##### Table of Contents



As filed with the Securities and Exchange Commission on
June 29, 2006

















|  |  |                                                                                                                                                                                                     |  | 
|- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | 
|o |  | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR
    (g) OF
    THE SECURITIES EXCHANGE ACT OF 1934
    OR                                                                                       |  | 
|þ |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
    THE SECURITIES EXCHANGE ACT OF 1934
    For the fiscal year ended December 31, 2005OR                                                          |  | 
|o |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
    THE SECURITIES EXCHANGE ACT OF 1934
    For the transition period
    from           to                                                    |  | 
|o |  | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
    THE SECURITIES EXCHANGE ACT OF 1934
    Date of event requiring this shell company
    report           Commission 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


(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 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
0.7625 per
share:
98,874,172(2)




Yes þ o




o No þ




Yes þ o


12b-2


|                           |                      |                          | 
|-------------------------- | -------------------- | ------------------------ | 
|Large accelerated filer  o | Accelerated filer  o | Non-accelerated filer  þ | 



o Item 18 þ


12b-2


o No 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 4A.  |  | Unresolved Staff Comments                                                        |     |      | 47  | 
|Item 5.   |  | Operating and Financial Review and
    Prospects                                 |     |      | 48  | 
|Item 6.   |  | Directors, Senior Management and
    Employees                                   |     |      | 64  | 
|Item 7.   |  | Major Shareholders and Related Party
    Transactions                            |     |      | 78  | 
|Item 8.   |  | Financial Information                                                            |     |      | 79  | 
|Item 9.   |  | The Offer and Listing                                                            |     |      | 82  | 
|Item 10.  |  | Additional Information                                                           |     |      | 86  | 
|Item 11.  |  | Quantitative and Qualitative Disclosures
    About Market Risk                   |     |      | 115 | 
|Item 12.  |  | Description of Securities Other than Equity
    Securities                       |     |      | 118 | 
|         
|PART II   |  |                                                                                  | 119 |     
|Item 13.  |  | Defaults, Dividend Arrearages and
    Delinquencies                              |     |      | 119 | 
|Item 14.  |  | Material Modifications to the Rights of
    Security Holders and Use of Proceeds |     |      | 119 | 
|Item 15.  |  | Controls and Procedures                                                          |     |      | 119 | 
|Item 16.  |  | [Reserved]                                                                       |     |      | 119 | 
|Item 16A. |  | Audit Committee Financial Expert                                                 |     |      | 119 | 
|Item 16B. |  | Code of Ethics                                                                   |     |      | 119 | 
|Item 16C. |  | Principal Accountant Fees and Services                                           |     |      | 119 | 
|Item 16D. |  | Exemptions from the Listing Standards for
    Audit Committees                   |     |      | 121 | 
|Item 16E. |  | Purchases of Equity Securities by the
    Issuer and Affiliated Purchasers       |     |      | 121 | 
|         
|PART III  |  |                                                                                  | 122 |     
|Item 17.  |  | Financial Statements                                                             |     |      | 122 | 
|Item 18.  |  | Financial Statements                                                             |     |      | 122 | 
|Item 19.  |  | Exhibits                                                                         |     |      | 122 | 
|EX-1.1   
|EX-12.1  
|EX-12.2  
|EX-13.1  
|EX-14.1  



1



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##### Table of Contents









---



##### 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;                                                                                                                                  
|
| |  | interest rate fluctuations;                                                                                                                             
|
| |  | raw material 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;                                                                                                          

3



---



##### Table of Contents





| |   |                                                                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | severe weather conditions;                                                                                                                                                                                             
|
| |  | our ability to successfully keep pace with technology changes;                                                                                                                                                         
|
| |  | 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 of January 1, 2005;
|
| |  | political and social stability in developing countries;                                                                                                                                                                
|
| |  | competition;                                                                                                                                                                                                           
|
| |  | supply chain bottlenecks;                                                                                                                                                                                              
|
| |  | the ability of our subcontractors to attract skilled
    labor; and                                                                                                                                                    
|
| |  | our ability to manage and mitigate logistical challenges due to
    underdeveloped infrastructure in some countries where we are
    performing projects.                                                              





6-K


4



---



##### 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









|                                                                                                        |  |                          |         |  |      |  |         | 
|------------------------------------------------------------------------------------------------------- |  | ------------------------ | ------- |  | ---- |  | ------- | 
|                                                                                                        |  | As of and For the        |        
|                                                                                                        |  | Years ended December 31, |        
|                                                                                                        |  |                          |        
|                                                                                                        |  | 2005                     |         |  | 2004 | 
|                                                                                                        |  |                          |         |  |      | 
|                                                                                                        |  |                         |         |  |     | 
|                                                                                                        |  |                          |         |  |      | 
|                                                                                                        |  | (amounts in  millions,  |        
|                                                                                                        |  | except share and         |        
|                                                                                                        |  | per share data)          |        
|INCOME STATEMENT DATA:                                                                                  |  |                          |         |  |      |  |         | 
|IFRS                                                                                                    |  |                          |         |  |      |  |         | 
|Revenues                                                                                                |  |                          | 5,376.1 |  |      |  | 5,140.9 | 
|Income from operations                                                                                  |  |                          | 231.0   |  |      |  | 233.6   | 
|Income from continuing operations                                                                       |  |                          | 100.0   |  |      |  | 114.2   | 
|Net income attributable to shareholders of the Group                                                    |  |                          | 93.3    |  |      |  | 111.8   | 
|Earnings Per Share Data:                                                                                |  |                          |         |  |      |  |         | 
|Weighted average shares outstanding (thousands)                                                         |  |                          | 95,687  |  |      |  | 94,454  | 
|Diluted number of shares (thousands)                                                                    |  |                          | 97,217  |  |      |  | 110,843 | 
|Basic earnings per share from continuing operations attributable
    to the equity holders of the Group |  |                          | 1.05    |  |      |  | 1.21    | 
|Basic net income per share attributable to the equity holders of
    the Group                          |  |                          | 0.98    |  |      |  | 1.18    | 
|Diluted net income per share attributable to the equity holders
    of the Group                        |  |                          | 0.96    |  |      |  | 1.13    | 
|OTHER FINANCIAL DATA:                                                                                   |  |                          |         |  |      |  |         | 
|Purchase of fixed assets                                                                                |  |                          | 170.5   |  |      |  | 123.8   | 
|Depreciation and amortization                                                                           |  |                          | 143.3   |  |      |  | 142.1   | 

5



---



##### Table of Contents



|                                                  |  |                          |         |  |      |  |         | 
|------------------------------------------------- |  | ------------------------ | ------- |  | ---- |  | ------- | 
|                                                  |  | As of and For the        |        
|                                                  |  | Years ended December 31, |        
|                                                  |  |                          |        
|                                                  |  | 2005                     |         |  | 2004 | 
|                                                  |  |                          |         |  |      | 
|                                                  |  |                         |         |  |     | 
|                                                  |  |                          |         |  |      | 
|                                                  |  | (amounts in  millions,  |        
|                                                  |  | except share and         |        
|                                                  |  | per share data)          |        
|BALANCE SHEET DATA:                               |  |                          |         |  |      |  |         | 
|Cash and cash equivalents                         |  |                          | 2,187.8 |  |      |  | 1,434.0 | 
|Non-current assets, net                           |  |                          | 3,334.5 |  |      |  | 3,337.7 | 
|Total assets                                      |  |                          | 7,297.0 |  |      |  | 6,417.6 | 
|Total current debt                                |  |                          | 214.4   |  |      |  | 192.0   | 
|Convertible bonds (OCEANE)                        |  |                          | 650.1   |  |      |  | 670.9   | 
|Total non-current debt                            |  |                          | 1,305.3 |  |      |  | 1,408.7 | 
|Shareholders equity excluding Minority Interests |  |                          | 1,953.7 |  |      |  | 1,851.6 | 
|Minority interests                                |  |                          | 13.9    |  |      |  | 9.8     | 



|                                                                                                        |  |                                            |         |   |      |  |         |      |  |  |         |  |  |      |         |  |  |  |         | 
|------------------------------------------------------------------------------------------------------- |  | ------------------------------------------ | ------- | - | ---- |  | ------- | ---- |  |  | ------- |  |  | ---- | ------- |  |  |  | ------- | 
|                                                                                                        |  | As of and For the Years ended December 31, |        
|                                                                                                        |  |                                            |        
|                                                                                                        |  | 2005                                       |         |   | 2004 |  |         | 2003 |  |  | 2002    |  |  | 2001 |        
|                                                                                                        |  |                                            |         |   |      |  |         |      |  |  |         |  |  |      |        
|                                                                                                        |  |                                           |         |   |     |  |         |     |  |  |        |  |  |     |        
|                                                                                                        |  |                                            |         |   |      |  |         |      |  |  |         |  |  |      |        
|                                                                                                        |  | (amounts in  millions, except share data) |        
|INCOME STATEMENT DATA:                                                                                  |  |                                            |         |   |      |  |         |      |  |  |         |  |  |      |         |  |  |  |         | 
|U.S. GAAP                                                                                               |  |                                            |         |   |      |  |         |      |  |  |         |  |  |      |         |  |  |  |         | 
|Revenues                                                                                                |  |                                            | 5,410.1 |   |      |  | 5,073.6 |      |  |  | 4,671.3 |  |  |      | 4,432.0 |  |  |  | 3,547.3 | 
|Income from operations                                                                                  |  |                                            | 234.0   |   |      |  | 249.2   |      |  |  | 193.6   |  |  |      | 177.1   |  |  |  | 198.7   | 
|Income from continuing operations                                                                       |  |                                            | 96.7    | * |      |  | 87.4    |      |  |  | 193.6   |  |  |      | 177.1   |  |  |  | 198.7   | 
|Net income attributable to shareholders of the Group(1)                                                 |  |                                            | 93.7    |   |      |  | 83.3    |      |  |  | 69.6    |  |  |      | 83.3    |  |  |  | 114.8   | 
|Earnings Per Share Data:(2)                                                                             |  |                                            |         |   |      |  |         |      |  |  |         |  |  |      |         |  |  |  |         | 
|Weighted average shares outstanding (thousands)                                                         |  |                                            | 95,687  |   |      |  | 94,620  |      |  |  | 93,728  |  |  |      | 103,292 |  |  |  | 67,080  | 
|Diluted number of shares (thousands)(3)                                                                 |  |                                            | 97,217  |   |      |  | 95,956  |      |  |  | 93,996  |  |  |      | 103,824 |  |  |  | 67,848  | 
|Basic earnings per share from continuing operations attributable
    to the equity holders of the Group |  |                                            | 1.01    |   |      |  | 0.92    |      |  |  | 0.74    |  |  |      | 0.81    |  |  |  | 1.71    | 
|Basic net income per share attributable to the equity holders of
    the Group                          |  |                                            | 0.98    |   |      |  | 0.88    |      |  |  | 0.74    |  |  |      | 0.81    |  |  |  | 1.71    | 
|Diluted net income per share attributable to the equity holders
    of the Group                        |  |                                            | 0.96    |   |      |  | 0.87    |      |  |  | 0.74    |  |  |      | 0.80    |  |  |  | 1.69    | 
|BALANCE SHEET DATA:                                                                                     |  |                                            |         |   |      |  |         |      |  |  |         |  |  |      |         |  |  |  |         | 
|Total long-term debt(4)                                                                                 |  |                                            | 1,267.4 |   |      |  | 1,367.7 |      |  |  | 903.2   |  |  |      | 950.1   |  |  |  | 1,182.2 | 
|Total assets                                                                                            |  |                                            | 7,484.1 |   |      |  | 7,003.2 |      |  |  | 6,045.9 |  |  |      | 5,972.9 |  |  |  | 7,672.4 | 
|Shareholders equity                                                                                    |  |                                            | 2,147.3 |   |      |  | 2,052.8 |      |  |  | 2,164.3 |  |  |      | 2,108.5 |  |  |  | 2,228.3 | 






|    |                                                                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|*   | Does not include the cumulative effect of change in accounting
    principles for
    10.6 millions
    in 2005.                                                                                                        
|   
|(1) | Net income under U.S. GAAP for 2005 as reported above is
    audited. This differs from Net income under U.S. GAAP for 2005
    as published on February 23, 2006.                                                       
|   
|(2) | On May 13, 2005, we effected a one-for-four share split.
    All share and per share data under U.S. GAAP for the period
    to and including that date have been retroactively adjusted to
    reflect this share split.
|   
|(3) | 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.                                                          
|   
|(4) | Includes
    612.2 million,
    which is relative to the nominal amount of the bond debt
    (OCEANE).                                                                                                                  

6



---



##### Table of Contents



Exchange Rate Information


 Banque
de France


|                                  |  |                        |      |  |         |  |      |      |  |  |      |  |  |  |      | 
|--------------------------------- |  | ---------------------- | ---- |  | ------- |  | ---- | ---- |  |  | ---- |  |  |  | ---- | 
|                                  |  | U.S. dollars per 1.00 |     
|                                  |  |                        |     
|                                  |  | Year/period            |      |  | Average |  |      |     
|                                  |  | end rate               |      |  | rate(1) |  |      | High |  |  | Low  | 
|                                  |  |                        |      |  |         |  |      |      |  |  |      | 
|Annual amounts                    |  |                        |      |  |         |  |      |      |  |  |      |  |  |  |      | 
|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 | 
|2005                              |  |                        | 1.18 |  |         |  | 1.24 |      |  |  | 1.35 |  |  |  | 1.17 | 
|Monthly amounts                   |  |                        |      |  |         |  |      |      |  |  |      |  |  |  |      | 
|December 2005                     |  |                        | 1.18 |  |         |  | 1.19 |      |  |  | 1.20 |  |  |  | 1.17 | 
|January 2006                      |  |                        | 1.22 |  |         |  | 1.21 |      |  |  | 1.23 |  |  |  | 1.20 | 
|February 2006                     |  |                        | 1.19 |  |         |  | 1.19 |      |  |  | 1.21 |  |  |  | 1.19 | 
|March 2006                        |  |                        | 1.21 |  |         |  | 1.20 |      |  |  | 1.22 |  |  |  | 1.19 | 
|April 2006                        |  |                        | 1.26 |  |         |  | 1.23 |      |  |  | 1.26 |  |  |  | 1.21 | 
|May 2006                          |  |                        | 1.28 |  |         |  | 1.28 |      |  |  | 1.29 |  |  |  | 1.26 | 
|June 2006 (through June 26, 2006) |  |                        | 1.26 |  |         |  | 1.27 |      |  |  | 1.30 |  |  |  | 1.25 | 






|    |                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------
|(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(1) |  | (in  millions) |      |  | as of December 31, |              |            | (in )       |           |             | (in )   |          
|        |  |                 |      |  |                    |              |            |              |           |             |          |          
|2005(2) |  |                 | 90.9 |  |                    |              | 98,874,172 |              |           |             | 0.92     |           |  |  | N/A  |  |  |  | 0.92 | 
|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 | 






|    |                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Pursuant to French law, payment of dividends must be made within
    nine months following the end of the fiscal year to which they
    relate.
|   
|(2) | On May 13, 2005, pursuant to a share split, the number of
    our outstanding shares was multiplied by four.                                   

7



---



##### 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



---



##### 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, which in turn is influenced by the
    growth rate of global GDP;
|
| |  | 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.


mark-to


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



12-month


 


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


Supply chain bottlenecks could adversely affect our
results of operations.




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.


40-50


10



---



##### Table of Contents



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.






We are engaged in a highly competitive business and must
typically bid against competitors to obtain engineering,
construction and service contracts. In addition, an adverse
pricing environment, including price pressure by our competitors
could reduce the volume of contracts meeting our potential
margin criteria and negatively affect our net income.




Our success depends on attracting and retaining qualified
personnel in a competitive environment and on the ability of our
subcontractors to attract skilled labor.




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 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.




12



---



##### Table of Contents





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.




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









state-of ready-to










tm state-of


14



---



##### Table of Contents



The Industry in Which We Operate












|                         |  |                       
|------------------------ |  | ----------------------
|(BACKLOG 2005 PIE CHART) |  | (SALES 2005 PIE CHART)



| |                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------
| | Offshore SURF, Offshore Facilities: Revenues of
    1,798 million
    (Offshore SURF) and
    1,013 million
    (Offshore Facilities) in 2005



15



---



##### Table of Contents







| |                                                               
| | --------------------------------------------------------------
| | Onshore-Downstream: Revenues of
    2,318 million
    in 2005





| |                                                     
| | ----------------------------------------------------
| | Industries: Revenues of
    247 million
    in 2005





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





| |   |                                                                                                                                                                                                                                                                                                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | in an environment experiencing a strong recovery in investments,
    to consolidate leadership of the Group within the hydrocarbon
    sector by maintaining a steady balance between different
    business segments and geographical markets;                                                                                                
|
| |  | to lead the growth of the Offshore SURF (Subsea Umbilicals,
    Risers & Flowlines) markets in order to maintain our
    leading position, particularly in Brazil, the Gulf of Mexico,
    the Asia-Pacific region, the North Sea and West Africa;                                                                                             
|
| |  | to participate in the development of Offshore Platform markets
    concentrating on innovative platform solutions, which allows us
    to leverage our distinctive competences and expertise, in
    particular, with respect to the management of large scale
    projects and technologies (self-installing solutions,
    float-over, Spar);
|
| |  | to follow the development in the growing markets of liquefied
    natural gas (LNG) and ethylene where we are already
    a worldwide industry leader;                                                                                                                                                                                       
|
| |  | to take advantage of the anticipated upturn in construction
    projects for new refineries, including heavy oil processing, in
    which we have has extensive experience and numerable
    references; and                                                                                                                                   
|
| |  | finally, to support the development of industry sectors in
    priority markets.                                                                                                                                                                                                                                                               

Recent Major Acquisitions and Disposals




Disposal.


Merger with Coflexip.


16



---



##### Table of Contents





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.


Marianos.


Gulf Marine Fabricators.


