |  |  |      |  
|Acquisition of KTI/MDEU                                                 |  |       | 30 | (f)                     |       |  | (1.2               | )    |  |  | (1.0  | ) |  |      | (0.7  | ) |  |  | (0.7  | )
|Rent expenses of Adria                                                  |  |       | 30 | (m)                     |       |  | (2.1               | )    |  |  | (1.7  | ) |  |      | (20.3 | ) |  |  |      |  
|Amortization of goodwill                                                |  |       | 30 | (n)                     |       |  | 144.0              |      |  |  | 116.6 |   |  |      | 113.7 |   |  |  | 117.8 |  
|                                                                        |  |       |    |                         |       |  |                    |      |  |  |       |   |  |      |      
|Total after U.S. GAAP adjustments before tax                            |  |       |    |                         |       |  | 107.2              |      |  |  | 86.7  |   |  |      | 57.3  |   |  |  | 83.5  |  
|Tax effects of the above adjustments                                    |  |       |    |                         |       |  | (4.2               | )    |  |  | (3.4  | ) |  |      | 12.3  |   |  |  | (0.2  | )
|Net income under U.S. GAAP                                              |  |       |    |                         |       |  | 103.0              |      |  |  | 83.3  |   |  |      | 69.6  |   |  |  | 83.3  |  
|                                                                        |  |       |    |                         |       |  |                    |      |  |  |       |   |  |      |      

F-57



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(b) Shareholders
equity


|                                                                         |  |       |    |                         |       |  |                    |      |  |  |         |   |  |      |         |   |  |  |         |  
|------------------------------------------------------------------------ |  | ----- | -- | ----------------------- | ----- |  | ------------------ | ---- |  |  | ------- | - |  | ---- | ------- | - |  |  | ------- | -
|                                                                         |  |       |    | Year ended December 31, |      
|                                                                         |  |       |    |                         |      
|                                                                         |  | Notes |    |                         | 2004* |  |                    | 2004 |  |  | 2003    |   |  | 2002 |        
|                                                                         |  |       |    |                         |       |  |                    |      |  |  |         |   |  |      |        
|                                                                         |  |       |    | In millions             |       |  |                   
|                                                                         |  |       |    | of U.S.$                |       |  | In millions of EUR |     
|Shareholders equity as reported in the Consolidation
    Balance Sheets |  |       |    |                         |       |  | 2,209.2            |      |  |  | 1,789.0 |   |  |      | 1,938.0 |   |  |  | 2,026.3 |  
|Contract costs accounting                                                |  |       | 30 | (a)                     |       |  | (7.7               | )    |  |  | (6.2    | ) |  |      | (10.3   | ) |  |  | (10.8   | )
|Contract bid costs                                                       |  |       | 30 | (b)                     |       |  | (19.8              | )    |  |  | (16.0   | ) |  |      | (20.5   | ) |  |  | (21.6   | )
|Foreign currency transactions                                            |  |       | 30 | (c)                     |       |  | (83.5              | )    |  |  | (67.6   | ) |  |      | (43.1   | ) |  |  | (32.7   | )
|Derivative instruments                                                   |  |       | 30 | (c)                     |       |  | 44.6               |      |  |  | 36.1    |   |  |      | 93.6    |   |  |  | (28.9   | )
|Pension obligations                                                      |  |       | 30 | (d)                     |       |  | (2.0               | )    |  |  | (1.6    | ) |  |      | (4.5    | ) |  |  | 1.7     |  
|Minimum liability adjustments                                            |  |       | 30 | (d)                     |       |  | (8.9               | )    |  |  | (7.2    | ) |  |      | (14.2   | ) |  |  | (9.7    | )
|Acquisition of KTI/MDEU                                                  |  |       | 30 | (f)                     |       |  | 3.1                |      |  |  | 2.5     |   |  |      | 3.5     |   |  |  | 4.2     |  
|Territoriality contingencies                                             |  |       | 30 | (g)                     |       |  |                   |      |  |  |        |   |  |      | 35.4    |   |  |  | 35.4    |  
|Stock-based compensation                                                 |  |       | 30 | (e)                     |       |  |                   |      |  |  |        |   |  |      |         |   |  |  |         |  
|Coflexip gain on disposition of Cal Dive                                 |  |       | 30 | (k)                     |       |  | (32.8              | )    |  |  | (26.6   | ) |  |      | (26.6   | ) |  |  | (26.6   | )
|Treasury shares                                                          |  |       |    |                         |       |  |                   |      |  |  |        |   |  |      |        |   |  |  | (3.2    | )
|Rent expenses of Adria                                                   |  |       | 30 | (m)                     |       |  | (27.2              | )    |  |  | (22.0   | ) |  |      | (20.3   | ) |  |  |        |  
|Amortization of goodwill                                                 |  |       | 30 | (n)                     |       |  | 455.2              |      |  |  | 368.6   |   |  |      | 252.0   |   |  |  | 138.3   |  
|Acquisition of minority interests of Coflexip in 2003                    |  |       | 30 | (o)                     |       |  | (30.9              | )    |  |  | (25.0   | ) |  |      | (25.0   | ) |  |  |        |  
|                                                                         |  |       |    |                         |       |  |                    |      |  |  |         |   |  |      |        
|Total after U.S. GAAP adjustments before tax                             |  |       |    |                         |       |  | 2,499.3            |      |  |  | 2,024.0 |   |  |      | 2,158.0 |   |  |  | 2,072.4 |  
|Tax effects of the above adjustments                                     |  |       |    |                         |       |  | 35.6               |      |  |  | 28.8    |   |  |      | 6.3     |   |  |  | 36.1    |  
|Shareholders equity under U.S. GAAP                                     |  |       |    |                         |       |  | 2,534.9            |      |  |  | 2,052.8 |   |  |      | 2,164.3 |   |  |  | 2,108.5 |  
|                                                                         |  |       |    |                         |       |  |                    |      |  |  |         |   |  |      |        






|  |                                                                                                                                                                                                                                                                                                                               
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | For the convenience of the reader, the financial statements as
    of and for the year ended December 31, 2004 have been
    translated into U.S. dollars (U.S.$) at the rate of
    1.00 =
    U.S.$1.2349, the noon-buying rate for cable wire transfers fixed
    by the Federal Reserve Bank of New York on May 31, 2005.