Technip Portugal.




| |                  
| | -----------------
| | Business Segments





17



---



##### Table of Contents



Offshore SURF and Offshore Facilities Segments






| |              
| | -------------
| | Offshore SURF

  










| |                    
| | -------------------
| | Offshore Facilities

  






18



---



##### Table of Contents







Fixed Platforms. start-up


Floating and Semi-submersible Platforms.




Floating, Production, Storage and Offloading.




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





| |                                               
| | ----------------------------------------------
| | Offshore SURF and Offshore Facilities Strategy





19



---



##### Table of Contents





Onshore-Downstream Segment


 




Onshore Field Development.


Pipelines.


Natural Gas Treatment and Liquefaction. ®


® ® ®


Refineries.


20



---



##### Table of Contents







| |   |                                                                                           
| | - | ------------------------------------------------------------------------------------------
| |  | 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.                                                                            



Petrochemicals.


Ethylene.






Polyethylene/ Polypropylene.




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



2


21



---



##### Table of Contents







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







Industries Segment




 


Life Sciences.


Chemicals. state-of


Metals.


Aeronautic and Space Industries.


Cement.


22



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##### Table of Contents



Industrial Buildings. 7,000-seat




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





| |                    
| | -------------------
| | Industries Strategy





Segment and Geographical Breakdown of Revenues and Backlog




| |                    
| | -------------------
| | Revenues by Segment



|                    |  |                 |         |  |      |  |         | 
|------------------- |  | --------------- | ------- |  | ---- |  | ------- | 
|                    |  | Year ended      |        
|                    |  | December 31,    |        
|                    |  |                 |        
|                    |  | 2005            |         |  | 2004 | 
|                    |  |                 |         |  |      | 
|                    |  | (in  millions) |        
|Offshore SURF       |  |                 | 1,797.6 |  |      |  | 1,422.1 | 
|Offshore Facilities |  |                 | 1,013.4 |  |      |  | 1,066.6 | 
|Onshore-Downstream  |  |                 | 2,318.2 |  |      |  | 2,384.1 | 
|Industries          |  |                 | 246.9   |  |      |  | 268.1   | 
|Corporate           |  |                 |        |  |      |  |        | 
|                    |  |                 |         |  |      | 
|Total               |  |                 | 5,376.1 |  |      |  | 5,140.9 | 
|                    |  |                 |         |  |      | 

23



---



##### Table of Contents





| |                              
| | -----------------------------
| | Revenues by Geographic Region



|                             |  |                 |         |  |      |  |         | 
|---------------------------- |  | --------------- | ------- |  | ---- |  | ------- | 
|                             |  | Year ended      |        
|                             |  | December 31,    |        
|                             |  |                 |        
|                             |  | 2005            |         |  | 2004 | 
|                             |  |                 |         |  |      | 
|                             |  | (in  millions) |        
|Europe, Russia, Central Asia |  |                 | 1,382.9 |  |      |  | 1,278.9 | 
|Africa                       |  |                 | 1,258.4 |  |      |  | 1,285.1 | 
|Middle East                  |  |                 | 1,108.1 |  |      |  | 1,268.6 | 
|Americas                     |  |                 | 1,043.3 |  |      |  | 929.4   | 
|Asia-Pacific                 |  |                 | 583.4   |  |      |  | 378.9   | 
|                             |  |                 |         |  |      | 
|Total                        |  |                 | 5,376.1 |  |      |  | 5,140.9 | 
|                             |  |                 |         |  |      | 



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



non-U.S.












| |                   
| | ------------------
| | Backlog by Segment



24



---



##### Table of Contents





|                    |  |                |       |  |      |  |      | 
|------------------- |  | -------------- | ----- |  | ---- |  | ---- | 
|                    |  | As of          |      
|                    |  | December 31,   |      
|                    |  |                |      
|                    |  | 2005           |       |  | 2004 | 
|                    |  |                |       |  |      | 
|                    |  | (unaudited, in |      
|                    |  |  billions)    |      
|Offshore SURF       |  |                | 2.69  |  |      |  | 1.90 | 
|Offshore Facilities |  |                | 1.20  |  |      |  | 0.90 | 
|Onshore-Downstream  |  |                | 7.13  |  |      |  | 3.76 | 
|Industries          |  |                | 0.15  |  |      |  | 0.22 | 
|Corporate           |  |                |      |  |      |  |     | 
|                    |  |                |       |  |      | 
|Total               |  |                | 11.17 |  |      |  | 6.78 | 
|                    |  |                |       |  |      | 



| |                               
| | ------------------------------
| | Backlog by Geographical Region






Description of Our Operations




| |                            
| | ---------------------------
| | Contract Project Management





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





25



---



##### Table of Contents









| |                 
| | ----------------
| | Progressive LSTK





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





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

vis-à




26



---



##### Table of Contents





| |          
| | ---------
| | 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.

start-up start-up




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





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

27



---



##### Table of Contents







Chile:


Oman:


Brazil: 


Turkmenistan: 


Czech Republic: 


Uzbekistan:


Egypt:


Malaysia:


Iran:    


Quatar:


Russia: 






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





Basic engineering design.


28



---



##### Table of Contents





Front-end engineering design.


Detailed engineering.




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







business-to


29



---



##### Table of Contents



e-procurement e-procurement

















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





30



---



##### Table of Contents









| |   |                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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

start-up start-up. start-up 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; 
|
| |  | 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;                                                                                   

31



---



##### Table of Contents





| |   |                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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

in-depth




force
majeure




32



---



##### Table of Contents









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









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





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







| |                               
| | ------------------------------
| | Installation and Offshore SURF



33



---



##### Table of Contents



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.






34



---



##### Table of Contents







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



Flexible Pipe.


Drilling and Refining Applications Pipes.


Umbilicals. mid-2003.


Robotics.


Spar Manufacture.


35



---



##### Table of Contents



Floating, Production, Storage and Offloading.




Project Tenders and Competition








i.e.








36



---



##### Table of Contents







| |                                      
| | -------------------------------------
| | Offshore SURF and Offshore Facilities

Offshore SURF.


Offshore Facilities.


Design and Manufacturing of Flexible Pipe.


Umbilicals.


Robotics.




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



Technology




Research and Development




37



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##### Table of Contents





 






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





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



Human Resources






| |                       
| | ----------------------
| | An Expanding Workforce







38



---



##### Table of Contents







| |                                           
| | ------------------------------------------
| | An Active Policy of International Mobility









| |   |                                                                         
| | - | ------------------------------------------------------------------------
| |  | wherever possible, fill vacancies via internal recruitment;             
|
| |  | expand the possibilities for internal promotion;                        
|
| |  | encourage geographical and professional mobility;                       
|
| |  | foster development of a strong Group culture based on shared
    values;
|
| |  | promote the career development of individual employees; and             
|
| |  | encourage the sharing of best practices.                                





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

L.225-102




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





39



---



##### Table of Contents





|               |  |                         |        |  |      |  |        |      |  |  |        | 
|-------------- |  | ----------------------- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
|               |  | Year ended December 31, |       
|               |  |                         |       
|               |  | 2005                    |        |  | 2004 |  |        | 2003 | 
|               |  |                         |        |  |      |  |        |      | 
|Employees      |  |                         | 15,400 |  |      |  | 15,300 |      |  |  | 15,400 | 
|External staff |  |                         | 5,600  |  |      |  | 3,700  |      |  |  | 3,600  | 
|               |  |                         |        |  |      |  |        |      | 
|Total          |  |                         | 21,000 |  |      |  | 19,000 |      |  |  | 19,000 | 
|               |  |                         |        |  |      |  |        |      | 

|                             |  |                         |        |  |         |  |        |         |  |  |        | 
|---------------------------- |  | ----------------------- | ------ |  | ------- |  | ------ | ------- |  |  | ------ | 
|                             |  | Year ended December 31, |       
|                             |  |                         |       
|                             |  | 2005                    |        |  | 2004(1) |  |        | 2003(1) | 
|                             |  |                         |        |  |         |  |        |         | 
|Europe, Russia, Central Asia |  |                         | 11,500 |  |         |  | 10,500 |         |  |  | 10,450 | 
|Africa                       |  |                         | 300    |  |         |  | ffi    |         |  |  | ffi    | 
|                             |  |                         |        |  |         |  | 1,100  |         |  |  | 850    | 
|Middle East                  |  |                         | 1,280  |  |         |  |        |         |  |  |        | 
|                            
|Asia-Pacific                 |  |                         | 3,820  |  |         |  | 2,850  |         |  |  | 2,280  | 
|Americas                     |  |                         | 4,100  |  |         |  | 4,550  |         |  |  | 5,420  | 
|                             |  |                         |        |  |         |  |        |         | 
|Total                        |  |                         | 21,000 |  |         |  | 19,000 |         |  |  | 19,000 | 
|                             |  |                         |        |  |         |  |        |         | 






|    |                                                                                          
|--- | -----------------------------------------------------------------------------------------
|(1) | In 2003 and 2004, Africa and the Middle East were grouped as one
    geographical region.



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











Property, Plant and Equipment




40



---



##### 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                   |  | Leased/Owned
|Aix-en-Provence, France     |  | Offices                   |  | Co-owned    
|Rome, Italy                 |  | Offices                   |  | Owned       
|Zoetermeer, The Netherlands |  | Offices                   |  | Leased      
|Düsseldorf, Germany         |  | Offices                   |  | Leased      
|Kuala Lumpur, Malaysia      |  | Offices                   |  | Leased      
|Abu Dhabi, U.A.E.           |  | Offices                   |  | Leased      
|Vitória, 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                   |  | Owned       
|Perth, Australia            |  | Offices                   |  | Leased      
|Newcastle, UK               |  | Plant and Offices         |  | Leased/Owned
|Aberdeen, UK                |  | Plant and Offices         |  | Leased      
|Westhill, UK                |  | Offices                   |  | Leased      
|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 & Luanda, Angola     |  | Plant                     |  | Leased      
|York (Kirkbymoorside), UK   |  | Plant and Offices         |  | Leased      
|Hemiksem, Belgium           |  | Offices                   |  | Owned       
|Barcelona, Spain            |  | Offices                   |  | Leased      
|Nimes, France               |  | Offices                   |  | Leased      
|Lagos, Nigeria              |  | Offices                   |  | Leased      
|Port Harcourt, Nigeria      |  | Plant and Offices         |  | Leased/Owned
|Yokohama, Japan             |  | Offices                   |  | Leased      
|Shanghai & Tianjin, China   |  | Offices                   |  | Leased      
|Jakarta, Indonesia          |  | Offices                   |  | Leased      
|Bangkok, Thailand           |  | Offices                   |  | Leased      
|Baku, Azerbaijan            |  | Offices                   |  | Leased      
|Dubai, U.A.E.               |  | Offices                   |  | Leased      
|Bogota, Colombia            |  | Offices                   |  | Owned       
|Chennai, India              |  | Offices                   |  | Leased      






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

41



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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 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 a long-term lease agreement.





Dependence








42



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##### Table of Contents





|                                                                    |  |              |         |   |      |  |         |  
|------------------------------------------------------------------- |  | ------------ | ------- | - | ---- |  | ------- | -
|                                                                    |  | Year ended   |        
|                                                                    |  | December 31, |        
|                                                                    |  |              |        
|                                                                    |  | 2005         |         |   | 2004 | 
|                                                                    |  |              |         |   |      | 
|Total revenues                                                      |  |              | 5,376.1 |   |      |  | 5,140.9 |  
|Principal customers with the following percentages of
    revenues: |  |              |         |   |      |  |         |  
|Customer A                                                          |  |              | 6.7     | % |      |  | 8.3     | %
|Customer B                                                          |  |              | 11.6    | % |      |  | 7.4     | %
|Customer C                                                          |  |              | 4.4     | % |      |  | 7.2     | %
|Customer D                                                          |  |              | 6.0     | % |      |  | 4.5     | %
|Customer E                                                          |  |              | 3.0     | % |      |  | 7.7     | %

Pledged Assets




Insurance Coverage






Environmental Matters and Other Governmental Regulations




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





43



---



##### Table of Contents





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







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Directive 2003/87/ EC of October 13, 2003, establishing a
    scheme for greenhouse gas emission allowance trading within the
    Community has been transposed into national law by the European
    Union member states. Its provisions have been implemented since
    January 2005 through the allowance of
    CO2
    emission quotas to a number of industrial sites for the period
    2005-2007. The quotas will be revised for the period 2008-2012,
    however, the provisions of such update have not yet been decided;    
|
| |  | Directive 2004/35/ EC of April 21, 2004, establishing
    environmental liability with regard to the prevention and
    remedying of environmental damage should be transposed into
    national law before April 30, 2007 and generally provide
    for the polluter-pay principle; and                                                                                                                                                                                                                                              
|
| |  | The future regulation concerning the Registration, Evaluation,
    Authorization and Registration of Chemicals
    (REACH) has been adopted by the European
    Parliament at the reading on November 17, 2005. It could be
    adopted at the second reading in October 2006 and be implemented
    from April 2007. It would impose, in particular, on companies
    that manufacture and/or import chemicals to assess the risks
    resulting from the use of such chemicals and provide safety data
    regarding these products.



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









44



---



##### Table of Contents





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











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







45



---



##### Table of Contents









Corporate History




-33-1)


société anonyme statuts




46



---



##### Table of Contents



Organizational Chart








Item 4A.     Unresolved Staff
Comments




47



---



##### 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 IFRS,
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 Statement 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.


Note 36 to our consolidated financial statements
describes the principal differences between IFRS and
U.S. GAAP as they relate to us and reconciles our net
income and shareholders equity.




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





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





| |          
| | ---------
| | Year 2005









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

   




48



---



##### Table of Contents







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





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





percentage-of percentage-of






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



49



---



##### Table of Contents





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





| |                             
| | ----------------------------
| | Impairment tests of Goodwill







| |                         
| | ------------------------
| | Stock-Based Compensation







| |                       
| | ----------------------
| | Contingent Liabilities





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



| |                
| | ---------------
| | Inventory Costs



50



---



##### Table of Contents









| |                            
| | ---------------------------
| | Non-Monetary Asset Exchange









| |                     
| | --------------------
| | Share-Based Payments











| |                                         
| | ----------------------------------------
| | Accounting Changes and Error Corrections



51



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##### Table of Contents









| |                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------
| | Accounting by an Investor for its Proportionate Share of
    Other Comprehensive Income of an Investee Accounted for under
    the Equity Method







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









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





52



---



##### Table of Contents







Outlook for 2006






| |   |                                                             
| | - | ------------------------------------------------------------
| |  | an annual operating income margin ratio in excess of 5%; and
|
| |  | annual revenues of about
    6.8 billion.                  














Recent Developments







53



---



##### Table of Contents







| |   |                                                                                                                                                                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 11,627 million
    in backlog for the period ended March 31, 2006, an increase
    of 61.8% over the
    7,184 million
    recorded for the period ended March 31, 2005;                                                                                                      
|
| |  | 1,574 million
    in revenues, an increase of 31.1% compared to the first quarter
    of 2005 where we recorded
    1,201 million
    in revenues;                                                                                                                            
|
| |  | 54 million
    in operating income, including a capital gain of
    22 million
    related a sale of assets in the U.S., an increase of 7.1%
    compared to
    50 million
    during the first quarter of 2005;                                                            
|
| |  | net income of
    25.3 million
    in net income, a 16.6% improvement over the
    21.7 million
    recorded in the first quarter of 2005;                                                                                                                                    
|
| |  | fully diluted earnings per share of
    0.31 per
    share, an improvement of 22.6% compared to the
    0.25 per
    share recorded in the first quarter of 2005 after adjustment to
    take into account the
    4-for-1 share split
    which occurred on May 13, 2005; and
|
| |  | fully diluted earnings per ADS of U.S.$0.38 per share, a
    22.6% increase from the U.S.$0.31 per ADS recorded in the
    first quarter of 2005 after adjustment to take into account the
    4-for-1 share split
    which occurred on May 13, 2005.                          

Results of Operations for the Year Ended December 31,
2005, Compared to the Year Ended December 31, 2004




| |         
| | --------
| | Revenues

 


Backlog.  


   


 


54



---



##### Table of Contents





 




| |                    
| | -------------------
| | Revenues by Segment

Offshore SURF.  


Offshore Facilities.  


Onshore-Downstream.  


Industries.  




| |                            
| | ---------------------------
| | Revenues by Geographic Area

Europe, Russia, Central Asia.  


Africa.   


55



---



##### Table of Contents



Middle East.   


Asia-Pacific.  


Americas.  




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

    




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

 




| |                                 
| | --------------------------------
| | Selling and Administrative Costs

 




| |                                    
| | -----------------------------------
| | Other Operating Income and Expenses

 




| |                              
| | -----------------------------
| | Income/(Loss) from Operations



 


Income/(Loss) from Operations by Segment (operating
margin).


 


56



---



##### Table of Contents



 


 


  start-up


 


Income/ (Loss) from Operations by Geographic Region.


|                                                   |  |                 |        |   |      |  |       |  
|-------------------------------------------------- |  | --------------- | ------ | - | ---- |  | ----- | -
|                                                   |  | 2005            |        |   | 2004 | 
|                                                   |  |                 |        |   |      | 
|                                                   |  | (in  millions) |       
|Income/(Loss) from Operations by Geographic Region |  |                 |        |   |      |  |       |  
| Europe, Russia, Central Asia                     |  |                 | 162.2  |   |      |  | 84.5  |  
| Africa                                           |  |                 | (42.5  | ) |      |  | 79.3  |  
| Middle East                                      |  |                 | 50.5   |   |      |  | 17.9  |  
| Asia-Pacific                                     |  |                 | 27.2   |   |      |  | 38.8  |  
| Americas                                         |  |                 | 33.6   |   |      |  | 13.1  |  
|                                                   |  |                 |        |   |      | 
|Total                                              |  |                 | 231.0  |   |      |  | 233.6 |  
|Less:                                              |  |                 |        |   |      |  |       |  
|Financial Income                                   |  |                 | 20.0   |   |      |  | 14.3  |  
|Financial Expense                                  |  |                 | (108.8 | ) |      |  | (80.7 | )
|Income of Equity Affiliates                        |  |                 | 1.3    |   |      |  | 1.2   |  
|Less:                                              |  |                 |        |   |      |  |       |  
|Income Tax                                         |  |                 | (43.5  | ) |      |  | (54.2 | )
|Income/ (Loss) from Discontinued Operations        |  |                 | (5.0   | ) |      |  |      |  
|Minority Interests                                 |  |                 | (1.7   | ) |      |  | (2.4  | )
|Net Income (Shareholders of Parent Company)        |  |                 | 93.3   |   |      |  | 111.8 |  

Europe, Russia, Central Asia,  


Africa,  


Middle East,  


57



---



##### Table of Contents



Asia-Pacific,   starting-up


Americas,  




| |                 
| | ----------------
| | Financial Result

  




| |                                                                               
| | ------------------------------------------------------------------------------
| | Share of Income/(Loss) of Associates Accounted for Using
    the Equity Method

 




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

  










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

 




| |                  
| | -----------------
| | Net Income/(Loss)

 


Cash Flows




| |                      
| | ---------------------
| | 2005 compared to 2004

Cash flow from operating activities.  