|                                                                         |  |             |         |  
|------------------------------------------------------------------------ |  | ----------- | ------- | -
|                                                                         |  | In millions |        
|                                                                         |  | of EUR      |        
|                                                                         |  |             |        
|U.S. GAAP shareholders equity as of
    December 31, 2003.              |  |             | 2,164.3 |  
|U.S. GAAP net income for 2004                                            |  |             | 83.3    |  
|Minimum liability adjustments, net of tax                                |  |             | 4.5     |  
|Additional paid-in capital (stock based compensation) Dividends
    paid |  |             | (129.8  | )
|Capital increase                                                         |  |             | 26.3    |  
|Employee subscription to capital                                         |  |             | 9.2     |  
|Foreign currency translation adjustment                                  |  |             | (23.1   | )
|Treasury stock                                                           |  |             | (22.7   | )
|Stock based compensation                                                 |  |             | 0.1     |  
|Others                                                                   |  |             | (4.4    | )
|Effect of SFAS No. 133, net of tax                                       |  |             | (54.9   | )
|                                                                         |  |             |        
|U.S. GAAP shareholders equity as of
    December 31, 2004.              |  |             | 2,052.8 |  
|                                                                         |  |             |        

F-58



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |              
| | -------------
| | (c) Net sales

|                                            |  |       |    |                         |      |  |                    |      |  |  |         |   |  |      |         |   |  |  |         |  
|------------------------------------------- |  | ----- | -- | ----------------------- | ---- |  | ------------------ | ---- |  |  | ------- | - |  | ---- | ------- | - |  |  | ------- | -
|                                            |  |       |    | Year ended December 31, |     
|                                            |  |       |    |                         |     
|                                            |  | Notes |    |                         | 2004 |  |                    | 2004 |  |  | 2003    |   |  | 2002 |        
|                                            |  |       |    |                         |      |  |                    |      |  |  |         |   |  |      |        
|                                            |  |       |    | In millions             |      |  |                   
|                                            |  |       |    | Of U.S.$                |      |  | In millions of EUR |     
|Net sales under French GAAP                 |  |       |    |                         |      |  | 6,348.6            |      |  |  | 5,141.0 |   |  |      | 4,711.1 |   |  |  | 4,452.3 |  
|Contract costs accounting                   |  |       | 30 | (a)                     |      |  | 5.1                |      |  |  | 4.1     |   |  |      | 0.5     |   |  |  | (2.6    | )
|Contract bid costs                          |  |       | 30 | (b)                     |      |  | 5.6                |      |  |  | 4.5     |   |  |      | 1.1     |   |  |  | (10.8   | )
|Foreign currency transactions               |  |       | 30 | (c)                     |      |  | (95.2              | )    |  |  | (77.1   | ) |  |      | (31.5   | ) |  |  | 7.1     |  
|Financial result from ongoing contracts     |  |       | 30 | (q)                     |      |  | (12.2              | )    |  |  | (9.9    | ) |  |      | (9.9    | ) |  |  | (14.0   | )
|Consolidation of variable interest entities |  |       | 30 | (t)                     |      |  | 156.5              |      |  |  | 126.7   |   |  |      |        |   |  |  |        |  
|                                            |  |       |    |                         |      |  |                    |      |  |  |         |   |  |      |        
|Net sales under U.S. GAAP                   |  |       |    |                         |      |  | 6,408.4            |      |  |  | 5,189.3 |   |  |      | 4,671.3 |   |  |  | 4,432.0 |  
|                                            |  |       |    |                         |      |  |                    |      |  |  |         |   |  |      |        