     


58



---



##### Table of Contents



   


Cash flow from investing activities.  


 


 


   


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


Liquidity and Capital Resources




    


59



---



##### Table of Contents





|                                                  |  |                 |          |   |      |  |          |  
|------------------------------------------------- |  | --------------- | -------- | - | ---- |  | -------- | -
|                                                  |  | December 31,    |         
|                                                  |  |                 |         
|                                                  |  | 2005            |          |   | 2004 | 
|                                                  |  |                 |          |   |      | 
|                                                  |  | (in  millions) |         
|Construction Contracts  Amounts Due From Clients |  |                 | 585.0    |   |      |  | 400.6    |  
|Inventories                                       |  |                 | 101.0    |   |      |  | 87.2     |  
|Advances Paid to Suppliers                        |  |                 | 266.9    |   |      |  | 249.3    |  
|Trade Receivables                                 |  |                 | 440.0    |   |      |  | 349.0    |  
|Current Income Tax                                |  |                 | 51.8     |   |      |  | 98.5     |  
|Other Current Receivables                         |  |                 | 283.6    |   |      |  | 461.3    |  
|Less:                                             |  |                 |          |   |      |  |          |  
|Current Provisions                                |  |                 | (133.4   | ) |      |  | (121.5   | )
|Advances Received                                 |  |                 | (1,636.9 | ) |      |  | (915.6   | )
|Construction Contracts  Amounts Due From Clients |  |                 | (35.5    | ) |      |  | (33.1    | )
|Trade Payables                                    |  |                 | (978.1   | ) |      |  | (852.5   | )
|Current Income Tax                                |  |                 | (34.9    | ) |      |  | (18.7    | )
|Other Current Payables                            |  |                 | (707.1   | ) |      |  | (771.7   | )
|                                                  |  |                 |          |   |      | 
|Working Capital Requirements                      |  |                 | (1,797.6 | ) |      |  | (1,067.2 | )
|                                                  |  |                 |          |   |      | 

     


    


    


 


 


60



---



##### Table of Contents



 














   


     


        


        


61



---



##### Table of Contents



Contractual Obligations and Other Commitments




|                        |  |               |         |                 |                 |  |       |           |  |  |           |  |  |            |      |  |  |  |       | 
|----------------------- |  | ------------- | ------- | --------------- | --------------- |  | ----- | --------- |  |  | --------- |  |  | ---------- | ---- |  |  |  | ----- | 
|                        |  | Balance as of |         |                 | Payments due in | 
|                        |  | December 31,  |         |                 |                 | 
|Contractual Obligations |  | 2005          |         |                 | 2006            |  |       | 2007-2008 |  |  | 2009-2010 |  |  | Thereafter |     
|                        |  |               |         |                 |                 |  |       |           |  |  |           |  |  |            |     
|                        |  |               |         | (in  millions) |                
|Short-Term Debt         |  |               | 214.4   |                 |                 |  | 214.4 |           |  |  |          |  |  |            |     |  |  |  |      | 
|Long-Term Debt          |  |               | 1,305.3 |                 |                 |  |      |           |  |  | 651.2     |  |  |            | 0.7  |  |  |  | 653.4 | 
|Operating Leases        |  |               | 356.0   |                 |                 |  | 48.1  |           |  |  | 81.9      |  |  |            | 73.8 |  |  |  | 152.2 | 
|Capital Leases          |  |               |        |                 |                 |  |      |           |  |  |          |  |  |            |     |  |  |  |      | 



|                                                          |  |              |         |                 |          |  |         |           |  |  |           |  |  |            |      |  |  |  |   | 
|--------------------------------------------------------- |  | ------------ | ------- | --------------- | -------- |  | ------- | --------- |  |  | --------- |  |  | ---------- | ---- |  |  |  | - | 
|                                                          |  | Total as of  |         |                 | Payments | 
|                                                          |  | December 31, |         |                 |          | 
|Other Commitments (financial instruments)                 |  | 2005*        |         |                 | 2006     |  |         | 2007-2008 |  |  | 2009-2010 |  |  | Thereafter |     
|                                                          |  |              |         |                 |          |  |         |           |  |  |           |  |  |            |     
|                                                          |  |              |         | (in  millions) |         
|Buy currency, sell national currency (forwards and swaps) |  |              | 139.4   |                 |          |  | 86.4    |           |  |  | 53.0      |  |  |            |     |  |  |  |  | 
|Sell currency, buy national currency (forwards and swaps) |  |              | 1,553.0 |                 |          |  | 1,009.2 |           |  |  | 533.5     |  |  |            | 10.3 |  |  |  |  | 
|Sell/ Buy foreign currencies                              |  |              | 661.4   |                 |          |  | 545.4   |           |  |  | 114.4     |  |  |            | 1.6  |  |  |  |  | 
|Interest rate instruments                                 |  |              |        |                 |          |  |        |           |  |  |          |  |  |            |     |  |  |  |  | 






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

Off-Balance Sheet Financing Arrangements




|                                  |  |             |          |                 |          |  |         |           |  |  |           |  |  |            |          |  |  |  |         | 
|--------------------------------- |  | ----------- | -------- | --------------- | -------- |  | ------- | --------- |  |  | --------- |  |  | ---------- | -------- |  |  |  | ------- | 
|                                  |  | Total as of |          |                 | Payments | 
|                                  |  | year end    |          |                 |          | 
|                                  |  | 2005        |          |                 | 2006     |  |         | 2007-2008 |  |  | 2009-2010 |  |  | Thereafter |         
|                                  |  |             |          |                 |          |  |         |           |  |  |           |  |  |            |         
|                                  |  |             |          | (in  millions) |         
|Foreign exchange rate instruments |  |             | 2,353.8  |                 |          |  | 1,641.0 |           |  |  | 700.9     |  |  |            | 11.9     |  |  |  |        | 
|Interest rate instruments         |  |             |         |                 |          |  |        |           |  |  |          |  |  |            |         |  |  |  |        | 
|Parent company guarantees         |  |             | 23,234.9 |                 |          |  | 4,672.9 |           |  |  | 4,712.9   |  |  |            | 12,907.0 |  |  |  | 942.1   | 
|Others commitments given          |  |             | 2,817.0  |                 |          |  | 852.1   |           |  |  | 851.8     |  |  |            | 853.6    |  |  |  | 259.5   | 
|Total commitments given           |  |             | 26,051.9 |                 |          |  | 5,525.0 |           |  |  | 5,564.7   |  |  |            | 13,760.6 |  |  |  | 1,201.6 | 
|Total commitments received        |  |             | 675.1    |                 |          |  | 219.1   |           |  |  | 308.5     |  |  |            | 131.8    |  |  |  | 15.9    | 

Guarantees Related to Contracts




62



---



##### Table of Contents





Parent Guarantees to Clients




Other Material Financial Elements






63



---



##### 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




64



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##### Table of Contents











| |   |                                                                                                                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | appoint the Chairman, the Chief Executive Officer and the
    executive vice presidents (directeurs généraux
    délégués);                                                                                                                                               
|
| |  | define our strategy with the assistance of the Strategic
    Committee, and discuss the major transactions planned by the
    Group;                                                                                                                                      
|
| |  | remain informed of all important events concerning our running
    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 our securities are
    traded; and
|
| |  | authorize the regulated agreements and the sureties, guarantees
    and warranties given by us.                                                                                                                                                                           





jetons de présence




65



---



##### Table of Contents





|                           |  |             |      |  |                         |                                    |         |  |      | 
|-------------------------- |  | ----------- | ---- |  | ----------------------- | ---------------------------------- | ------- |  | ---- | 
|                           |  | Initial     |      |  |                         |                                    | Term    | 
|Name, Age, Citizenship(1)  |  | Appointment |      |  | Responsibility on Board |                                    | Expires | 
|                           |  |             |      |  |                         |                                    |         | 
|Daniel Valot (61)          |  |             | 1996 |  |                         | Chairman of the Board and Director |         |  | 2006 | 
|Olivier Appert (57)        |  |             | 2003 |  |                         | Director                           |         |  | 2006 | 
|Roger Cairns (63)          |  |             | 2001 |  |                         | Director                           |         |  | 2006 | 
|(United Kingdom)           |  |             |      |  |                         |                                    |         |  |      | 
|Miguel Caparros (62)       |  |             | 1995 |  |                         | Director                           |         |  | 2006 | 
|(Spain)                    |  |             |      |  |                         |                                    |         |  |      | 
|Jacques Deyirmendjian (61) |  |             | 2000 |  |                         | Director                           |         |  | 2006 | 
|Jean-Pierre Lamoure (57)   |  |             | 1998 |  |                         | Director                           |         |  | 2006 | 
|Daniel Lebègue (62)        |  |             | 2003 |  |                         | Director                           |         |  | 2006 | 
|Roger Milgrim (69)         |  |             | 2001 |  |                         | Director                           |         |  | 2006 | 
|(United States)            |  |             |      |  |                         |                                    |         |  |      | 
|Rolf-Erik Rolfsen (65)     |  |             | 2001 |  |                         | Director                           |         |  | 2006 | 
|(Norway)                   |  |             |      |  |                         |                                    |         |  |      | 
|Pierre Vaillaud (71)       |  |             | 1992 |  |                         | Director                           |         |  | 2006 | 
|Bruno Weymuller (57)       |  |             | 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 2004;      
|
| |  | examining the reports and the resolutions to be proposed to the
    shareholders meeting and setting an agenda;   
|
| |  | reviewing the list of independent directors;                                                                       
|
| |  | evaluating the functioning of the Board of Directors and its
    committees;                                       
|
| |  | examining the consolidated accounts of December 31, 2004 in
    accordance with IFRS Standards;                    
|
| |  | responding to written questions by a shareholder before the
    shareholders meeting;                             
|
| |  | reviewing the reports of the Strategic Committee;                                                                  
|
| |  | examining the proposed disposal of a company within the Group;                                                     
|
| |  | approving our Values and our Ethics Charter, Social Charter,
    Environment Charter and Health and Safety Charter;
|
| |  | approving in principle the construction of a new diving support
    vessel;                                        
|
| |  | approving the contemplated disposal of Gulf Marine Fabricators
    to Gulf Island Fabricators;                     
|
| |  | approving the principles of cooperation with Subsea 7;                                                             

66



---



##### Table of Contents





| |   |                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | reviewing quarterly and half-year accounts and reports of
    activity;                                                                                                                  
|
| |  | harmonizing the rules of the stock option plans of the Group;                                                                                                                            
|
| |  | approving our commitment to the implementation of a fixed
    contribution supplementary retirement plan for the Chairman and
    Chief Executive Officer;                               
|
| |  | recommending the budget for 2006 and a three-year plan;                                                                                                                                  
|
| |  | renewing the powers of the Chairman of our Board of Directors
    for the financial year 2006 in terms of guaranties, sureties and
    warranties;                                       
|
| |  | approving a subscription share option plan; and                                                                                                                                          
|
| |  | setting the pre-approved amounts, by category, in relation to
    assignments which will be carried out in 2006 by the statutory
    auditors and members of their international network.



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

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


Olivier Appert. Institut Français du
Pétrole Compagnie
Générale de Géophysique Institut de Physique du Globe de Paris Ecole
Polytechnique Ecole des Mines de Paris.


Roger Cairns.


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


Jacques Deyirmendjian.


67



---



##### Table of Contents



Institut
Français du Pétrole Ecole Polytechnique de Paris Ecole Nationale
de la Statistique et de lAdministration Economique


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


Daniel Lebègue. Institut dEtudes
Politiques de Lyon Institut du Développement
Durable et des Relations Internationales Caisse des Dépots et
Consignations Institut 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.


68



---



##### Table of Contents



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 us 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 our accounts and the annual and interim consolidated
    accounts prior to the Board of Directors review by
    remaining informed of our 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 our Chairman and Chief Financial Officer, 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, the matters related
    to the auditing of accounts as well as the documents sent by
    employees on an anonymous and confidential basis which would
    bring into question the accounting practices or auditing
    procedures (we are presently reviewing our ability to implement
    such procedures in view of, among other things, French and
    European data protection and labor law sensitivities); and
|
| |  | advising and providing, in a general manner, all appropriate
    recommendations on the above issues.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              



69



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jetons de présence










| |   |                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | yearly and quarterly consolidated results releases and financial
    statements in accordance with IFRS Standards and review of the
    impact of certain IFRS Standards;
|
| |  | the 2005 schedule for the implementation of section 404 of
    the Sarbanes-Oxley Act;                                                                                   
|
| |  | certain contracts requiring particular attention and oustanding
    tax audits;                                                                                          
|
| |  | matters relating to indebtness and cash flow issues as well as
    Sarbanes-Oxley provisions in relation to internal controls;                                           
|
| |  | the 2004 annual report on
    Form 20-F and its
    approval for filing with the SEC;                                                                                    
|
| |  | the implementation of whistleblowing procedures taking into
    account French and European data protection and labor law
    sensitivities;                             
|
| |  | financial simulations for the payment of the OCEANE;                                                                                                                     
|
| |  | the impact of IFRS Standards 32 and 39; and                                                                                                                              
|
| |  | matters relating to exchange risk coverage, off balance sheet
    commitments and ROCE.                                                                                  



Nominations and Remunerations Committee.




| |   |                                                                                                                                                                                                                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | to recommend to the board of directors the people that should be
    nominated as directors, Chairman, Chief Executive Officer
    (directeur général) and other executive vice
    presidents (directeurs généraux
    délégués), as necessary, as well as to
    prepare our corporate governance rules; and    
|
| |  | to 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, Chief
    Executive Officer, other executive vice presidents, as
    appropriate, and to prepare a report on the foregoing.





| |   |                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------
| |  | presenting to the Board of Directors recommendations on the
    composition of the Board of Directors and its committees;

70



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| |   |                                                                                                                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | proposing to the Board of Directors, on an annual basis, a list
    of directors qualified as independent directors
    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 (directeur
    général) and other executive vice presidents,
    (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 executive vice presidents, 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 executive vice
    presidents, (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                                                                                                                                    
|
| |  | 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 in accordance with rules and
    recommendations applicable in France and on the regulated
    markets where our securities are traded;
|
| |  | examined the annual replacement plan review and the situation
    following the last annual operation;                                                                                                                               
|
| |  | studied the succession plan for the members of the Management
    Committees of the Group;                                                                                                                                           
|
| |  | examined our draft report with respect to the remuneration of
    executives for the annual report;                                                                                                                                  
|
| |  | examined the allocation system of directors fees
    (jetons de présence) for 2005;                                                                                                                                                 
|
| |  | examined the situation of our Chairman and Chief Executive
    Officer;                                                                                                                                                              

71



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| |   |                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | recommended to the Board of Directors the remuneration of our
    Chairman and Chief Executive Officer (variable portion for 2004,
    the base remuneration for 2005 and the criteria for determining
    the variable part of 2005);
|
| |  | examined the remuneration for the five members of our senior
    management (variable portion for 2004, base remuneration for
    2005 and criteria for determining the variable part of 2005);                                       
|
| |  | authorized the implementation of a supplementary retirement plan
    for management positions;                                                                                                                                        
|
| |  | examined a stock option plan; and                                                                                                                                                                                                     
|
| |  | recommended to the Board of Directors the allocation of stock
    options for our Chairman and Chief Executive Officer.                                                                                                               



Strategic Committee.




| |   |                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | review the global strategy of the Group as proposed by our
    Chairman and Chief Executive Officer;                                                               
|
| |  | review the capital expenditure and investment budget of the
    Group;                                                                                             
|
| |  | examine any major asset acquisition or disposal and associated
    financing and allocation; and                                                                   
|
| |  | review any transaction outside the ordinary course of business
    susceptible of serious business risk, presented by our Chairman
    and Chief Executive Officer.

jetons
de présence










| |   |                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | markets and competitions;                                                                                                                                                                                                                  
|
| |  | feasibility of the construction of a new diving support vessel;                                                                                                                                                                            
|
| |  | review of certain strategic options (disposal of Gulf Marine
    Fabricators assets, disposal of 10% of Angoflex Ltda. and the
    set up of a joint venture between us and Subsea 7 for the
    Offshore SURF market in Asia-Pacific); and
|
| |  | detailed review of the 2006 budget for the Group and the
    three-year plan.                                                                                                                                                              



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



72



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





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

  jetons de présence


   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
    88,000 for the
    year 2005, taking into account the attendance rate of the
    participants since January 1, 2005, is divided among the
    directors (other than the Chairman) at the fixed

73



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| |   |                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------
| |   | amount of
    800 per
    session of the board and
    500 per
    session 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 2005 |       | Compensation |          
|                                          |       |              |          
|D. Valot                                  |       |             | 1,076,660 | (1)      
|O. Appert                                 |       |             | 17,100    |          
|R. Cairns                                 |       |             | 25,500    |          
|M. Caparros                               |       |             | 29,800    |          
|J. Deyirmendjian                          |       |             | 18,600    |          
|J.P. Lamoure                              |       |             | 14,700    |          
|D. Lebègue                                |       |             | 27,600    |          
|R. Milgrim                                |       |             | 40,800    |          
|R.E. Rolfsen                              |       |             | 27,100    |          
|P. Vaillaud                               |       |             | 21,300    |          
|B. Weymuller                              |       |             | 16,200    |          
|                                          | Total |              |          | 1,315,360 | 






|    |                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Mr. Valot was paid a fixed salary of
    609,000 in 2005,
    received a bonus of
    464,000 in 2005
    in respect of his performance in the 2004 fiscal year and use of
    a company car valued at
    3,660.

jetons de présence


Share Ownership




Options




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##### Table of Contents





|                                                                                                      |  |                |               |     |              |           |               |              |  |  |               |  |  |              |               |  |              |  |               |  |  |  |               | 
|----------------------------------------------------------------------------------------------------- |  | -------------- | ------------- | --- | ------------ | --------- | ------------- | ------------ |  |  | ------------- |  |  | ------------ | ------------- |  | ------------ |  | ------------- |  |  |  | ------------- | 
|                                                                                                      |  | 1999/2001 Plan |               |     | 2002 Plan    |           |               | 2005 Plan    | 
|                                                                                                      |  |                |               |     |              |           |               |              | 
|                                                                                                      |  |                |               |     |              | Tranche B |               |              | 
|                                                                                                      |  | 2000 tranche   |               |     | 2000 tranche |           |               | Tranche A    |  |  | Tranche B     |  |  | Remainder    |               |  | Tranche A    | 
|                                                                                                      |  | Subscription   |               |     | Purchase     |           |               | Subscription |  |  | Subscription  |  |  | Subscription |               |  | Subscription | 
|                                                                                                      |  | Options        |               |     | Options      |           |               | Options      |  |  | Options       |  |  | Options      |               |  | Options      | 
|                                                                                                      |  |                |               |     |              |           |               |              |  |  |               |  |  |              |               |  |              | 
|Date of shareholders meeting                                                                         |  |                | Apr. 28, 2000 |     |              |           | Apr. 28, 2000 |              |  |  | Aug. 24, 2001 |  |  |              | June 20, 2002 |  |              |  | June 20, 2002 |  |  |  | Apr. 29, 2005 | 
|Date of board resolution                                                                              |  |                | Dec. 14, 2000 |     |              |           | Dec. 14, 2000 |              |  |  | Dec. 9, 2002  |  |  |              | Dec. 9, 2002  |  |              |  | May 21, 2003  |  |  |  | Dec. 14, 2005 | 
|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 |  |              |  | 5,200         |  |  |  |               | 
|Number of options allocated                                                                           |  |                | 493,028       | (1) |              |           | 139,576       | (1)          |  |  | 234,080       |  |  |              | 462,920       |  |              |  | 5,200         |  |  |  | 965,213       | 
|Total number of shares available for subscription/ purchase(3)                                        |  |                | 1,602,712     |     |              |           | 558,304       |              |  |  | 763,320       |  |  |              | 1,772,080     |  |              |  | 20,800        |  |  |  | 965,213       | 
|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             |  |  |  | 602,000       | 
|Of which: Number of directors and senior management concerned                                         |  |                | 17            |     |              |           | 17            |              |  |  | 4             |  |  |              | 16            |  |              |  | 0             |  |  |  | 12            | 
|Vesting date for exercise of options(4)                                                               |  |                | Dec. 15, 2003 |     |              |           | Dec. 15, 2003 |              |  |  | Dec. 10, 2005 |  |  |              | Dec. 10, 2005 |  |              |  | May 22, 2006  |  |  |  | Dec. 15, 2009 | 
|Expiration date(5)(6)                                                                                 |  |                | Dec. 14, 2008 |     |              |           | Dec. 14, 2008 |              |  |  | Dec. 9, 2008  |  |  |              | Dec. 9, 2008  |  |              |  | May 21, 2009  |  |  |  | Dec. 14, 2011 | 
|Subscription/purchase price per Share                                                                 |  |                | 143.24       |     |              |           | 143.24       |              |  |  | 71.95        |  |  |              | 71.95        |  |              |  | 73.98        |  |  |  | 48.18        | 
|Number of shares subscribed/ purchased at 12/31/05                                                    |  |                | 937,096       |     |              |           | 558,304       |              |  |  | 279,360       |  |  |              | 747,880       |  |              |  | 0             |  |  |  | 0             | 
|Shares remaining available for subscription/exercise at 12/31/05                                      |  |                | 665,616       |     |              |           | 0             |              |  |  | 483,960       |  |  |              | 1,024,200     |  |              |  | 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.                                                                                                                                                                                                                            
|   
|(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.



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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)    |  |              | 666,452       |  |              |  | 377,200      |              |  |  | 424,808       |  |  |          | 504,340       |  |  |  | 137,660       | 
|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 12/31/05                |  |              | 605,024       |  |              |  | 212,820      |              |  |  | 324,628       |  |  |          | 99,140        |  |  |  | 137,660       | 
|Shares remaining available for subscription/purchase at 12/31/05 |  |              | 61,428        |  |              |  | 164,380      |              |  |  | 100,180       |  |  |          | 405,200       |  |  |  | 0             | 






|    |                                                                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Date of the Coflexip shareholders meeting which has
    authorized the Coflexip shares subscription/purchase option plan.                             
|   
|(2) | Date of the Coflexip Board of Directors which 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.


Options by non-director wage earners.


|                                                                                                                                                                                                                                                    |  |           |         |          |                |           |               |               |  |  |            |  |  |      |                   |  |  |  |                      | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------- | ------- | -------- | -------------- | --------- | ------------- | ------------- |  |  | ---------- |  |  | ---- | ----------------- |  |  |  | -------------------- | 
|                                                                                                                                                                                                                                                    |  |           |         |          |                | Number of |               |               |  |  |           
|                                                                                                                                                                                                                                                    |  |           |         |          |                | Shares    |               |               |  |  |           
|Subscription or purchase options granted                                                                                                                                                                                                            |  |           |         | Exercise |                |           | Available for |               |  |  |            | 
|to the 10 non-director wage earners and                                                                                                                                                                                                             |  | Number of |         |          | Price/Purchase |           |               | Subscription/ |  |  | Expiration |  |  |     
|the number of options exercised by them                                                                                                                                                                                                             |  | Options   |         |          | per Option     |           |               | Purchase      |  |  | Date       |  |  | Plan |                  
|                                                                                                                                                                                                                                                    |  |           |         |          |                |           |               |               |  |  |            |  |  |      |                  
|Options granted in 2005 by the issuer and any company within its
    scope of assigning options, to the 10 non-director wage earners
    of the issuer and any company within its scope, who were granted
    overall the highest amount of options |  |           | 450,000 | (*)      |                |           | 48.18        |               |  |  | 450,000    |  |  |      | December 14, 2011 |  |  |  | Plan 2005 Tranche  A | 
|Options granted by the issuer and the above-mentioned companies
    exercised                                                                                                                                                                       |  |           | 4,000   |          |                |           | 109.96       |               |  |  | 16,000     |  |  |      | June 6, 2008      |  |  |  | Plan CSO 9-3         | 
|in 2005 by the 10 non-director wage                                                                                                                                                                                                                 |  |           | 65,000  |          |                |           | 143.24       |               |  |  | 260,000    |  |  |      | December 14, 2008 |  |  |  | Plan 1999/2001       | 
|earners of the issuer and these companies,                                                                                                                                                                                                          |  |           |         |          |                |           |               |               |  |  |            |  |  |      |                   |  |  |  | 2nd tranche 2000     | 
|who were granted overall the highest number of shares available
    for purchase or subscription                                                                                                                                                    |  |           | 80,550  |          |                |           | 71.95        |               |  |  | 322,200    |  |  |      | December 9, 2008  |  |  |  | Plan 2002 Tranche  A | 

76



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|    |                                                                                                                                                                                                                                                                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(*) | The exercise of subscription options assigned by the Board of
    Directors on December 14, 2005 will be linked to the
    satisfactory performance by us for our shareholders for the
    2005/2008 period. This performance will be measured by the
    development of our fully diluted earnings per share
    (EPS) compared to the representative competitive
    average for the Group.

2005 Executive Stock Option Plan.




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



77



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##### Table of Contents






Item 7.     Major Shareholders
and Related Party Transactions


Major Shareholders


statuts Statuts




|                |  |                         |            |        |             |  |        |        |  |  |        |  
|--------------- |  | ----------------------- | ---------- | ------ | ----------- |  | ------ | ------ |  |  | ------ | -
|                |  | As of February 28, 2006 |           
|                |  |                         |           
|                |  |                         |            | % of   |             |  | % of   |       
|                |  |                         |            | Shares |             |  | Voting |       
|Shareholder     |  | Shares                  |            |        | Outstanding |  |        | Rights | 
|                |  |                         |            |        |             |  |        |        | 
|IFP             |  |                         | 3,088,212  |        |             |  | 3.12   | %      |  |  | 6.05   | %
|Employees       |  |                         | 1,851,565  |        |             |  | 1.87   | %      |  |  | 2.97   | %
|Treasury shares |  |                         | 1,494,148  |        |             |  | 1.52   | %      |  |  | 0.00   | %
|Other           |  |                         | 92,440,247 |        |             |  | 93.49  | %      |  |  | 90.98  | %
|Total           |  |                         | 98,874,172 |        |             |  | 100.00 | %      |  |  | 100.00 | %



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





Related Party Transactions




 




78



---



##### Table of Contents






Item 8.     Financial
Information


Consolidated Statements and Other Financial Information




Dividend Policy






 









|                                  |  |            |      |              |                 |  |      |           |              |  |                 |  |  |  |      |    
|--------------------------------- |  | ---------- | ---- | ------------ | --------------- |  | ---- | --------- | ------------ |  | --------------- |  |  |  | ---- | ---
|                                  |  |            |      | Dividend per |                 |  |      |           | Dividend per | 
|                                  |  |            |      | ADS          |                 |  |      |           | Share        | 
|                                  |  | Dividend   |      |              | Including       |  |      | Dividend  |              |  | Including       | 
|Year to which Dividend Related(1) |  | per ADS(2) |      |              | Avoir fiscal(3) |  |      | per Share |              |  | Avoir fiscal(3) | 
|                                  |  |            |      |              |                 |  |      |           |              |  |                 | 
|                                  |  | U.S.$      |      |              | U.S.$           |  |      |          |              |  |                | 
|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 | (4)
|2005                              |  |            | 1.10 |              |                 |  | 1.10 | (5)       |              |  | 0.92            |  |  |  | 0.92 | (5)

79



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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Pursuant to French law, payment of dividends must be made within
    nine months following the end of the fiscal year to which they
    relate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(2) | Based on the number of our 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 paid in 2005
    have been translated from the euro amount per share into dollars
    per ADS at the rate of U.S.$1.20 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.                                                                                                                                                                                                                                                                                                                                                                                                           
|   
|(3) | A French tax credit (known as the avoir fiscal) was
    attached to distributions of dividends made before
    December 31, 2004. Its amount ranged from 10% to 50% of the
    dividends depending on the nature of the recipient. For
    simplification purposes, the avoir fiscal included in the
    dividend per share in the chart above were calculated at the
    rate of 50%, which was the rate applicable to individuals. From
    2005 on, the avoir fiscalhas been abolished and
    partially replaced by a French tax credit benefiting only to
    individuals. Such French tax credit is equal to 50% of the
    dividends distributed, but capped at
    230 or
    115 per
    year depending on the marital status of the recipient. Any
    payment equivalent to French tax credits, less applicable French
    withholding tax, is made only following receipt by the French
    Tax Administration of a claim for such payment filed by
    shareholders entitled to such payment, and is generally not
    expected to be paid before 12 months after the filing of
    such claim, and after the close of the calendar year in which
    the respective dividends are paid. See Item 10.
    Additional Information  Taxation  French
    Taxation of Non-Resident Investors and Item 10.
    Additional Information  Taxation of
    U.S. Investors.
|   
|(4) | As mentioned under (3) above, dividends paid by French
    companies since 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 to
    this portion of dividends paid in 2004 the avoir fiscal rate for
    individuals, i.e., 50%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   
|(5) | On May 13, 2005, pursuant to a share split, the number of
    our outstanding shares was multiplied by four.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

statuts statuts


statuts


 


Legal Proceedings




80



---



##### Table of Contents





| |               
| | --------------
| | ITP Litigation

Tribunal de Commerce de Versailles pipe-in Tribunal de Commerce de Paris




| |                  
| | -----------------
| | SEAMEC Litigation







Pending Investigation










81



---



##### Table of Contents







Significant Changes







Item 9.     The Offer and
Listing


Price History of Shares


tm


F-6.




|                  |  |                 |       |  |               |  |       |      |  |  |       |  |  |  |       | 
|----------------- |  | --------------- | ----- |  | ------------- |  | ----- | ---- |  |  | ----- |  |  |  | ----- | 
|                  |  | Price per Share |       |  | Price per ADS | 
|                  |  | in (1)         |       |  | in U.S.$(2)   | 
|                  |  |                 |       |  |               | 
|Calendar Period   |  | High            |       |  | Low           |  |       | High |  |  | Low   | 
|                  |  |                 |       |  |               |  |       |      |  |  |       | 
|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 | 

82



---



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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                     |  |                 | 34.00 |  |               |  | 30.33 |      |  |  | 45.52 |  |  |  | 39.60 | 
|Second Quarter                    |  |                 | 39.35 |  |               |  | 31.15 |      |  |  | 47.49 |  |  |  | 40.70 | 
|Third Quarter                     |  |                 | 50.65 |  |               |  | 38.25 |      |  |  | 61.93 |  |  |  | 46.58 | 
|Fourth Quarter                    |  |                 | 51.90 |  |               |  | 42.10 |      |  |  | 60.78 |  |  |  | 49.31 | 
|Monthly amounts                   |  |                 |       |  |               |  |       |      |  |  |       |  |  |  |       | 
|October 2005                      |  |                 | 49.95 |  |               |  | 42.16 |      |  |  | 59.58 |  |  |  | 51.20 | 
|November 2005                     |  |                 | 49.14 |  |               |  | 42.10 |      |  |  | 57.95 |  |  |  | 49.31 | 
|December 2005                     |  |                 | 51.90 |  |               |  | 48.21 |      |  |  | 60.78 |  |  |  | 57.27 | 
|January 2006                      |  |                 | 58.40 |  |               |  | 50.75 |      |  |  | 70.22 |  |  |  | 62.20 | 
|February 2006                     |  |                 | 56.35 |  |               |  | 49.75 |      |  |  | 68.24 |  |  |  | 59.99 | 
|March 2006                        |  |                 | 56.55 |  |               |  | 50.10 |      |  |  | 68.50 |  |  |  | 59.70 | 
|April 2006                        |  |                 | 62.40 |  |               |  | 50.05 |      |  |  | 77.44 |  |  |  | 61.90 | 
|May 2006                          |  |                 | 51.90 |  |               |  | 39.50 |      |  |  | 64.73 |  |  |  | 51.07 | 
|June 2006 (through June 26, 2006) |  |                 | 46.31 |  |               |  | 38.30 |      |  |  | 59.61 |  |  |  | 48.91 | 




Source: Bloomberg




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




Plan of Distribution




Nature of Trading Market




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



tm


83



---



##### 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;
|
| |  | Compartment C comprises the companies with capitalizations
    below
    150 million.                                                 



over-the Marché Libre OTC


Continu Continu Continu


Continu


Continu Autorité des Marchés Financiers


84



---



##### Table of Contents



Service à
Règlement Différé   date
de liquidation






Other




85



---



##### Table of Contents






Item 10.     Additional
Information


Share Capital


 paid-up  


 paid-up 


Articles of Association (Statuts)


société anonyme Livre II Code de commerce 67-236 les sociétés commerciales
et les groupements dintérêt économique 6-8 +33-1 4778-2121.


Registre du
commerce et des sociétés


statuts




















86



---



##### Table of Contents





statuts statuts 20-F, 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

233-3 225-38 et seq.


87



---



##### Table of Contents







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

jetons de présence




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

225-43




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

225-19 statuts


statuts




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

statuts




88



---



##### 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 name or our corporate purpose;                                      
|
| |  | increasing or decreasing our share capital;                                      
|
| |  | creating a new class of equity securities (common or preferred
    shares);      
|
| |  | authorizing the issuance of any securities giving right to
    equity securities;
|
| |  | a statutory merger; and                                                          
|
| |  | our voluntary winding up 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 our share
    capital;                                                                                                                            
|
| |  | certain 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 our voting
    rights; or
|
| |  | the workers committee in cases of urgency.                                                                                                                                                          

89



---



##### Table of Contents





| |                                 
| | --------------------------------
| | 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




90



---



##### Table of Contents





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

statuts






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

statuts i.e.






statuts






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

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.