| |                     
| | --------------------
| | (d) Operating income

|                                            |  |       |    |                         |      |  |                    |      |  |  |       |   |  |      |       |   |  |  |       |  
|------------------------------------------- |  | ----- | -- | ----------------------- | ---- |  | ------------------ | ---- |  |  | ----- | - |  | ---- | ----- | - |  |  | ----- | -
|                                            |  |       |    | Year ended December 31, |     
|                                            |  |       |    |                         |     
|                                            |  | Notes |    |                         | 2004 |  |                    | 2004 |  |  | 2003  |   |  | 2002 |      
|                                            |  |       |    |                         |      |  |                    |      |  |  |       |   |  |      |      
|                                            |  |       |    | In millions             |      |  |                   
|                                            |  |       |    | of U.S.$                |      |  | In millions of EUR |     
|Operating income under French GAAP          |  |       |    |                         |      |  | 319.2              |      |  |  | 258.5 |   |  |      | 227.6 |   |  |  | 204.6 |  
|Contract costs accounting                   |  |       | 30 | (a)                     |      |  | 5.1                |      |  |  | 4.1   |   |  |      | 0.5   |   |  |  | (2.6  | )
|Contract bid costs                          |  |       | 30 | (b)                     |      |  | 5.6                |      |  |  | 4.5   |   |  |      | 1.1   |   |  |  | (2.6  | )
|Pension obligations                         |  |       | 30 | (d)                     |      |  | 3.6                |      |  |  | 2.9   |   |  |      | (6.2  | ) |  |  | 3.2   |  
|Employee subscription to capital            |  |       | 30 | (h)                     |      |  | (11.4              | )    |  |  | (9.2  | ) |  |      |       |   |  |  |       |  
|Stock based compensation                    |  |       | 30 | (e)                     |      |  | (0.1               | )    |  |  | (0.1  | ) |  |      | (0.1  | ) |  |  | (4.8  | )
|Acquisition of KTI/MDEU                     |  |       | 30 | (f)                     |      |  | (1.2               | )    |  |  | (1.0  | ) |  |      | (0.7  | ) |  |  | (0.7  | )
|Restructuring costs                         |  |       | 30 | (q)                     |      |  | (14.8              | )    |  |  | (12.0 | ) |  |      | (7.1  | ) |  |  | (7.0  | )
|Non-recurring loss on former project        |  |       | 30 | (q)                     |      |  | (0.7               | )    |  |  | (0.6  | ) |  |      |      |   |  |  | (8.7  | )
|Rent expenses of Adria                      |  |       | 30 | (m)                     |      |  | (2.1               | )    |  |  | (1.7  | ) |  |      | (20.3 | ) |  |  |      |  
|Consolidation of variable interest entities |  |       | 30 | (t)                     |      |  | (0.2               | )    |  |  | (0.2  | ) |  |      |      |   |  |  |      |  
|Other                                       |  |       |    |                         |      |  |                   |      |  |  |      |   |  |      | (1.2  | ) |  |  | (4.3  | )
|                                            |  |       |    |                         |      |  |                    |      |  |  |       |   |  |      |      
|Operating income under U.S. GAAP            |  |       |    |                         |      |  | 303.0              |      |  |  | 245.2 |   |  |      | 193.6 |   |  |  | 177.1 |  
|                                            |  |       |    |                         |      |  |                    |      |  |  |       |   |  |      |      

Note 32  Additional information


(a) Combined
information concerning proportionate consolidated
entities




F-59



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                    |  |                         |         |   |      |  |         |      |  |  |         |  
|----------------------------------- |  | ----------------------- | ------- | - | ---- |  | ------- | ---- |  |  | ------- | -
|                                    |  | Year ended December 31, |        
|                                    |  |                         |        
|                                    |  | 2004                    |         |   | 2003 |  |         | 2002 | 
|                                    |  |                         |         |   |      |  |         |      | 
|                                    |  | In millions of EUR      |        
|Balance sheet data:                 |  |                         |         |   |      |  |         |      |  |  |         |  
|Non current assets                  |  |                         | 2.1     |   |      |  | 1.9     |      |  |  | 1.7     |  
|Current assets                      |  |                         | 1,367.3 |   |      |  | 1,095.7 |      |  |  | 1,172.2 |  
|Non current liabilities             |  |                         |        |   |      |  |        |      |  |  |        |  
|Current liabilities and equity      |  |                         | 1,369.4 |   |      |  | 1,097.6 |      |  |  | 1,173.9 |  
|Income statement data:              |  |                         |         |   |      |  |         |      |  |  |         |  
|Net Sales                           |  |                         | 613.7   |   |      |  | 445.3   |      |  |  | 428.7   |  
|Cost of sales                       |  |                         | (580.4  | ) |      |  | (423.7  | )    |  |  | (391.9  | )
|Gross Margin                        |  |                         | 33.3    |   |      |  | 21.6    |      |  |  | 36.8    |  
|Operating Income                    |  |                         | 18.6    |   |      |  | 20.3    |      |  |  | 34.8    |  
|Cash flow data:                     |  |                         |         |   |      |  |         |      |  |  |         |  
|Cash flow from operating activities |  |                         | 7.5     |   |      |  | 26.5    |      |  |  | 45.6    |  
|Cash flow from investing activities |  |                         |        |   |      |  | (0.1    | )    |  |  | 0.2     |  
|Cash flow from financing activities |  |                         |        |   |      |  |        |      |  |  |        |  



| |                         
| | ------------------------
| | (b) Comprehensive income



|                                                     |  |                         |       |   |      |  |       |      |  |  |       |  
|---------------------------------------------------- |  | ----------------------- | ----- | - | ---- |  | ----- | ---- |  |  | ----- | -
|                                                     |  | Year ended December 31, |      
|                                                     |  |                         |      
|                                                     |  | 2004                    |       |   | 2003 |  |       | 2002 | 
|                                                     |  |                         |       |   |      |  |       |      | 
|                                                     |  | In millions of EUR      |      
|Net income                                           |  |                         | 4.7   |   |      |  | (19.7 | )    |  |  | (29.4 | )
|Other comprehensive income, net of tax:              |  |                         |       |   |      |  |       |      |  |  |       |  
|Changes in cumulative translation adjustment         |  |                         | (23.1 | ) |      |  | (13.9 | )    |  |  | (1.1  | )
|                                                     |  |                         |       |   |      |  |       |      | 
|Total Comprehensive income                           |  |                         | (18.4 | ) |      |  | (33.6 | )    |  |  | (30.5 | )
|                                                     |  |                         |       |   |      |  |       |      | 
|Accumulated other comprehensive income, end of year: |  |                         |       |   |      |  |       |      |  |  |       |  
|Cumulative translation adjustment                    |  |                         | (25.0 | ) |      |  | (1.9  | )    |  |  | 12.0  |  

(c) Earnings per
share




|                                 |  |              |      |  |      |  |      |      |  |  |      | 
|-------------------------------- |  | ------------ | ---- |  | ---- |  | ---- | ---- |  |  | ---- | 
|                                 |  | December 31, |     
|                                 |  |              |     
|                                 |  | 2004         |      |  | 2003 |  |      | 2002 | 
|                                 |  |              |      |  |      |  |      |      | 
|Net income (in millions)         |  |              | 83.3 |  |      |  | 69.6 |      |  |  | 83.3 | 
|Basic earnings per share(3)      |  |              | 0.88 |  |      |  | 0.74 |      |  |  | 0.81 | 
|Diluted earnings per share(1)(3) |  |              | 0.87 |  |      |  | 0.74 |      |  |  | 0.80 | 

F-60



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                        |  |                          |        |  |      |  |        |      |  |  |         | 
|------------------------------------------------------- |  | ------------------------ | ------ |  | ---- |  | ------ | ---- |  |  | ------- | 
|                                                        |  | December 31,             |       
|                                                        |  |                          |       
|                                                        |  | 2004                     |        |  | 2003 |  |        | 2002 | 
|                                                        |  |                          |        |  |      |  |        |      | 
|                                                        |  | (In thousands of shares) |       
|Weighted average basic number of shares under U.S. GAAP |  |                          | 94,620 |  |      |  | 93,728 |      |  |  | 103,292 | 
|OCEANE bonds(2)                                         |  |                          |       |  |      |  |       |      |  |  |        | 
|Stock options                                           |  |                          | 1,336  |  |      |  | 268    |      |  |  | 532     | 
|                                                        |  |                          |        |  |      |  |        |      | 
|Diluted shares under U.S. GAAP                          |  |                          | 95,956 |  |      |  | 93,996 |      |  |  | 103,824 | 
|                                                        |  |                          |        |  |      |  |        |      | 






|    |                                                                                                                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Diluted earnings per share has been adjusted for the year ended
    December 31, 2003 and 2002, respectively to reflect the
    anti-dilutive effect of the OCEANE bonds and dilutive effect of
    the stock options.                                                                                    
|   
|(2) | The effect of the OCEANE bonds is anti-dilutive. As a result,
    they have not been included in the diluted EPS calculation. If
    the OCEANE bonds were dilutive, the denominator would have
    increased by 3,719,111, 4,208,853 and 4,501,994 at
    December 31, 2004, 2003 and 2002, respectively.
|   
|(3) | On May 13, 2005, the Company effected a one-for-four stock
    split. All share and per share data under U.S. GAAP on this
    Form 20-F for periods prior to and including that date have
    been retroactively adjusted to reflect this stock split. refer
    to note 32(j).                          



|    |                                                  
|--- | -------------------------------------------------
|(d) | Certain Investments in Debt and Equity Securities

Note 19




|    |                         
|--- | ------------------------
|(e) | Stock based compensation



| |                    
| | -------------------
| | Stock option plans:









  


F-61



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                         |  |                         |           |          |       |  |       |        |          |  |           |   |  |          |       |  |       |  |           |   |  |  |       | 
|---------------------------------------- |  | ----------------------- | --------- | -------- | ----- |  | ----- | ------ | -------- |  | --------- | - |  | -------- | ----- |  | ----- |  | --------- | - |  |  | ----- | 
|                                         |  | Year ended December 31, |          
|                                         |  |                         |          
|                                         |  | 2004                    |           |          | 2003  |  |       | 2002   |         
|                                         |  |                         |           |          |       |  |       |        |         
|                                         |  |                         |           | Weighted |       |  |       |        | Weighted |  |           |   |  | Weighted |      
|                                         |  |                         |           | Average  |       |  |       |        | Average  |  |           |   |  | Average  |      
|                                         |  | Shares                  |           |          | Price |  |       | Shares |          |  | Price     |   |  | Shares   |       |  | Price | 
|                                         |  |                         |           |          |       |  |       |        |          |  |           |   |  |          |       |  |       | 
|                                         |  |                         |           | (in )   |       |  |       |        | (in )   |  |           |   |  | (in )   |      
|Outstanding at the beginning of the year |  |                         | 1,521,884 |          |       |  | 103.6 |        |          |  | 1,696,814 |   |  |          | 103.7 |  |       |  | 1,052,674 |   |  |  | 125.1 | 
|Options granted                          |  |                         |          |          |       |  | 0.0   |        |          |  | 5,200     |   |  |          | 74.0  |  |       |  | 711,240   |   |  |  | 72.0  | 
|Options exercised                        |  |                         | (232,195  | )        |       |  | 96.1  |        |          |  | 0         |   |  |          | 0.0   |  |       |  | (9,100    | ) |  |  | 101.6 | 
|Options forfeited                        |  |                         | (81,355   | )        |       |  | 109.8 |        |          |  | (180,130  | ) |  |          | 103.6 |  |       |  | (58,000   | ) |  |  | 103.1 | 
|Outstanding at the end of the year       |  |                         | 1,208,334 |          |       |  | 104.7 |        |          |  | 1,521,884 |   |  |          | 103.6 |  |       |  | 1,696,814 |   |  |  | 103.7 | 
|                                         |  |                         |           |          |       |  |       |        |          |  |           |   |  |          |       |  |       | 
|Exercisable at the end of the year       |  |                         | 554,254   |          |       |  | 104.7 |        |          |  | 846,174   |   |  |          | 103.6 |  |       |  | 370,120   |   |  |  | 103.7 | 
|                                         |  |                         |           |          |       |  |       |        |          |  |           |   |  |          |       |  |       | 