91



---



##### Table of Contents









| |         
| | --------
| | 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;                                                                                                                               
|
| |  | by conversion, exchange 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;                                                                                                     

92



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##### Table of Contents





| |   |                                                                              
| | - | -----------------------------------------------------------------------------
| |  | subject to various conditions, in satisfaction of debt incurred
    by us; or
|
| |  | any combination of the above.                                                



2004-604








| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | increase the share capital by issuing ordinary shares or any
    other securities giving access to the share capital or giving
    the right to debt securities while waiving the
    shareholders preferential subscription right, but with the
    authority to grant a priority period, up to a maximum amount of
    15,000,000. This
    authorization shall be valid for a period corresponding to the
    remaining validity period of the second resolution of the
    Combined General Meeting held on April 29, 2005, without
    exceeding June 28, 2007
    (8th Resolution);               
|
| |  | increase the number of securities to be issued in the event of a
    share capital increase, with or without waiving the
    shareholders preferential subscription right within
    30 days of the close of the subscription period and up to a
    maximum limit of 15% of the initial issue and at the same price
    as that used for the initial issue. This authorization shall be
    valid for a period corresponding to the remaining validity
    period of second resolution of the Combined General Meeting held
    on April 29, 2005, without exceeding June 28, 2007
    (9th Resolution);
|
| |  | grant shares, free of charge, to our eligible employees and
    officers and our affiliated companies up to the limit of 1% of
    the share capital. This authorization shall be valid for a
    period of 38 months
    (10th Resolution); and                                                                                                                                                                                                                                                                                                                                                          
|
| |  | increase our share capital by issues of securities for which the
    subscription is reserved to members of a Group Savings Plan
    (Plan dEpargne dEntreprise) up to a maximum
    nominal amount representing 3% of our share capital. This
    authorization invalidates the authorization granted by the
    6th resolution
    of the General Meeting of Shareholders held on April 29,
    2005. It shall be valid for a period of 26 months
    (11th Resolution).                                                                                                                              



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



93



---



##### Table of Contents





|                               |                                 |                           |            |            |               |  |      |       |  
|------------------------------ | ------------------------------- | ------------------------- | ---------- | ---------- | ------------- |  | ---- | ----- | -
|                               |                                 | Number of                 |            |            |              
|                               |                                 | Shares Issued             |            |            | Share Capital | 
|                               |                                 |                           |            |            |               | 
|                               |                                 | (in  millions            |           
|                               |                                 | except for shares issued) |           
|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 |      
|                               | 2005 increase                   |                           |            | 2,465,664  |               |  |      | 1.9   |  
|                               | One to four share split         |                           |            | 72,331,962 |               |  |      |      |  
|                               | Decrease in capital             |                           |            | (34,108    | )             |  |      | (0.03 | )
|Shares as of December 31, 2005 |                                 |                           | 98,874,172 |            |               |  | 75.4 |      






|    |  |                                                                                 
|--- |  | --------------------------------------------------------------------------------
|(a) |  | This increase results from exercised stock options.                             
|   
|(b) |  | This increase results from a new equity issuance reserved for
    our employees.
|   
|(c) |  | Decrease in capital by cancellation of treasury shares.                         



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

tm


délai de
priorité


94



---



##### 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


95



---



##### 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




96



---



##### 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




12-month


statuts de concert


1 3




97



---



##### Table of Contents










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

prestataire de
services dinvestissement document
de référence.






pro rata


  note
dinformation visa 24-month


i.e.  




| |   |                                                                                                                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the allocation/sale of shares to our employees or executives 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;                                                                                                                                                                                                                                                                                     

98



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| |   |                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the delivery of securities at the time of the exercise of the
    rights attached to transferable securities giving access to
    share capital; and
|
| |  | the execution of any market practice that would come to be
    recognized by law or by the AMF.                                                     





| |                      
| | ---------------------
| | 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.





99



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DESCRIPTION OF OUR AMERICAN DEPOSITARY SHARES


American Depositary Receipts


ADS-to four-to one-to








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.


100



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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?







101



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| |                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------
| | How do American Depositary Receipt holders cancel an
    American Depositary Share and obtain deposited
    securities?







| |   |                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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;
|
| |  | the payment of fees, taxes and similar charges; or                                                                                                                                                      
|
| |  | 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


102



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Record Dates






| |   |                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------
| |  | to receive a dividend, distribution or rights; or                                                                                       
|
| |  | 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?







| |   |                                                                                                                                                                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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;                                                                                     
|
| |  | 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;
|
| |  | stock transfer or other taxes and other governmental charges;                                                                                                                                                                                                                                                             
|
| |  | cable, telex and facsimile transmission and delivery charges
    incurred at your request;                                                                                                                                                                                                                                
|
| |  | 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                                                                                                                       
|
| |  | expenses of the Depositary in connection with the conversion of
    foreign currency into U.S. dollars.                                                                                                                                                                                                                   



103



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Payment of Taxes


split-up


Reclassifications, Recapitalizations and Mergers






| |   |                                                                                                   
| | - | --------------------------------------------------------------------------------------------------
| |  | amend the form of American Depositary Receipt;                                                    
|
| |  | distribute additional or amended American Depositary Receipts;                                    
|
| |  | distribute cash, securities or other property it has received in
    connection with such actions;
|
| |  | sell any securities or property received and distribute the
    proceeds as cash; or              
|
| |  | none of the above.                                                                                



Amendment and Termination




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







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



104



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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





| |   |                                                                                                                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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; 
|
| |  | it exercises or fails to exercise discretion under the deposit
    agreement or the American Depositary Receipt;                                                                                                                                                                                                               
|
| |  | it performs its obligations without gross negligence or bad
    faith;                                                                                                                                                                                                                                                         
|
| |  | 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
|
| |  | 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






| |   |                                                                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the capacity in which you and other holders and beneficial
    owners own or owned American Depositary Shares; and                                                   
|
| |  | 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.



105



---



##### Table of Contents



Requirements for Depositary Actions






| |   |                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | issue, register or transfer an American Depositary Receipt or
    American Depositary Receipts;                                                       
|
| |  | effect a split-up or
    combination of American Depositary Receipts;                                                                                 
|
| |  | deliver distributions on any such American Depositary
    Receipts; or                                                                                
|
| |  | 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.                                                                                 

split-up


Books of Depositary


split-up split-up


Pre-release of American Depositary Shares






| |   |                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------
| |  | the Depositary has received collateral for the full market value
    of the pre-released American Depositary Shares; and
|
| |  | 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.



106



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The Depositary




| |                       
| | ----------------------
| | Who is the Depositary?



Material Contracts




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








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








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

     





107



---



##### Table of Contents



Exchange Controls




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



autorisation préalable 2003-196 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.



108



---



##### Table of Contents










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



 








avoir fiscal avoir fiscal précompte avoir fiscal


Territoires dOutre-Mer


|             |  |             |  |             |  |                         
|------------ |  | ----------- |  | ----------- |  | ------------------------
|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

Dividends paid in 2005.


109



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J-1-05,










| |                    
| | -------------------
| | 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






| |   |                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | you own (directly, indirectly or by attribution) less than 10%
    of our outstanding share capital or voting stock; and                                                                                        
|
| |  | you do not hold your shares or American Depositary Shares in
    connection with a permanent establishment or a fixed base in
    France through which you carry on a business or perform personal
    services.
|
| |  | you are any one of the following:                                                                                                                                                                               



| |   |                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | an individual who is a citizen or resident of the United States
    for U.S. federal income tax purposes;                                                                                                                        
|
| |  | 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;
|
| |  | an estate the income of which is subject to U.S. federal
    income taxation regardless of its source; or                                                                                                                        

110



---



##### Table of Contents





| |   |                                                                                                                                                                                                                                             
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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;



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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;
|
| |  | you hold your Technip shares or American Depositary Shares as
    capital assets;                                                                                                                                                                                                                                                                                                                                                                                           
|
| |  | you are not also a resident of France; and                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| |  | your functional currency is the U.S. dollar.                                                                                                                                                                                                                                                                                                                                                                                                                                



mark-to




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.




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

U.S.-France


 


111



---



##### Table of Contents





J-1-05,


EU-No.








U.S.-France


U.S.-France


112



---



##### Table of Contents





non-U.S. non-U.S. non-U.S. U.S.-France 1099-DIV.






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

U.S.-France








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

non-U.S.


113



---



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| |                             
| | ----------------------------
| | 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

U.S.-France




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

W-9 Non-U.S. non-U.S. U.S.-related


Dividends and Paying Agents




Statements by Experts




Documents on Display


1-800-SEC-0330


Subsidiary Information




114



---



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|         |                                                           
|-------- | ----------------------------------------------------------
|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
    150.0 million
    with an average maturity of less than three months;
|
| |  | bank overdrafts and others for
    39.2 million;                                              
|
| |  | accrued interests on the convertible bonds for
    24.2 million; and                          
|
| |  | short-term part of the long-term debts, which amounts to
    1.0 million.                     







  







115



---



##### Table of Contents










  





Fair Value of On Balance-Sheet Financial Instruments






|                                                |  |                  |         |  |            |  |         | 
|----------------------------------------------- |  | ---------------- | ------- |  | ---------- |  | ------- | 
|                                                |  | Accounting value |         |  | Fair value | 
|                                                |  |                  |         |  |            | 
|                                                |  | (in  millions)  |        
|Non-current and accrued interest on non-current |  |                  |         |  |            |  |         | 
|Convertible bond                                |  |                  | 656.2   |  |            |  | 676.6   | 
|Eurobond                                        |  |                  | 668.1   |  |            |  | 702.0   | 
|Other                                           |  |                  | 5.2     |  |            |  | 5.2     | 
|                                                |  |                  |         |  |            | 
|                                                |  |                  | 1,329.5 |  |            |  | 1,383.8 | 
|                                                |  |                  |         |  |            | 

Currency Risk






116



---



##### Table of Contents







As of December 31, 2005


|                                       |        |                                      |         |       |      |  |            |       |  |  |      |      |  |      |      |     |       |  |   |       |  |  |         |         |  |  |       |       |  
|-------------------------------------- | ------ | ------------------------------------ | ------- | ----- | ---- |  | ---------- | ----- |  |  | ---- | ---- |  | ---- | ---- | --- | ----- |  | - | ----- |  |  | ------- | ------- |  |  | ----- | ----- | -
|                                       |        | Maturing in year ending December 31, |         |       |      |  |           
|                                       |        |                                      |         |       |      |  | Fair value |      
|Foreign Exchange Contracts             |        | 2006                                 |         |       | 2007 |  |            | 2008  |  |  | 2009 |      |  | 2010 |      |     | Total |  |   | Total | 
|                                       |        |                                      |         |       |      |  |            |       |  |  |      |      |  |      |      |     |       |  |   |       | 
|                                       |        | (in  millions)                      |        
|Sell currency, buy national currencies |        |                                      |         |       |      |  |            |       |  |  |      |      |  |      |      |     |       |  |   |       |  |  |         |         |  |  |       |      
|                                       | U.S.$  |                                      |         | 830.7 |      |  |            | 457.2 |  |  |      | 47.3 |  |      |      | 9.8 |       |  |   |      |  |  |         | 1,345.0 |  |  |       | (63.2 | )
|                                       | GBP    |                                      |         | 89.4  |      |  |            | 2.5   |  |  |      |     |  |      |      | 0.5 |       |  |   |      |  |  |         | 92.4    |  |  |       | (0.2  | )
|                                       | CAD    |                                      |         | 68.0  |      |  |            | 25.2  |  |  |      |     |  |      |      |    |       |  |   |      |  |  |         | 93.2    |  |  |       | (13.9 | )
|                                       | Others |                                      |         | 21.1  |      |  |            | 1.3   |  |  |      |     |  |      |      |    |       |  |   |      |  |  |         | 22.4    |  |  |       | (0.4  | )
|Total                                  |        |                                      | 1,009.2 |       |      |  | 486.2      |       |  |  | 47.3 |      |  |      | 10.3 |     |       |  |  |       |  |  | 1,553.0 |         |  |  | (77.7 | )    
|                                       |        |                                      |         |       |      |  |            |       |  |  |      |      |  |      |      |     |       |  |   |       | 
|Buy currency, sell national currencies |        |                                      |         |       |      |  |            |       |  |  |      |      |  |      |      |     |       |  |   |       |  |  |         |         |  |  |       |      
|                                       | U.S.$  |                                      |         | 12.6  |      |  |            | 0.4   |  |  |      |     |  |      |      |    |       |  |   |      |  |  |         | 13.0    |  |  |       | 0.1   |  
|                                       | GBP    |                                      |         | 56.6  |      |  |            | 52.6  |  |  |      |     |  |      |      |    |       |  |   |      |  |  |         | 109.2   |  |  |       | 0.1   |  
|                                       | Others |                                      |         | 17.2  |      |  |            |      |  |  |      |     |  |      |      |    |       |  |   |      |  |  |         | 17.2    |  |  |       | 0.2   |  
|Total                                  |        |                                      | 86.4    |       |      |  | 53.0       |       |  |  |     |      |  |      |     |     |       |  |  |       |  |  | 139.4   |         |  |  | 0.4   |      
|                                       |        |                                      |         |       |      |  |            |       |  |  |      |      |  |      |      |     |       |  |   |       | 
|Sell/buy foreign currencies            |        |                                      | 545.4   |       |      |  | 113.3      |       |  |  | 1.1  |      |  |      | 1.6  |     |       |  |  |       |  |  | 661.4   |         |  |  | 3.7   |      
|Total                                  |        |                                      | 545.4   |       |      |  | 113.3      |       |  |  | 1.1  |      |  |      | 1.6  |     |       |  |  |       |  |  | 661.4   |         |  |  | 3.7   |      
|                                       |        |                                      |         |       |      |  |            |       |  |  |      |      |  |      |      |     |       |  |   |       | 

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  |      
|                                       |        |                                      |       |       |      |  |            |      |  |  |      |   |  |      |   |   |       |  |   |       | 

117



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##### Table of Contents



Interest Risk













|         |                                                       
|-------- | ------------------------------------------------------
|Item 12. | Description of Securities Other than Equity Securities



118



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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

13a-14(c)) 20-F.









|         |           
|-------- | ----------
|Item 16. | [Reserved]




Item 16A. Audit Committee Financial Expert


20-F.





Item 16B.     Code of Ethics


+33-1-4778-6675).





Item 16C.     Principal
Accountant Fees and Services


20-F.


119



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|                      |  |               |       |                  |                        |  |       |               |      |  |                        |  |  |  |     | 
|--------------------- |  | ------------- | ----- | ---------------- | ---------------------- |  | ----- | ------------- | ---- |  | ---------------------- |  |  |  | --- | 
|                      |  |               |       | 2005             |                        |  |       |               | 2004 | 
|                      |  | 2005          |       |                  | PricewaterhouseCoopers |  |       | 2004          |      |  | PricewaterhouseCoopers | 
|                      |  | Ernst & Young |       |                  | Audit                  |  |       | Ernst & Young |      |  | Audit                  | 
|                      |  |               |       |                  |                        |  |       |               |      |  |                        | 
|                      |  |               |       | (in  thousands) |                        |  |      
|Audit Fees(1)         |  |               | 4,524 |                  |                        |  | 1,132 |               |      |  | 3,637                  |  |  |  | 269 | 
|Audit-Related Fees(2) |  |               | 62    |                  |                        |  | 0     |               |      |  | 349                    |  |  |  | 16  | 
|Tax Fees(3)           |  |               | 846   |                  |                        |  | 123   |               |      |  | 947                    |  |  |  | 89  | 
|All Other Fees(4)     |  |               | 98    |                  |                        |  | 27    |               |      |  | 345                    |  |  |  | 34  | 
|Total                 |  |               | 5,530 |                  |                        |  | 1,282 |               |      |  | 5,278                  |  |  |  | 408 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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







| |   |                                                       
| | - | ------------------------------------------------------
| |  | audit-related engagements up to
    0.5 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.







120



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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    | 
|                         |  |                      |         |  |                   |                      |       |           |                    |  |                 | 
|2005-01-01 to 2005-01-31 |  |                      | 0       |  |                   |                      | 0     |           |                    |  | 0               |  |  |  | 0         | 
|2005-02-01 to 2005-02-28 |  |                      | 0       |  |                   |                      | 0     |           |                    |  | 0               |  |  |  | 0         | 
|2005-03-01 to 2005-03-31 |  |                      | 0       |  |                   |                      | 0     |           |                    |  | 0               |  |  |  | 0         | 
|2005-04-01 to 2005-04-30 |  |                      | 0       |  |                   |                      | 0     |           |                    |  | 0               |  |  |  | 0         | 
|2005-05-01 to 2005-05-31 |  |                      | 139,576 |  |                   |                      | 35.81 |           |                    |  | 139,576         |  |  |  | 2,076,630 | 
|2005-06-01 to 2005-06-30 |  |                      | 139,576 |  |                   |                      | 35.81 |           |                    |  | 139,576         |  |  |  | 1,937,054 | 
|2005-07-01 to 2005-07-31 |  |                      | 0       |  |                   |                      | 0     |           |                    |  | 0               |  |  |  | 0         | 
|2005-08-01 to 2005-08-31 |  |                      | 0       |  |                   |                      | 0     |           |                    |  | 0               |  |  |  | 0         | 
|2005-09-01 to 2005-09-30 |  |                      | 220,500 |  |                   |                      | 47.35 |           |                    |  | 220,500         |  |  |  | 1,716,554 | 
|2005-10-01 to 2005-10-31 |  |                      | 350,000 |  |                   |                      | 46.01 |           |                    |  | 350,000         |  |  |  | 1,366,554 | 
|2005-11-01 to 2005-11-30 |  |                      | 0       |  |                   |                      | 0     |           |                    |  | 0               |  |  |  | 0         | 
|2005-12-01 to 2005-12-31 |  |                      | 100,000 |  |                   |                      | 48.80 |           |                    |  | 100,000         |  |  |  | 1,266,554 | 

121



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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, 2005 and 2004                          |  |      | F-3   | 
|Consolidated Balance Sheets as of
    December 31, 2005 and 2004                                                  |  |      | F-4   | 
|Consolidated Statements of Cash Flows for
    the Years Ended December 31, 2005 and 2004                          |  |      | F-6   | 
|Consolidated Statements of Changes in
    Shareholders Equity for the Years Ended December 31,
    2005 and 2004 |  |      | F-7   | 
|Notes to the Consolidated Financial
    Statements                                                                |  |      | F-8   | 
|Transition to International Financial
    Reporting Standards
    (information released on October 31, 2005)      |  |      | F- 86 | 




Item 19.     Exhibits


|     |  |                                                                                                                                                                                                            
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1.1  |  | Articles of Association as amended as of February 22, 2006,
    of Technip                                                                                                                                 
|8.1  |  | Subsidiaries of Technip (see Note 35 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 President, Chief Financial Officer
    pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                      
|13.1 |  | Certification of the Chief Executive Officer and the
    President, 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                                                                                                                            