|                            |  |          |        |             |              |  |           |             |  |             |              |  |  |  |         | 
|--------------------------- |  | -------- | ------ | ----------- | ------------ |  | --------- | ----------- |  | ----------- | ------------ |  |  |  | ------- | 
|                            |  |          |        | Number      |              |  | Weighted- |             |  | Number      |             
|                            |  |          |        | Outstanding |              |  | Average   |             |  | Exercisable |             
|                            |  |          |        | at          |              |  | Remaining |             |  | at          |             
|                            |  | Exercise |        |             | December 31, |  |           | Contractual |  |             | December 31, | 
|                            |  | Prices   |        |             | 2004         |  |           | Life        |  |             | 2004         | 
|                            |  |          |        |             |              |  |           |             |  |             |              | 
|                            |  | (in )   |        |             | (in years)   | 
|Plan 1999/2001 Second Layer |  |          | 143.23 |             |              |  | 554,254   |             |  |             | 4.0          |  |  |  | 554,254 | 
|Plan 2002                   |  |          | 71.95  |             |              |  | 648,880   |             |  |             | 3.9          |  |  |  |        | 
|Plan 2003                   |  |          | 73.98  |             |              |  | 5,200     |             |  |             | 4.4          |  |  |  |        | 
|Total                       |  |          |        |             |              |  | 1,208,334 |             |  |             | 3.9          |  |  |  | 554,254 | 
|                            |  |          |        |             |              |  |           |             |  |             |              | 



| |                        
| | -----------------------
| | Coflexip Stock Options:

 







| |                               
| | ------------------------------
| | Employee Stock Purchase Plans:



F-62



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                        |  |      |         |  |      |  |   |      |  |  |        | 
|--------------------------------------- |  | ---- | ------- |  | ---- |  | - | ---- |  |  | ------ | 
|                                        |  | 2004 |         |  | 2003 |  |   | 2002 | 
|                                        |  |      |         |  |      |  |   |      | 
|Number of shares                        |  |      | 331,780 |  |      |  |  |      |  |  | 98,717 | 
|Proceeds on sales (in millions of euro) |  |      | 24.4    |  |      |  |  |      |  |  | 10.1   | 
|Average cost of treasury sales          |  |      | 73.6    |  |      |  |  |      |  |  | 102.5  | 

 




|                                      |                                                                                                                                                     |                         |      |       |      |  |      |      |   |  |      |       |  
|------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------- | ---- | ----- | ---- |  | ---- | ---- | - |  | ---- | ----- | -
|                                      |                                                                                                                                                     | Year Ended December 31, |     
|                                      |                                                                                                                                                     |                         |     
|                                      |                                                                                                                                                     | 2004                    |      |       | 2003 |  |      | 2002 |  
|                                      |                                                                                                                                                     |                         |      |       |      |  |      |      |  
|                                      |                                                                                                                                                     | (In millions of EUR)    |     
|Net Income under U.S. GAAP            |                                                                                                                                                     |                         | 83.3 |       |      |  | 69.6 |      |   |  | 83.3 |      
|                                      | As reported Include: Total stock based-employee compensation
    expense determined under APB25 for all awards net of related tax
    effects       |                         |      | 9.3   |      |  |      | 0.1  |   |  |      | 4.8   |  
|                                      | Deduct: Total stock-based employee compensation expense
    determined under fair value based method for all awards, net of
    related tax effects |                         |      | (15.9 | )    |  |      | (9.2 | ) |  |      | (14.6 | )
|                                      |                                                                                                                                                     |                         |      |       |      |  |      |      |  
|                                      | Pro Forma                                                                                                                                           |                         |      | 76.7  |      |  |      | 60.5 |   |  |      | 73.5  |  
|                                      |                                                                                                                                                     |                         |      |       |      |  |      |      |  
|Basic earnings per share*             |                                                                                                                                                     |                         | 0.88 |       |      |  | 0.74 |      |   |  | 0.81 |      
|Diluted earnings per share*           |                                                                                                                                                     |                         | 0.87 |       |      |  | 0.74 |      |   |  | 0.80 |      
|Pro forma basic earnings per share*   |                                                                                                                                                     |                         | 0.81 |       |      |  | 0.65 |      |   |  | 0.71 |      
|Pro forma diluted earnings per share* |                                                                                                                                                     |                         | 0.80 |       |      |  | 0.64 |      |   |  | 0.71 |      








|                      |  |              |     |  |      |  |     |      |  |  |     |  
|--------------------- |  | ------------ | --- |  | ---- |  | --- | ---- |  |  | --- | -
|                      |  | Year ended   |    
|                      |  | December 31, |    
|                      |  |              |    
|                      |  | 2004*        |     |  | 2003 |  |     | 2002 | 
|                      |  |              |     |  |      |  |     |      | 
|Expected life (years) |  |              | N/A |  |      |  | 6.0 |      |  |  | 6.0 |  
|Interest rate         |  |              | N/A |  |      |  | 3.8 | %    |  |  | 3.8 | %
|Volatility            |  |              | N/A |  |      |  | 35  | %    |  |  | 35  | %
|Dividend yield        |  |              | N/A |  |      |  | 2.1 | %    |  |  | 2.1 | %