122



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SIGNATURES


20-F




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



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

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



123



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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, 2005 and 2004                          |  |      | F-3  | 
|Consolidated Balance Sheets as of
    December 31, 2005 and 2004                                                  |  |      | F-4  | 
|Consolidated Statements of Cash Flows for
    the Years Ended December 31, 2005 and 2004                          |  |      | F-6  | 
|Consolidated Statements of Changes in
    Shareholders Equity for the Years Ended December 31,
    2005 and 2004 |  |      | F-7  | 
|Notes to the Consolidated Financial
    Statements                                                                |  |      | F-8  | 
|Transition to International Financial
    Reporting Standards (information released on October 31,
    2005)      |  |      | F-86 | 

F-1



---



##### Table of Contents






TECHNIP


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM






















F-2



---



##### Table of Contents








|   |                               
|-- | ------------------------------
|1. | CONSOLIDATED INCOME STATEMENTS

|                                                                                  |  |       |   |                               |      |  |             |      |  |  |             |    
|--------------------------------------------------------------------------------- |  | ----- | - | ----------------------------- | ---- |  | ----------- | ---- |  |  | ----------- | ---
|                                                                                  |  |       |   | For the years ended           |     
|                                                                                  |  |       |   | December 31,                  |     
|                                                                                  |  |       |   |                               |     
|                                                                                  |  | Notes |   |                               | 2005 |  |             | 2004 | 
|                                                                                  |  |       |   |                               |      |  |             |      | 
|                                                                                  |  |       |   | (Amounts in millions of Euro, |     
|                                                                                  |  |       |   | except as otherwise stated)   |     
|Revenues                                                                          |  |       | 3 |                               |      |  | 5,376.1     |      |  |  | 5,140.9     |    
|Cost of Sales                                                                     |  |       |   |                               |      |  | (4,818.0    | )    |  |  | (4,577.8    | )  
|Gross Margin                                                                      |  |       |   |                               |      |  | 558.1       |      |  |  | 563.1       |    
|Research and Development Expenses                                                 |  |       |   |                               |      |  | (29.4       | )    |  |  | (30.2       | )  
|Selling Costs                                                                     |  |       |   |                               |      |  | (84.0       | )    |  |  | (99.1       | )  
|Administrative Costs                                                              |  |       |   |                               |      |  | (224.2      | )    |  |  | (189.3      | )  
|Other Operating Income                                                            |  |       |   |                               |      |  | 32.6        |      |  |  | 26.0        |    
|Other Operating Expenses                                                          |  |       |   |                               |      |  | (22.1       | )    |  |  | (36.9       | )  
|Income/(Loss) from Operations                                                     |  |       | 4 |                               |      |  | 231.0       |      |  |  | 233.6       |    
|Financial Income                                                                  |  |       | 5 |                               |      |  | 20.0        |      |  |  | 14.3        |    
|Financial Expenses                                                                |  |       | 5 |                               |      |  | (108.8      | )    |  |  | (80.7       | )  
|Share of Income/(Loss) of Associates Accounted for Using the
    Equity Method    |  |       |   |                               |      |  | 1.3         |      |  |  | 1.2         |    
|Income/(Loss) before Tax                                                          |  |       |   |                               |      |  | 143.5       |      |  |  | 168.4       |    
|Income Tax Expense                                                                |  |       | 6 |                               |      |  | (43.5       | )    |  |  | (54.2       | )  
|                                                                                  |  |       |   |                               |      |  |             |      | 
|Income/(Loss) from Continuing Operations                                          |  |       |   |                               |      |  | 100.0       |      |  |  | 114.2       |    
|                                                                                  |  |       |   |                               |      |  |             |      | 
|Income/(Loss) from Discontinued Operations                                        |  |       | 7 |                               |      |  | (5.0        | )    |  |  |            |    
|                                                                                  |  |       |   |                               |      |  |             |      | 
|Net Income/(Loss) for the Year                                                    |  |       |   |                               |      |  | 95.0        |      |  |  | 114.2       |    
|                                                                                  |  |       |   |                               |      |  |             |      | 
|Attributable to:                                                                  |  |       |   |                               |      |  |             |      |  |  |             |    
|Shareholders of the Parent Company                                                |  |       |   |                               |      |  | 93.3        |      |  |  | 111.8       |    
|Minority Interests                                                                |  |       |   |                               |      |  | 1.7         |      |  |  | 2.4         |    
|                                                                                  |  |       |   |                               |      |  |             |      | 
|                                                                                  |  |       |   |                               |      |  | 95.0        |      |  |  | 114.2       |    
|                                                                                  |  |       |   |                               |      |  |             |      | 
|Number of Shares Considered for Net Earnings per Share
    Computation(2)         |  |       | 8 |                               |      |  | 95,687,456  |      |  |  | 94,454,277  | (1)
|Number of Shares Considered for Net Diluted Earnings per Share
    Computation(3) |  |       | 8 |                               |      |  | 97,217,686  |      |  |  | 110,843,694 | (1)
|Number of Shares Considered for Net Fully Diluted Earnings per
    Share(4)       |  |       | 8 |                               |      |  | 115,349,102 |      |  |  | 115,544,936 | (1)
|Net Earnings per Share (in Euros)(2)                                              |  |       | 8 |                               |      |  | 0.98        |      |  |  | 1.18        |    
|Net Diluted Earnings per Share (in Euros)(3)                                      |  |       | 8 |                               |      |  | 0.96        |      |  |  | 1.13        |    
|Net Fully Diluted Earnings per Share (in Euros)(4)                                |  |       | 8 |                               |      |  | 1.11        |      |  |  | 1.09        |    






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The number of shares have been adjusted to take into account the
    4-for-1 share split on May 13, 2005 and to enable the
    comparison.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   
|(2) | Net earnings per share are based on the weighted average number
    of outstanding shares over the period, after deducting the
    treasury shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   
|(3) | The net diluted earnings per share include the possible dilutive
    effects that may be generated by equity instruments (stock
    options) and compound financial instruments (convertible bonds
    OCEANE). The Group has not issued any other financial
    instruments that might create an additional dilution on net
    earnings per share. Net diluted earning per share does not
    include convertible bonds in accordance with IAS 33 since
    they have no dilutive effect on the net income as of
    December 31, 2005, as per application of IAS 32 and
    IAS 39 (see Note 8  Net Diluted Earnings
    per Share).                                 
|   
|(4) | Net fully diluted earnings per share include the impact of all
    equity and compound financial instruments. The number of shares
    on a fully diluted basis comprises shares that would result from
    the convertible bond conversion into newly issued shares and
    from the exercise of subscription options, after deducting
    treasury shares. The number of fully diluted shares for 2004 has
    been adjusted to include the 4-for-1 share split on May 13,
    2005. Earnings used as basis of this computation are restated to
    exclude net costs of income tax related to convertible bonds
    (see Note 8  Net Diluted Earnings
    per Share).

Following the analyses performed for the 2005 IFRS closing,
some items of the 2004 IFRS accounts released in April 2005 have
been restated to enable comparison with 2005 accounts. These
immaterial reclassifications essentially relate to the
disclosure of deferred taxes in the balance sheet; regarding the
income statement of 2004, income from discontinued operations
has been reclassified in other operating income and expenses.
Additionally in 2005, some reclassifications have been made on
certain immaterial items of the balance sheet and the cash flow
statement since the release on February 23, 2006.




F-3



---



##### Table of Contents






2.     CONSOLIDATED BALANCE
SHEETS


|                                                                |  |       |    |                               |      |  |         |      |  |  |         | 
|--------------------------------------------------------------- |  | ----- | -- | ----------------------------- | ---- |  | ------- | ---- |  |  | ------- | 
|                                                                |  |       |    | As of December 31,            |     
|                                                                |  |       |    |                               |     
|                                                                |  | Notes |    |                               | 2005 |  |         | 2004 | 
|                                                                |  |       |    |                               |      |  |         |      | 
|                                                                |  |       |    | (Amounts in millions of Euro, |     
|                                                                |  |       |    | except as otherwise stated)   |     
|ASSETS                                                          |  |       |    |                               |      |  |         |      |  |  |         | 
|Non-Current Assets                                              |  |       |    |                               |      |  |         |      |  |  |         | 
|Property, Plant and Equipment, Net                              |  |       | 11 |                               |      |  | 771.3   |      |  |  | 736.5   | 
|Intangible Assets, Net                                          |  |       | 12 |                               |      |  | 2,451.9 |      |  |  | 2,472.7 | 
|Investments in Associates Accounted for Using the Equity Method |  |       | 13 |                               |      |  | 9.7     |      |  |  | 19.9    | 
|Other Financial Assets                                          |  |       | 14 |                               |      |  | 11.6    |      |  |  | 3.4     | 
|Deferred Tax Assets                                             |  |       | 6  |                               |      |  | 90.0    |      |  |  | 105.2   | 
|Available-for-Sale Financial Assets                             |  |       | 15 |                               |      |  |        |      |  |  |        | 
|                                                                |  |       |    |                               |      |  |         |      | 
|                                                                |  |       |    |                               |      |  | 3,334.5 |      |  |  | 3,337.7 | 
|                                                                |  |       |    |                               |      |  |         |      | 
|Current Assets                                                  |  |       |    |                               |      |  |         |      |  |  |         | 
|Inventories                                                     |  |       | 16 |                               |      |  | 101.0   |      |  |  | 87.2    | 
|Construction Contracts  Amounts Due from Clients               |  |       | 17 |                               |      |  | 585.0   |      |  |  | 400.6   | 
|Advances Paid to Suppliers                                      |  |       |    |                               |      |  | 266.9   |      |  |  | 249.3   | 
|Derivatives                                                     |  |       | 28 |                               |      |  | 3.5     |      |  |  |        | 
|Trade Receivables                                               |  |       | 18 |                               |      |  | 440.0   |      |  |  | 349.0   | 
|Current Income Tax Receivables                                  |  |       |    |                               |      |  | 51.8    |      |  |  | 98.5    | 
|Other Current Receivables                                       |  |       | 19 |                               |      |  | 283.6   |      |  |  | 461.3   | 
|Cash and Cash Equivalents                                       |  |       | 20 |                               |      |  | 2,187.8 |      |  |  | 1,434.0 | 
|                                                                |  |       |    |                               |      |  |         |      | 
|                                                                |  |       |    |                               |      |  | 3,919.6 |      |  |  | 3,079.9 | 
|                                                                |  |       |    |                               |      |  |         |      | 
|Assets of Disposal Group Classified as Held for Sale            |  |       | 7  |                               |      |  | 42.9    |      |  |  |        | 
|                                                                |  |       |    |                               |      |  |         |      | 
|TOTAL ASSETS                                                    |  |       |    |                               |      |  | 7,297.0 |      |  |  | 6,417.6 | 
|                                                                |  |       |    |                               |      |  |         |      | 

Following the analyses performed for the 2005 IFRS closing,
some items of the 2004 IFRS accounts released in April 2005 have
been restated to enable comparison with 2005 accounts. These
immaterial reclassifications essentially relate to the
disclosure of deferred taxes in the balance sheet; regarding the
income statement of 2004, income from discontinued operations
has been reclassified in other operating income and expenses.
Additionally in 2005, some reclassifications have been made on
certain immaterial items of the balance sheet and the cash flow
statement since the release on February 23, 2006.




F-4



---



##### Table of Contents



2.     CONSOLIDATED BALANCE SHEETS
(continued)


|                                                                                |  |       |    |                               |      |  |         |      |  |  |         |  
|------------------------------------------------------------------------------- |  | ----- | -- | ----------------------------- | ---- |  | ------- | ---- |  |  | ------- | -
|                                                                                |  |       |    | As of December 31,            |     
|                                                                                |  |       |    |                               |     
|                                                                                |  | Notes |    |                               | 2005 |  |         | 2004 | 
|                                                                                |  |       |    |                               |      |  |         |      | 
|                                                                                |  |       |    | (Amounts in millions of Euro, |     
|                                                                                |  |       |    | except as otherwise stated)   |     
|SHAREHOLDERS EQUITY                                                            |  |       |    |                               |      |  |         |      |  |  |         |  
|Common Stock: 0.7625 Euro Nominal Share Value,                                  |  |       |    |                               |      |  | 75.4    |      |  |  | 73.5    |  
|98,874,172 Shares as of December 31, 2005(1)                                    |  |       |    |                               |      |  |         |      |  |  |         |  
|24,110,654 Shares as of December 31, 2004                                       |  |       |    |                               |      |  |         |      |  |  |         |  
|23,738,331 Shares as of December 31, 2003                                       |  |       |    |                               |      |  |         |      |  |  |         |  
|Paid-in-Surplus                                                                 |  |       |    |                               |      |  | 1,336.7 |      |  |  | 1,275.6 |  
|Retained Earnings                                                               |  |       |    |                               |      |  | 522.7   |      |  |  | 445.8   |  
|Treasury Shares(2)                                                              |  |       |    |                               |      |  | (52.4   | )    |  |  | (32.4   | )
|Foreign Currency Translation Reserve                                            |  |       |    |                               |      |  | 4.5     |      |  |  | (34.3   | )
|Fair Value Reserve                                                              |  |       |    |                               |      |  | (26.5   | )    |  |  | 11.6    |  
|Net Income                                                                      |  |       |    |                               |      |  | 93.3    |      |  |  | 111.8   |  
|                                                                                |  |       |    |                               |      |  |         |      | 
|                                                                                |  |       | 21 |                               |      |  | 1,953.7 |      |  |  | 1,851.6 |  
|                                                                                |  |       |    |                               |      |  |         |      | 
|Minority Interests                                                              |  |       |    |                               |      |  | 13.9    |      |  |  | 9.8     |  
|                                                                                |  |       |    |                               |      |  |         |      | 
|TOTAL EQUITY                                                                    |  |       |    |                               |      |  | 1,967.6 |      |  |  | 1,861.4 |  
|                                                                                |  |       |    |                               |      |  |         |      | 
|LIABILITIES                                                                     |  |       |    |                               |      |  |         |      |  |  |         |  
|Non-Current Liabilities                                                         |  |       |    |                               |      |  |         |      |  |  |         |  
|Convertible Bonds OCEANE(3)                                                     |  |       | 23 |                               |      |  | 650.1   |      |  |  | 670.9   |  
|Other Non-Current Financial Debts                                               |  |       | 22 |                               |      |  | 655.2   |      |  |  | 737.8   |  
|Provisions                                                                      |  |       | 25 |                               |      |  | 106.3   |      |  |  | 115.3   |  
|Deferred Tax Liabilities                                                        |  |       | 6  |                               |      |  | 100.4   |      |  |  | 127.1   |  
|                                                                                |  |       |    |                               |      |  |         |      | 
|                                                                                |  |       |    |                               |      |  | 1,512.0 |      |  |  | 1,651.1 |  
|                                                                                |  |       |    |                               |      |  |         |      | 
|Current Liabilities                                                             |  |       |    |                               |      |  |         |      |  |  |         |  
|Current Financial Debt                                                          |  |       | 22 |                               |      |  | 214.4   |      |  |  | 192.0   |  
|Trade Payables                                                                  |  |       | 26 |                               |      |  | 978.1   |      |  |  | 852.5   |  
|Construction Contracts  Amounts Due to Clients                                 |  |       | 17 |                               |      |  | 35.5    |      |  |  | 33.1    |  
|Advances Received                                                               |  |       |    |                               |      |  | 1,636.9 |      |  |  | 915.6   |  
|Derivatives                                                                     |  |       | 28 |                               |      |  | 77.1    |      |  |  |        |  
|Provisions                                                                      |  |       | 25 |                               |      |  | 133.4   |      |  |  | 121.5   |  
|Current Income Tax Payables                                                     |  |       |    |                               |      |  | 34.9    |      |  |  | 18.7    |  
|Other Current Payables                                                          |  |       | 27 |                               |      |  | 707.1   |      |  |  | 771.7   |  
|                                                                                |  |       |    |                               |      |  |         |      | 
|                                                                                |  |       |    |                               |      |  | 3,817.4 |      |  |  | 2,905.1 |  
|                                                                                |  |       |    |                               |      |  |         |      | 
|TOTAL LIABILITIES                                                               |  |       |    |                               |      |  | 5,329.4 |      |  |  | 4,556.2 |  
|                                                                                |  |       |    |                               |      |  |         |      | 
|Liabilities Directly Associated with the Assets Classified as
    Held for Sale |  |       |    |                               |      |  |        |      |  |  |        |  
|                                                                                |  |       |    |                               |      |  |         |      | 
|TOTAL EQUITY AND LIABILITIES                                                    |  |       |    |                               |      |  | 7,297.0 |      |  |  | 6,417.6 |  
|                                                                                |  |       |    |                               |      |  |         |      | 






|    |                                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | On May 13, 2005, Technips ordinary shares were split
    4-for-1 on the decision of the Combined Shareholders
    Meeting of April 29, 2005.                                                                                               
|   
|(2) | As of December 31, 2005 and December 31, 2004, Technip
    held respectively 1,580,548 and 340,242 shares (after the
    split 4-for-1). These treasury shares have been deducted from
    shareholders equity in the consolidated accounts.
|   
|(3) | Convertible bonds (OCEANE) whose maturity was set on
    January 1, 2007, were subject to early conversion in March
    2006 (see Note 34  Subsequent Events).                                                                              

Following the analyses performed for the 2005 IFRS closing,
some items of the 2004 IFRS accounts released in April 2005 have
been restated to enable comparison with 2005 accounts. These
immaterial reclassifications essentially relate to the
disclosure of deferred taxes in the balance sheet; regarding the
income statement of 2004, income from discontinued operations
has been reclassified in other operating income and expenses.
Additionally in 2005, some reclassifications have been made on
certain immaterial items of the balance sheet and the cash flow
statement since the release on February 23, 2006.




F-5



---



##### Table of Contents






3.     CONSOLIDATED STATEMENTS OF
CASH FLOWS


|                                                                          |                                                                                         |       |  |                               |      |  |         |       |   |  |         |       |  
|------------------------------------------------------------------------- | --------------------------------------------------------------------------------------- | ----- |  | ----------------------------- | ---- |  | ------- | ----- | - |  | ------- | ----- | -
|                                                                          |                                                                                         |       |  | For the years ended           |     
|                                                                          |                                                                                         |       |  | December 31,                  |     
|                                                                          |                                                                                         |       |  |                               |     
|                                                                          |                                                                                         | Notes |  |                               | 2005 |  |         | 2004  |  
|                                                                          |                                                                                         |       |  |                               |      |  |         |       |  
|                                                                          |                                                                                         |       |  | (Amounts in millions of Euro, |     
|                                                                          |                                                                                         |       |  | except as otherwise stated)   |     
|CASH FLOWS FROM OPERATING ACTIVITIES                                      |                                                                                         |       |  |                               |      |  |         |       |   |  |         |      
|Net Income for the Year                                                   |                                                                                         |       |  |                               |      |  | 95.0    |       |   |  | 114.2   |      
|Adjustments for:                                                          |                                                                                         |       |  |                               |      |  |         |       |   |  |         |      
|                                                                          | Depreciation of Property, Plant and Equipment and Amortization
    of Intangible Assets |       |  |                               |      |  |         | 143.3 |   |  |         | 142.1 |  
|                                                                          | Amortization of Convertible Bond Loan Redemption Premium                                |       |  |                               |      |  |         | 13.3  |   |  |         | 11.4  |  
|                                                                          | Charge related to Convertible Bond Split Accounting                                     |       |  |                               |      |  |         | 16.6  |   |  |         |      |  
|                                                                          | Stock Option Charge                                                                     |       |  |                               |      |  |         | 5.4   |   |  |         | 5.8   |  
|                                                                          | Non-Current Provisions (including Employee Benefits)                                    |       |  |                               |      |  |         | 0.7   |   |  |         | (4.8  | )
|                                                                          | Share of Income/(Loss) of Associates Accounted for Using the
    Equity Method          |       |  |                               |      |  |         | (0.6  | ) |  |         | (1.2  | )
|                                                                          | Net (Gains)/Losses on Disposal of Assets and Investments                                |       |  |                               |      |  |         | (10.4 | ) |  |         | 9.2   |  
|                                                                          | Deferred Tax                                                                            |       |  |                               |      |  |         | 12.5  |   |  |         | 31.2  |  
|                                                                          |                                                                                         |       |  |                               |      |  |         |       |  
|                                                                          |                                                                                         |       |  |                               |      |  | 275.8   |       |   |  | 307.9   |      
|                                                                          |                                                                                         |       |  |                               |      |  |         |       |  
|Changes in Working Capital                                                |                                                                                         |       |  |                               |      |  | 618.1   |       |   |  | 89.9    |      
|                                                                          |                                                                                         |       |  |                               |      |  |         |       |  
|Net Cash Generated from Operating Activities                              |                                                                                         |       |  |                               |      |  | 893.9   |       |   |  | 397.8   |      
|                                                                          |                                                                                         |       |  |                               |      |  |         |       |  
|CASH FLOWS FROM INVESTING ACTIVITIES                                      |                                                                                         |       |  |                               |      |  |         |       |   |  |         |      
|Purchases of Property, Plant and Equipment                                |                                                                                         |       |  |                               |      |  | (167.4  | )     |   |  | (118.6  | )    
|Proceeds from Sales of Property, Plant and Equipment                      |                                                                                         |       |  |                               |      |  | 19.4    |       |   |  | 5.7     |      
|Purchases of Intangible Assets                                            |                                                                                         |       |  |                               |      |  | (3.1    | )     |   |  | (5.2    | )    
|Acquisitions of Investments, Net of Cash Acquired                         |                                                                                         |       |  |                               |      |  | (0.9    | )     |   |  |        |      
|Proceeds from Sales of Investments                                        |                                                                                         |       |  |                               |      |  | 2.6     |       |   |  | 17.2    |      
|Changes in Scope of Consolidation                                         |                                                                                         |       |  |                               |      |  | 4.8     |       |   |  | (27.4   | )    
|                                                                          |                                                                                         |       |  |                               |      |  |         |       |  
|Net Cash Used in Investing Activities                                     |                                                                                         |       |  |                               |      |  | (144.6  | )     |   |  | (128.3  | )    
|                                                                          |                                                                                         |       |  |                               |      |  |         |       |  
|CASH FLOWS FROM FINANCING ACTIVITIES                                      |                                                                                         |       |  |                               |      |  |         |       |   |  |         |      
|Increase in Borrowings                                                    |                                                                                         |       |  |                               |      |  | 51.1    |       |   |  | 673.1   |      
|Decrease in Borrowings                                                    |                                                                                         |       |  |                               |      |  | (141.2  | )     |   |  | (242.1  | )    
|Capital Increase                                                          |                                                                                         |       |  |                               |      |  | 63.8    |       |   |  | 26.3    |      
|Share Buy-Back                                                            |                                                                                         |       |  |                               |      |  | (20.1   | )     |   |  | (22.7   | )    
|Dividends Paid                                                            |                                                                                         |       |  |                               |      |  | (32.0   | )     |   |  | (129.8  | )    
|                                                                          |                                                                                         |       |  |                               |      |  |         |       |  
|Net Cash (Used in)/Generated from Financing Activities                    |                                                                                         |       |  |                               |      |  | (78.4   | )     |   |  | 304.8   |      
|                                                                          |                                                                                         |       |  |                               |      |  |         |       |  
|Effects of Foreign Exchange Rate Changes on Cash and Cash
    Equivalents |                                                                                         |       |  |                               |      |  | 82.9    |       |   |  | (8.6    | )    
|                                                                          |                                                                                         |       |  |                               |      |  |         |       |  
|Net Increase in Cash and Cash Equivalents                                 |                                                                                         |       |  |                               |      |  | 753.8   |       |   |  | 565.7   |      
|                                                                          |                                                                                         |       |  |                               |      |  |         |       |  
|Cash and Cash Equivalents as of January 1, 2005                           |                                                                                         |       |  |                               |      |  | 1,434.0 |       |   |  | 868.3   | (1)  
|Cash and Cash Equivalents as of December 31, 2005                         |                                                                                         |       |  |                               |      |  | 2,187.8 |       |   |  | 1,434.0 |      
|                                                                          |                                                                                         |       |  |                               |      |  |         |       |  
|                                                                          |                                                                                         |       |  |                               |      |  | 753.8   |       |   |  | 565.7   |      
|                                                                          |                                                                                         |       |  |                               |      |  |         |       |  






|    |                                                                                                                                                                                                                                                                                                                                                    
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | As a result of the IFRS transition, discontinued activities were
    restated on the opening balance as of January 1, 2004. The
    adjustment decreased the cash balance for an amount of
    24,1 million.
    Interests paid for years ended December 31, 2005 and 2004
    respectively amount to
    50.2 million
    and
    19.3 million.

Following the analyses performed for the 2005 IFRS closing,
some items of the 2004 IFRS accounts released in April 2005 have
been restated to enable comparison with 2005 accounts. These
immaterial reclassifications essentially relate to the
disclosure of deferred taxes in the balance sheet; regarding the
income statement of 2004, income from discontinued operations
has been reclassified in other operating income and expenses.
Additionally in 2005, some reclassifications have been made on
certain immaterial items of the balance sheet and the cash flow
statement since the release on February 23, 2006.




F-6



---



##### Table of Contents








|   |                                                               
|-- | --------------------------------------------------------------
|4. | CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS
    EQUITY

|                                                                |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          |        |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  |        |              |  |  |         |   |  |  |      |   |  |  |         |   | 
|--------------------------------------------------------------- | ----------------------------- | --------------------------------------------------------- | ---------- | - | ------ |  | ---- | -------- |  |  | -------- | - |  | -------- | ------ | ------ | ----------- |  | ------------- | ---------- |  |  | -------- | - |  | -------------- | ------ | - | --------- |  | ------ | ------------ |  |  | ------- | - |  |  | ---- | - |  |  | ------- | - | 
|                                                                |                               | Stock issued                                              |            |   |        |  |      |          |  |  | Foreign  |   |  |          |        | Net    |             |  |               |            |  |  |         
|                                                                |                               |                                                           |            |   |        |  |      |          |  |  | Currency |   |  |          |        | Income |             |  | Shareholders |            |  |  |          |  
|                                                                |                               | Number of                                                 |            |   | Common |  |      | Paid-in- |  |  | Retained |   |  | Treasury |        |        | Translation |  |               | Fair Value |  |  | (Parent  |   |  | Equity (Parent |        |   | Minority  |  |        |             
|                                                                |                               | Shares Issued                                             |            |   | Stock  |  |      | Surplus  |  |  | Earnings |   |  | Shares   |        |        | Reserve     |  |               | Reserve    |  |  | Company) |   |  | Company)       |        |   | Interests |  |        | Total Equity | 
|                                                                |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          |        |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  |        |              | 
|                                                                |                               | (Amounts in millions of Euro, except as otherwise stated) |           
|As of January 1, 2004                                           |                               |                                                           | 23,738,331 |   |        |  | 72.4 |          |  |  | 1,250.4  |   |  |          | 588.4  |        |             |  | (9.7          | )          |  |  |         |   |  |                | 5.8    |   |           |  | (19.7  | )            |  |  | 1,887.6 |   |  |  | 9.5  |   |  |  | 1,897.1 |  
|                                                                |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          |        |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  |        |              | 
|Total Income and Expense                                        |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          |        |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  |        |              |  |  |         |   |  |  |      |   |  |  |         |  
|                                                                | Recognized Directly in Equity |                                                           |            |   |        |  |      |         |  |  |          |  |  |          |        |       |             |  |               |           |  |  |          |  |  |                |        |  |           |  |        |             |  |  |         |  |  |  |      |  |  |  |         |  | 
|                                                                |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          |        |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  |        |              | 
|Net Income 2004                                                 |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          |        |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  | 111.8  |              |  |  | 111.8   |   |  |  | 2.4  |   |  |  | 114.2   |  
|                                                                |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          |        |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  |        |              | 
|Total Recognized Income 2004                                    |                               |                                                           |            |   |        |  |     |          |  |  |         |   |  |          |       |        |             |  |              |            |  |  |         |   |  |                |       |   |           |  | 111.8  |              |  |  | 111.8   |   |  |  | 2.4  |   |  |  | 114.2   |  
|                                                                |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          |        |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  |        |              | 
|Capital Increase                                                |                               |                                                           | 372,323    |   |        |  | 1.1  |          |  |  | 25.2     |   |  |          |       |        |             |  |              |            |  |  |         |   |  |                |       |   |           |  |       |              |  |  | 26.3    |   |  |  |     |   |  |  | 26.3    |  
|Appropriation of Net Income 2003 and Prepaid Dividends(1)       |                               |                                                           |            |   |        |  |     |          |  |  |         |   |  |          | (149.5 | )      |             |  |              |            |  |  |         |   |  |                |       |   |           |  | 19.7   |              |  |  | (129.8  | ) |  |  |     |   |  |  | (129.8  | )
|Treasury Shares                                                 |                               |                                                           |            |   |        |  |     |          |  |  |         |   |  |          |       |        |             |  | (22.7         | )          |  |  |         |   |  |                |       |   |           |  |       |              |  |  | (22.7   | ) |  |  |     |   |  |  | (22.7   | )
|Foreign Currency Translation Reserves                           |                               |                                                           |            |   |        |  |     |          |  |  |         |   |  |          |       |        |             |  |              |            |  |  | (34.3    | ) |  |                |       |   |           |  |       |              |  |  | (34.3   | ) |  |  | (2.1 | ) |  |  | (36.4   | )
|Stock Option Charge                                             |                               |                                                           |            |   |        |  |     |          |  |  |         |   |  |          |       |        |             |  |              |            |  |  |         |   |  |                | 5.8    |   |           |  |       |              |  |  | 5.8     |   |  |  |     |   |  |  | 5.8     |  
|Others                                                          |                               |                                                           |            |   |        |  |     |          |  |  |         |   |  |          | 6.9    |        |             |  |              |            |  |  |         |   |  |                |       |   |           |  |       |              |  |  | 6.9     |   |  |  |     |   |  |  | 6.9     |  
|                                                                |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          |        |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  |        |              | 
|As of December 31, 2004                                         |                               |                                                           | 24,110,654 |   |        |  | 73.5 |          |  |  | 1,275.6  |   |  |          | 445.8  |        |             |  | (32.4         | )          |  |  | (34.3    | ) |  |                | 11.6   |   |           |  | 111.8  |              |  |  | 1,851.6 |   |  |  | 9.8  |   |  |  | 1,861.4 |  
|                                                                |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          |        |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  |        |              | 
|First-time Application IAS 32/IAS 39 as of
    January 1, 2005: |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          |        |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  |        |              |  |  |         |   |  |  |      |   |  |  |         |  
|- Foreign Currency Translation Reserve                          |                               |                                                           |            |   |        |  |     |          |  |  |         |   |  |          |       |        |             |  |              |            |  |  |         |   |  |                | 11.2   |   |           |  |       |              |  |  | 11.2    |   |  |  |     |   |  |  | 11.2    |  
|- Valuation of Derivative Instruments                           |                               |                                                           |            |   |        |  |     |          |  |  |         |   |  |          |       |        |             |  |              |            |  |  |         |   |  |                | 30.0   |   |           |  |       |              |  |  | 30.0    |   |  |  |     |   |  |  | 30.0    |  
|IAS 32/IAS 39  Cash Flow Hedging(2)                            |                               |                                                           |            |   |        |  |     |          |  |  |         |   |  |          |       |        |             |  |              |            |  |  |         |   |  |                | (117.5 | ) |           |  |       |              |  |  | (117.5  | ) |  |  |     |   |  |  | (117.5  | )
|                                                                |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          |        |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  |        |              | 
|Total Income and Expense                                        |                               |                                                           |            |   |        |  |     |          |  |  |         |   |  |          |       |        |             |  |              |            |  |  |         |   |  |                | (76.3  | ) |           |  |       |              |  |  | (76.3   | ) |  |  |     |   |  |  | (76.3   | )
|Recognized Directly in Equity                                   |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          |        |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  |        |              |  |  |         |   |  |  |      |   |  |  |         |  
|                                                                |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          |        |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  |        |              | 
|Net Income 2005                                                 |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          |        |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  | 93.3   |              |  |  | 93.3    |   |  |  | 1.7  |   |  |  | 95.0    |  
|                                                                |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          |        |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  |        |              | 
|Total Recognized Income 2005                                    |                               |                                                           |            |   |        |  |     |          |  |  |         |   |  |          |       |        |             |  |              |            |  |  |         |   |  |                | (76.3  | ) |           |  | 93.3   |              |  |  | 17.0    |   |  |  | 1.7  |   |  |  | 18.7    |  
|                                                                |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          |        |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  |        |              | 
|Capital Increase                                                |                               |                                                           | 2,465,664  |   |        |  | 1.9  |          |  |  | 61.9     |   |  |          |       |        |             |  |              |            |  |  |         |   |  |                |       |   |           |  |       |              |  |  | 63.8    |   |  |  |     |   |  |  | 63.8    |  
|Appropriation of Net Income 2004 and Prepaid Dividend(3)        |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          | 79.8   |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  | (111.8 | )            |  |  | (32.0   | ) |  |  |     |   |  |  | (32.0   | )
|Split 4-for-1 Shares(4)                                         |                               |                                                           | 72,331,962 |   |        |  |     |          |  |  |         |   |  |          |       |        |             |  |              |            |  |  |         |   |  |                |       |   |           |  |       |              |  |  |        |   |  |  |     |   |  |  |        |  
|Treasury Shares                                                 |                               |                                                           | (34,108    | ) |        |  |     |          |  |  | (0.8     | ) |  |          |       |        |             |  | (20.0         | )          |  |  |         |   |  |                |       |   |           |  |       |              |  |  | (20.8   | ) |  |  |     |   |  |  | (20.8   | )
|Foreign Currency Translation Reserves                           |                               |                                                           |            |   |        |  |     |          |  |  |         |   |  |          |       |        |             |  |              |            |  |  | 38.8     |   |  |                |       |   |           |  |       |              |  |  | 38.8    |   |  |  | 2.4  |   |  |  | 41.2    |  
|Stock Option Charge                                             |                               |                                                           |            |   |        |  |     |          |  |  |         |   |  |          |       |        |             |  |              |            |  |  |         |   |  |                | 5.4    |   |           |  |       |              |  |  | 5.4     |   |  |  |     |   |  |  | 5.4     |  
|Convertible Bonds  Split Accounting(5)                         |                               |                                                           |            |   |        |  |     |          |  |  |         |   |  |          |       |        |             |  |              |            |  |  |         |   |  |                | 32.8   |   |           |  |       |              |  |  | 32.8    |   |  |  |     |   |  |  | 32.8    |  
|Others                                                          |                               |                                                           |            |   |        |  |     |          |  |  |         |   |  |          | (2.9   | )      |             |  |              |            |  |  |         |   |  |                |       |   |           |  |       |              |  |  | (2.9    | ) |  |  |     |   |  |  | (2.9    | )
|                                                                |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          |        |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  |        |              | 
|As of December 31, 2005                                         |                               |                                                           | 98,874,172 |   |        |  | 75.4 |          |  |  | 1,336.7  |   |  |          | 522.7  |        |             |  | (52.4         | )          |  |  | 4.5      |   |  |                | (26.5  | ) |           |  | 93.3   |              |  |  | 1,953.7 |   |  |  | 13.9 |   |  |  | 1,967.6 |  
|                                                                |                               |                                                           |            |   |        |  |      |          |  |  |          |   |  |          |        |        |             |  |               |            |  |  |          |   |  |                |        |   |           |  |        |              | 






|    |                                                                                                                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes the payment of 2003 dividends, of the precept for
    82.3 million
    and of the 2004 interim dividend for
    47.5 million.                                                                                                                    
|   
|(2) | First-time application of the IAS 32 and 39 as of
    January 1, 2005, regarding the foreign exchange hedging
    financial instruments.                                                                                                                    
|   
|(3) | Includes the payment of 2004 dividends for
    32.0 million,
    after the payment of the 2004 interim dividend for
    47.5 million.                                                                                                                     
|   
|(4) | On May 13, 2005, Technips ordinary shares were split
    4-for-1 on the decision of the Combined Shareholders
    Meeting of April 29, 2005.                                                                                                              
|   
|(5) | First-time application of the IAS 32 and 39 as of
    January 1, 2005, regarding the OCEANE convertible bonds:
    split accounting into a separate financial debt component and a
    shareholders equity component (see
    Note 23  Convertible Bonds).