(f) Pension plan and
other cost retirement benefits other than pension plans




F-63



---



##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                               |  |                  |     |   |                |  |     |      |  |  |      |   |  |  |      |  
|------------------------------ |  | ---------------- | --- | - | -------------- |  | --- | ---- |  |  | ---- | - |  |  | ---- | -
|                               |  | Pension Benefits |     |   | Other Benefits | 
|                               |  |                  |     |   |                | 
|                               |  | 2004             |     |   | 2003           |  |     | 2004 |  |  | 2003 |  
|                               |  |                  |     |   |                |  |     |      |  |  |      |  
|Discount rate                  |  |                  | 4.6 | % |                |  | 5.0 | %    |  |  | 4.50 | % |  |  | 4.50 | %
|Rate of compensation increase  |  |                  | 3.3 | % |                |  | 3.3 | %    |  |  | N/A  |   |  |  | N/A  |  
|Expected return on plan assets |  |                  | 5.1 | % |                |  | 5.3 | %    |  |  | N/A  |   |  |  | N/A  |  



o


|                                                                                  |  |                    |       |   |                |  |       |      |  |  |       |   |  |      |      |   |      |  |     |  |  |  |      |  
|--------------------------------------------------------------------------------- |  | ------------------ | ----- | - | -------------- |  | ----- | ---- |  |  | ----- | - |  | ---- | ---- | - | ---- |  | --- |  |  |  | ---- | -
|                                                                                  |  | Pension Benefits   |       |   | Other Benefits | 
|                                                                                  |  |                    |       |   |                | 
|                                                                                  |  | 2004               |       |   | 2003           |  |       | 2002 |  |  | 2004  |   |  | 2003 |      |   | 2002 | 
|                                                                                  |  |                    |       |   |                |  |       |      |  |  |       |   |  |      |      |   |      | 
|                                                                                  |  | In millions of EUR |      
|Change in benefit obligation:                                                     |  |                    |       |   |                |  |       |      |  |  |       |   |  |      |      |   |      |  |     |  |  |  |      |  
|Benefit Obligation at beginning of year                                           |  |                    | 184.2 |   |                |  | 160.1 |      |  |  | 130.5 |   |  |      | 0.8  |   |      |  | 0.8 |  |  |  | 0.9  |  
|Service cost                                                                      |  |                    | 7.3   |   |                |  | 8.3   |      |  |  | 6.9   |   |  |      |     |   |      |  |    |  |  |  |     |  
|Interest cost                                                                     |  |                    | 7.9   |   |                |  | 7.7   |      |  |  | 5.7   |   |  |      | 0.1  |   |      |  |    |  |  |  |     |  
|Plan participants contributions                                                   |  |                    |      |   |                |  | 0.1   |      |  |  |      |   |  |      |     |   |      |  |    |  |  |  |     |  
|Amendments                                                                        |  |                    | (2.9  | ) |                |  |      |      |  |  |      |   |  |      |     |   |      |  |     |  |  |  |      |  
|Acquisitions/ disposals                                                           |  |                    | (20.9 | ) |                |  | 15.1  |      |  |  | (0.1  | ) |  |      |     |   |      |  |    |  |  |  |     |  
|Curtailments/ Settlements                                                         |  |                    | 0.2   |   |                |  | 0.2   |      |  |  |      |   |  |      |     |   |      |  |    |  |  |  |     |  
|Actuarial (gain)                                                                  |  |                    | 1.8   |   |                |  | (2.0  | )    |  |  | 23.6  |   |  |      | 0.3  |   |      |  |    |  |  |  |     |  
|Benefits paid                                                                     |  |                    | (7.7  | ) |                |  | (4.5  | )    |  |  | (6.5  | ) |  |      | (0.1 | ) |      |  |    |  |  |  | (0.1 | )
|Other                                                                             |  |                    |      |   |                |  | (0.8  | )    |  |  |      |   |  |      |     |   |      |  |    |  |  |  |     |  
|                                                                                  |  |                    |       |   |                |  |       |      |  |  |       |   |  |      |      |   |      | 
|Benefit Obligation at end of year                                                 |  |                    | 169.9 |   |                |  | 184.2 |      |  |  | 160.1 |   |  |      | 1.1  |   |      |  | 0.8 |  |  |  | 0.8  |  
|Change in plan assets:                                                            |  |                    |       |   |                |  |       |      |  |  |       |   |  |      |      |   |      |  |     |  |  |  |      |  
|Fair value of plan assets at beginning of year                                    |  |                    | 59.3  |   |                |  | 44.8  |      |  |  | 45.4  |   |  |      |     |   |      |  |    |  |  |  |     |  
|Actual return on plan assets                                                      |  |                    | 5.4   |   |                |  | 4.5   |      |  |  | (1.1  | ) |  |      |     |   |      |  |    |  |  |  |     |  
|Group contribution                                                                |  |                    | 7.8   |   |                |  | 2.9   |      |  |  | 2.0   |   |  |      |     |   |      |  |    |  |  |  |     |  
|Plan participants contributions                                                   |  |                    | 0.2   |   |                |  | 0.1   |      |  |  |      |   |  |      |     |   |      |  |    |  |  |  |     |  
|Benefits paid                                                                     |  |                    | (5.9  | ) |                |  | (1.9  | )    |  |  | (1.5  | ) |  |      |     |   |      |  |    |  |  |  |     |  
|Acquisitions and disposals                                                        |  |                    | 2.2   |   |                |  | 9.1   |      |  |  |      |   |  |      |     |   |      |  |    |  |  |  |     |  
|Other                                                                             |  |                    | (0.2  | ) |                |  | (0.2  | )    |  |  |      |   |  |      |     |   |      |  |    |  |  |  |     |  
|                                                                                  |  |                    |       |   |                |  |       |      |  |  |       |   |  |      |      |   |      | 
|Fair value of plan assets at end of year                                          |  |                    | 68.8  |   |                |  | 59.3  |      |  |  | 44.8  |   |  |      |     |   |      |  |    |  |  |  |     |  
|Funded status of the plan                                                         |  |                    | 101.1 |   |                |  | 124.9 |      |  |  | 115.3 |   |  |      | 1.1  |   |      |  | 0.8 |  |  |  | 0.8  |  
|Unrecognized actuarial (gains) or losses and unrecognized prior
    service costs |  |                    | (27.8 | ) |                |  | 32.3  |      |  |  | (31.4 | ) |  |      | (0.4 | ) |      |  |    |  |  |  |     |  
|                                                                                  |  |                    |       |   |                |  |       |      |  |  |       |   |  |      |      |   |      | 
|Accrued (prepaid) benefit cost                                                    |  |                    | 73.3  |   |                |  | 92.6  |      |  |  | 83.9  |   |  |      | 0.7  |   |      |  | 0.8 |  |  |  | 0.8  |  
|                                                                                  |  |                    |       |   |                |  |       |      |  |  |       |   |  |      |      |   |      | 

F-64



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##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                            |  |      |       |  |      |  |       |      |  |  |       | 
|----------------------------------------------------------- |  | ---- | ----- |  | ---- |  | ----- | ---- |  |  | ----- | 
|                                                            |  | 2004 |       |  | 2003 |  |       | 2002 | 
|                                                            |  |      |       |  |      |  |       |      | 
|Projected Benefit Obligation                                |  |      | 103.4 |  |      |  | 128.3 |      |  |  | 104.3 | 
|Accumulated Benefit Obligation                              |  |      | 86.3  |  |      |  | 108.2 |      |  |  | 93.1  | 
|Fair Value of Plan Assets with ABO in excess of Plan Assets |  |      | 16.0  |  |      |  | 13.3  |      |  |  | 4.0   | 

|                                                                |  |                    |      |   |                |  |      |      |  |  |      |   |  |      |     |  |      |  |   |  |  |  |   | 
|--------------------------------------------------------------- |  | ------------------ | ---- | - | -------------- |  | ---- | ---- |  |  | ---- | - |  | ---- | --- |  | ---- |  | - |  |  |  | - | 
|                                                                |  | Pension Benefits   |      |   | Other Benefits | 
|                                                                |  |                    |      |   |                | 
|                                                                |  | 2004               |      |   | 2003           |  |      | 2002 |  |  | 2004 |   |  | 2003 |     |  | 2002 | 
|                                                                |  |                    |      |   |                |  |      |      |  |  |      |   |  |      |     |  |      | 
|                                                                |  | In millions of EUR |     
|Annual cost under U.S. GAAP:                                    |  |                    |      |   |                |  |      |      |  |  |      |   |  |      |     |  |      |  |   |  |  |  |   | 
|Service cost                                                    |  |                    | 7.3  |   |                |  | 8.3  |      |  |  | 6.9  |   |  |      |    |  |      |  |  |  |  |  |  | 
|Expected interest cost                                          |  |                    | 7.9  |   |                |  | 7.7  |      |  |  | 5.7  |   |  |      | 0.1 |  |      |  |  |  |  |  |  | 
|Expected return on plan assets                                  |  |                    | (3.5 | ) |                |  | (4.7 | )    |  |  | (2.7 | ) |  |      |    |  |      |  |  |  |  |  |  | 
|Amortization of actuarial gain and loss and prior service costs |  |                    | 1.7  |   |                |  | 2.5  |      |  |  | 0.3  |   |  |      |    |  |      |  |  |  |  |  |  | 
|Effects of settlements/ curtailments                            |  |                    |     |   |                |  | 0.2  |      |  |  |     |   |  |      |    |  |      |  |  |  |  |  |  | 
|                                                                |  |                    |      |   |                |  |      |      |  |  |      |   |  |      |     |  |      | 
|Net periodic benefit cost                                       |  |                    | 13.4 |   |                |  | 14.0 |      |  |  | 10.2 |   |  |      | 0.1 |  |      |  |  |  |  |  |  | 
|                                                                |  |                    |      |   |                |  |      |      |  |  |      |   |  |      |     |  |      | 



|                               |  |                    |     |  |      |  |     |      |  |  |      |  |  |      |   |  |      |  |   |  |  |  |     | 
|------------------------------ |  | ------------------ | --- |  | ---- |  | --- | ---- |  |  | ---- |  |  | ---- | - |  | ---- |  | - |  |  |  | --- | 
|                               |  | 2004               |     |  | 2003 |  |     | 2002 |  |  | 2004 |  |  | 2003 |   |  | 2002 | 
|                               |  |                    |     |  |      |  |     |      |  |  |      |  |  |      |   |  |      | 
|                               |  | In millions of EUR |    
|Annual cost under French GAAP: |  |                    | 4.0 |  |      |  | 5.1 |      |  |  | 5.6  |  |  |      |  |  |      |  |  |  |  |  | 0.1 | 



 




|                                          |  |                    |      |   |                |  |       |      |  |  |      |   |  |      |     |  |      |  |     |  |  |  |     | 
|----------------------------------------- |  | ------------------ | ---- | - | -------------- |  | ----- | ---- |  |  | ---- | - |  | ---- | --- |  | ---- |  | --- |  |  |  | --- | 
|                                          |  | Pension Benefits   |      |   | Other Benefits | 
|                                          |  |                    |      |   |                | 
|                                          |  | 2004               |      |   | 2003           |  |       | 2002 |  |  | 2004 |   |  | 2003 |     |  | 2002 | 
|                                          |  |                    |      |   |                |  |       |      |  |  |      |   |  |      |     |  |      | 
|                                          |  | In millions of EUR |     
|Accrued benefit liability (including MLA) |  |                    | 87.5 |   |                |  | 113.7 |      |  |  | 99.9 |   |  |      | 0.8 |  |      |  | 0.8 |  |  |  | 0.9 | 
|Prepaid benefit cost                      |  |                    | (6.1 | ) |                |  | (6.9  | )    |  |  | (6.3 | ) |  |      |    |  |      |  |    |  |  |  |    | 
|Minimum liability adjustment              |  |                    | (8.1 | ) |                |  | (14.2 | )    |  |  | (9.7 | ) |  |      |    |  |      |  |    |  |  |  |    | 
|Including in other comprehensive income   |  |                    | (7.2 | ) |                |  | (14.2 | )    |  |  | (0.7 | ) |  |      |    |  |      |  |    |  |  |  |    | 
|Including in intangible assets            |  |                    | (0.9 | ) |                |  |      |      |  |  |     |   |  |      |    |  |      |  |    |  |  |  |    | 
|                                          |  |                    |      |   |                |  |       |      |  |  |      |   |  |      |     |  |      | 
|Net amount recognised for under U.S. GAAP |  |                    | 73.3 |   |                |  | 92.6  |      |  |  | 83.9 |   |  |      | 0.8 |  |      |  | 0.8 |  |  |  | 0.9 | 
|                                          |  |                    |      |   |                |  |       |      |  |  |      |   |  |      |     |  |      | 

F-65



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##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                                                                                |  |                    |      |   |                |  |       |      |  |  |      |   |  |      |     |  |      |  |     |  |  |  |     | 
|----------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------ | ---- | - | -------------- |  | ----- | ---- |  |  | ---- | - |  | ---- | --- |  | ---- |  | --- |  |  |  | --- | 
|                                                                                                                                                |  | Pension Benefits   |      |   | Other Benefits | 
|                                                                                                                                                |  |                    |      |   |                | 
|                                                                                                                                                |  | 2004               |      |   | 2003           |  |       | 2002 |  |  | 2004 |   |  | 2003 |     |  | 2002 | 
|                                                                                                                                                |  |                    |      |   |                |  |       |      |  |  |      |   |  |      |     |  |      | 
|                                                                                                                                                |  | In millions of EUR |     
|Net amount accrued for under U.S. GAAP (before prepaid
    costs)                                                                               |  |                    | 87.5 |   |                |  | 113.7 |      |  |  | 99.9 |   |  |      | 0.7 |  |      |  | 0.8 |  |  |  | 0.9 | 
|Excess funding of plans recognized in income only when paid back
    to the Company                                                             |  |                    | (6.1 | ) |                |  | (6.9  | )    |  |  | (6.3 | ) |  |      |    |  |      |  |    |  |  |  |    | 
|Impact of transition obligation of prior service cost and of
    actuarial gains recognized with a different timing under local
    regulations |  |                    | (1.6 | ) |                |  | (4.1  | )    |  |  | 1.6  |   |  |      |    |  |      |  |    |  |  |  |    | 
|Minimum Liabilities Adjustment                                                                                                                  |  |                    | (8.1 | ) |                |  | (14.2 | )    |  |  | (9.7 | ) |  |      |     |  |      |  |    |  |  |  |    | 
|Including in other comprehensive income                                                                                                         |  |                    | (7.2 | ) |                |  | (14.2 | )    |  |  | (9.7 | ) |  |      |    |  |      |  |    |  |  |  |    | 
|Including in intangible assets                                                                                                                  |  |                    | (0.9 | ) |                |  |      |      |  |  |     |   |  |      |    |  |      |  |    |  |  |  |    | 
|                                                                                                                                                |  |                    |      |   |                |  |       |      |  |  |      |   |  |      |     |  |      | 
|Net amount accrued for in consolidated financial
    statements                                                                                 |  |                    | 71.7 |   |                |  | 88.5  |      |  |  | 85.5 |   |  |      | 0.7 |  |      |  | 0.8 |  |  |  | 0.9 | 
|                                                                                                                                                |  |                    |      |   |                |  |       |      |  |  |      |   |  |      |     |  |      | 

(g) Derivative
instruments


Note 30(c)








 financial gains (losses).





F-66



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##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |         
|--- | --------
|(h) | Goodwill

Note 30(m)




|    |                                          
|--- | -----------------------------------------
|(i) | Recently issued accounting pronouncements











F-67



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##### Table of Contents



TECHNIP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                                
| | -----------------------------------------------
| | (j) Subsequent Events (after April 4,
    2005)



| |                      
| | ---------------------
| | a) 2004 Dividend paid






| |               
| | --------------
| | b) Share split





| |                     
| | --------------------
| | c) Seamec litigation



F-68



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##### Table of Contents



SIGNATURES






| |        
| | -------
| | Technip



| |     |                 
| | --- | ----------------
| | By: | /s/ Daniel Valot

| |                               
| | ------------------------------
| |                               
| | Name: Daniel Valot            
| | Title: Chief Executive Officer