Following the analyses performed for the 2005 IFRS closing,
some items of the 2004 IFRS accounts released in April 2005 have
been restated to enable comparison with 2005 accounts. These
immaterial reclassifications essentially relate to the
disclosure of deferred taxes in the balance sheet; regarding the
income statement of 2004, income from discontinued operations
has been reclassified in other operating income and expenses.
Additionally in 2005, some reclassifications have been made on
certain immaterial items of the balance sheet and the cash flow
statement since the release on February 23, 2006.




F-7



---



##### Table of Contents






5.     NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS






| |   |                                                                                                                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | § | Lump sum or cost-to-costs engineering service contracts
    performed over a short period;                                                                                                                                                                                                          
|
| | § | Engineering, manufacturing, installation and commissioning
    service contract lasting approximately 12 months;                                                                                                                                                                                    
|
| | § | 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.




Note 1  Summary of Significant Accounting
Principles







| |                        
| | -----------------------
| | A. Accounting Framework



(a) Terms of IFRS
First-Time Application










| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Business Combinations:Technip has elected not to
    restate, as provided by IFRS 3, business combinations prior
    to January 1, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| | Property, Plant and Equipment, and Intangible Assets:Technip has elected not to record the fair value or the
    revaluation of its assets as assumed cost. However, the Group
    performed a review of useful lives of amortization and residual
    values of main assets.                                                                                                                                                                                                                                                                                                                         
|
| | Translation Gains and Losses in relation to Foreign
    Entity: Technip has elected to reclassify cumulative
    translation gains and losses at January 1, 2004 under
    consolidated reserves. If a subsidiary is disposed of, the
    disposal gain or loss will only include the translation gains
    and losses recognized after January 1, 2004.                                                                                                                                                                                                                                              
|
| | Retirement Benefit Obligations:Technip has elected to
    account for residual cumulated actuarial gains and losses in
    equity for post-employment benefits, not recognized as of
    January 1, 2004, and to use the corridor method
    for the future actuarial gains and losses. As per this method,
    actuarial gains and losses that exceed 10% of the greater of the
    present value of the defined obligation and the fair value of
    the plan assets are recognized on a straight-line basis over the
    remaining working lives of the employees participating in that
    plan.
|
| | Share-based Payments:Technip has elected to apply
    IFRS 2 retrospectively in respect of share option plans
    granted since November 7, 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                     

F-8



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Insurance Contracts:Technip has elected to apply
    IFRS 4 as of January 1, 2004 in respect of insurance
    contracts. This standard had no impact as of January 1,
    2004, December 31, 2004 nor December 31, 2005.
|
| | Financial Instruments:Technip has elected to apply IAS
    32 and IAS 39 as from January 1, 2005. Following are the
    impacts of these standards in 2005:                                                             



| |   |                                                                                                                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | Split accounting of compound financial instruments applied to
    the OCEANE convertible bonds. It generated an increase in equity
    and a reduction in convertible bonds (non-current financial
    debt) for
    32.8 million
    as of January 1, 2005.
|
| | - | Accounting in the balance sheet of the fair value in respect of
    financial instruments and mainly foreign exchange hedging
    instruments.                                                                                                               

(b) Ongoing IFRS Texts or
Projects whose Anticipated Application is Allowed Starting
2005




IFRS 7: Disclosures on Financial Instruments




Amendments to IAS 19: Employee Benefits  Actuarial
Gains and Losses, Group Plans and Disclosures




Amendments to IAS 39 Revised: Financial Instruments,
Accounting and Valuation, as regards Cash Flow Hedge Accounting
Related to Forecast Intragroup Transactions




IFRIC 4: Determining whether an Arrangement Contains a
Lease




IFRIC 5: Rights to Interests arising from Decommissioning,
Restoration and Environmental Rehabilitation Funds






B. Consolidation
Principles








F-9



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Note 35  Main Consolidated Companies and
Equity Associates













C. Rules and
Estimates






(a) Use of Estimates




Note 1 C. (b) Construction
Contracts Note 32(c) 
Off-balance sheet commitments and contingencies




F-10



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




(b) Construction
Contracts








| |   |                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | § | For all contracts, which include construction services subjected
    to performance commitments (lump-sum turnkey contracts), the
    percentage of completion is based on technical milestones
    defined for the main components of the contracts, once their
    progress is deemed sufficient;
|
| | § | For other construction contracts, the percentage of completion
    is recognized based on the ratio between costs incurred to date
    and estimated total costs at completion.                                                                                                                    







| |   |                                                                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | § | The purchase of material, the subcontracting cost of
    engineering, the cost of markets, and every other related cost
    directly linked to the contract.                                                                                                                                    
|
| | § | The labor cost and its related social charges which are directly
    connected with contracts. The man-hour rates taken into account
    are based on standard level of activity. Selling costs, research
    and development costs and financial costs are excluded from
    those evaluations.













| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | Progress payments made by customers related to unrealized works
    are recognized under the Advances Received liability
    item.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| | - | For each construction contract, the accumulated costs incurred,
    as well as the gross margin recognized at the contracts
    percentage of completion (plus accruals for foreseeable losses
    if needed), after deducting the progress payments invoiced to
    the client, are shown on the asset side under the
    Construction Contracts  Amounts Due from
    Clients if the balance of those combined components is a
    debit; if the balance is a credit, these ones are shown on the
    liability side under the Construction
    Contracts  Amounts Due to Clients line item.

F-11



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






| |   |                                                                                                                                                                                                                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | § | The balance of Construction Contracts  Due from
    Clients (which at that time amounts to the total
    contracts sale price), less accumulated progress payments
    received under this contract at this date, is invoiced to the
    customer and recorded as current receivables on contracts (see
    Note 18  Trade Receivables).
|
| | § | To get the acceptance certificate from the client, if necessary,
    accrued liabilities may be recorded to cover pending expenses
    and are recorded as other current payables in the balance sheet.                                                                                                                                      



Note 17  Construction Contracts


(c) Foreign Currency
Transactions and Financial Instruments


Foreign Currency Transactions






Translation of Financial Statements for Foreign Companies




Derivatives and Hedging Processing










F-12



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)








| |   |                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------
| | § | Derivatives qualified for hedging are classified as current
    assets and liabilities, as they follow the operating cycle.
|
| | § | Derivatives not qualified for hedging are classified as current
    assets and liabilities.                                





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | § | Regarding cash flow hedge, the portion of the gain or loss
    corresponding to the effectiveness of the hedging instrument is
    recognized directly in equity, and the ineffective portion of
    the gain or loss on the hedging instrument is posted on the
    profit and loss account. The exchange gain or loss on derivative
    cash flow hedging instruments, deferred in equity, is
    reclassified in the net income of the period(s) whenever the
    forecast hedged transaction affects the profit or loss.
|
| | § | The variations of fair value hedge incurred by derivative
    instruments are posted as financial income or expenses. The
    ineffective portion of the gain or loss immediately impacts net
    income. The carrying amount of a hedged item is adjusted by the
    gain or loss on this hedged item allocable to the hedged risk
    and is recorded in the income statement.                                                                                                                                            
|
| | § | The changes in fair value of derivative financial instruments
    that do not qualify for hedging are directly recognized a
    financial income or expenses.                                                                                                                                                                                                                                                                                                                                                               



Bid Contracts in Foreign Currency






(d) Business
Combinations








F-13



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






(e) 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    | 













(f) Intangible Assets


Research and Development Costs Generated Internally






| |   |                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------
| | § | The projects are clearly identified;                                                                      
|
| | § | The Group is able to measure reliably the expenditure incurred
    by each project during its development;
|
| | § | The Group is able to demonstrate the technical feasibility of
    the project;                            
|
| | § | The Group has the financial and technical resources available to
    achieve the project;                 

F-14



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |   |                                                                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | § | The Group can demonstrate its intention to complete, to use or
    to commercialize products resulting from the project; and                                                    
|
| | § | The Group is able to demonstrate the existence of a market for
    the output of the intangible asset, or, if it is used
    internally, the usefulness of the intangible asset.



Other Intangible Assets




(g) Other Financial Assets
(Non-Current)




Non-Consolidated Investments








Receivables related to Investments




Security Deposits and Others




(h) Inventories




(i) Advances Paid to
Suppliers




F-15



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(j) Trade Receivables






(k) Cash and Cash
Equivalents




(l) Provisions






| |   |                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | § | The Group has a present obligation (legal or constructive) as a
    result of a past event;                                                                                        
|
| | § | The settlement of the obligation will likely require an outflow
    of resources embodying economic benefits; and                                                                  
|
| | § | The amount of the obligation can be reliably estimated;
    provisions are measured according to the risk assessment or the
    exposed charge, based upon the best-known elements.

Current Provisions


Contingencies related to contracts


Restructuring


Non-Current Provisions


Employee benefits










(m) Deferred Income Tax






F-16



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)








| |   |                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------
| | § | Taxable results forecasts;                                                                                                                      
|
| | § | Analysis of the past taxable results; and                                                                                                       
|
| | § | Existence of significant and non-recurrent income and expenses,
    included in the past tax results, which should not repeat in the
    future.







(n) Financial Result on
Contracts




(o) Income/(Loss) from
Discontinued Operations




(p) Net Earnings per
Share








(q) Treasury Shares




(r) Stock Options




F-17



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






(s) Financial Debts
(Current and Non-Current)















Note 2  Changes in Scope of Consolidation


Year Ended December 31, 2005






Year Ended December 31, 2004






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | § | The disposals of EHR and IG Spa. The German company, EHR, was
    sold on April 7, 2004 for
    12.2 million.
    The net consolidated gain on EHR disposal was of
    2.3 million.
    The Italian company, IG Spa, was sold on April 23,
    2004 for
    2.0 million.
    The net consolidated gain on IG Spa disposal was of
    0.7 million.
    As per each disposal agreement, the companies EHR and IG Spa
    have been considered as sold as of January 1, 2004.

F-18



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |   |                                                                                                                                                                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | § | The disposal of 75% of KTI Spa shares to KTI employees in
    November 2004, with a retrospective effect as of January 1,
    2004. No gain has been generated by this transaction. Following
    this part disposal, the remaining 25% still under Company
    control is consolidated using the equity method for the year
    ended December 31, 2004.
|
| | § | As the Group transferred its unstrategic operations, it also
    sold assets of Technip Offshore Moorings Inc. Company at their
    book value, at the end of the year 2004.                                                                                                                                                                             




Note 3  Segment Information









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



| |   |                  
| | - | -----------------
| |  | Business Segments





| |   |                                                                                                                                                                                                                                                                  
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | § | The SURF segment (Subsea Umbilicals, Risers and Flowlines),
    which includes the manufacturing, the supply and the
    installation of sub-marine equipments.                                                                                                  
|
| | § | The Facilities segment, which includes the fabrication of
    floaters, fixed platforms and topsides.                                                                                                                                                            
|
| | § | The Onshore Downstream segment, which comprises all business
    units in charge of engineering and construction of petrochemical
    and refining units as well as upstream facilities, including gas
    treatment units, LNG facilities and onshore pipelines.
|
| | § | The Industries segment, which is devoted to engineering and
    construction of non-oil related facilities, such as
    pharmaceutical or chemical units, power plants, cement
    factories, industrial buildings and infrastructures.                          
|
| | § | The Corporate segment, which comprises the Holding activities,
    the reinvoicing of group services, management fees, EDP services
    and reinsurance activities.                                                                                              





F-19



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       |          |       |  |  |      |   |  |  |          |       | 
|------------------------------------------------------------------------------ | ---------------------------------------------------------------- | ------------------- | ------- | ----- | ---------- | ------- | ------- | ---------- |  |  | ---------- | ---- | - | ------------ | ---------- | --- | ------------- | ------------ | ------- | ---------- |  |  | ---------- | ---- |  | ----- | -------- | ----- |  |  | ---- | - |  |  | -------- | ----- | 
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   | Total        |            |     |               |              |        
|                                                                               |                                                                  |                     |         |       |            | Onshore |         |            |  |  |            |      |   |              | Continuing |     |               | Discontinued |         |            | 
|Year ended December 31, 2005                                                   |                                                                  | SURF                |         |       | Facilities |         |         | Downstream |  |  | Industries |      |   | Corporate(1) |            |     | Not Allocable |              |         | Operations |  |  | Operations |      |  | Total |         
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       |         
|                                                                               |                                                                  | In millions of Euro |        
|Revenues                                                                       |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       |          |       |  |  |      |   |  |  |          |      
|Sales to External Customers                                                    |                                                                  |                     | 1,797.6 |       |            |         | 1,013.4 |            |  |  | 2,318.2    |      |   |              | 246.9      |     |               |              |        |            |  |  |            |      |  |       | 5,376.1  |       |  |  |     |   |  |  | 5,376.1  |      
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       |         
|Total Revenues                                                                 |                                                                  |                     | 1,797.6 |       |            |         | 1,013.4 |            |  |  | 2,318.2    |      |   |              | 246.9      |     |               |              |        |            |  |  |            |      |  |       | 5,376.1  |       |  |  |     |   |  |  | 5,376.1  |      
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       |         
|Gross Margin                                                                   |                                                                  |                     | 243.7   |       |            |         | 91.3    |            |  |  | 195.1      |      |   |              | 28.0       |     |               |              |        |            |  |  |            |      |  |       | 558.1    |       |  |  |     |   |  |  | 558.1    |      
|Income/(Loss) From Operations                                                  |                                                                  |                     | 118.8   |       |            |         | 27.1    |            |  |  | 88.3       |      |   |              | 6.0        |     |               |              | (9.2    | )          |  |  |            |      |  |       | 231.0    |       |  |  |     |   |  |  | 231.0    |      
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       |         
|Financial Income/(Expenses)                                                    |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  | (88.8      | )    |  |       | (88.8    | )     |  |  |      |   |  |  | (88.8    | )    
|Share of Income/(Loss) of Associates Accounted for Using the
    Equity Method |                                                                  |                     |         |       |            |         |         |            |  |  | 1.3        |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       | 1.3      |       |  |  |      |   |  |  | 1.3      |      
|Income Tax Expense                                                             |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  | (43.5      | )    |  |       | (43.5    | )     |  |  |      |   |  |  | (43.5    | )    
|Discontinued Operations                                                        |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       |         |       |  |  | (5.0 | ) |  |  | (5.0     | )    
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       |         
|Net Income/(Loss) for the Year                                                 |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       | 100.0    |       |  |  | (5.0 | ) |  |  | 95.0     |      
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       |         
|Assets and Liabilities                                                         |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       |          |       |  |  |      |   |  |  |          |      
|Segment Assets                                                                 |                                                                  |                     | 3,427.5 |       |            |         | 1,112.2 |            |  |  | 2,091.3    |      |   |              | 216.2      |     |               |              | 158.4   |            |  |  |            |      |  |       | 7,005.6  |       |  |  |      |   |  |  | 7,005.6  |      
|Investments in Associates Accounted for Using the Equity
    Method            |                                                                  |                     |        |       |            |         |        |            |  |  | 9.7        |      |   |              |           |     |               |              |        |            |  |  |            |      |  |       | 9.7      |       |  |  |      |   |  |  | 9.7      |      
|Unallocated Assets                                                             |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  | 281.7      |      |  |       | 281.7    |       |  |  |      |   |  |  | 281.7    |      
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       |         
|Total Assets                                                                   |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       | 7,297.0  |       |  |  |     |   |  |  | 7,297.0  |      
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       |         
|Segment Liabilities(2)                                                         |                                                                  |                     | 936.0   |       |            |         | 239.9   |            |  |  | 404.2      |      |   |              | 1,914.3    |     |               |              | 1,708.8 |            |  |  |            |      |  |       | 5,203.2  |       |  |  |      |   |  |  | 5,203.2  |      
|Unallocated Liabilities                                                        |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  | 2,093.8    |      |  |       | 2,093.8  |       |  |  |      |   |  |  | 2,093.8  |      
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       |         
|Total Liabilities                                                              |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       | 7,297.0  |       |  |  |     |   |  |  | 7,297.0  |      
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       |         
|Other Segment Information                                                      |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       |          |       |  |  |      |   |  |  |          |      
|Backlog(3)                                                                     |                                                                  |                     | 2,687.9 |       |            |         | 1,206.7 |            |  |  | 7,126.9    |      |   |              | 148.0      |     |               |              |        |            |  |  |            |      |  |       | 11,169.5 |       |  |  |      |   |  |  | 11,169.5 |      
|Capital Expenditure:(4)                                                        |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       |          |       |  |  |      |   |  |  |          |      
|                                                                               | Property, Plant and Equipment                                    |                     |         | 138.6 |            |         |         | 10.8       |  |  |            | 16.7 |   |              |            | 1.3 |               |              |         |           |  |  |            |      |  |       |          | 167.4 |  |  |      |   |  |  |          | 167.4 | 
|                                                                               | Intangible Assets                                                |                     |         | 0.1   |            |         |         | 1.0        |  |  |            | 1.1  |   |              |            | 0.1 |               |              |         | 0.8        |  |  |            |      |  |       |          | 3.1   |  |  |      |   |  |  |          | 3.1   | 
|Depreciation of Property, Plant and Equipment                                  |                                                                  |                     | 101.7   |       |            |         | 11.4    |            |  |  | 9.0        |      |   |              | 2.0        |     |               |              | 2.1     |            |  |  |            |      |  |       | 126.2    |       |  |  |      |   |  |  | 126.2    |      
|Amortization of Intangible Assets                                              |                                                                  |                     | 6.0     |       |            |         | 3.5     |            |  |  | 2.2        |      |   |              | 0.4        |     |               |              | 5.0     |            |  |  |            |      |  |       | 17.1     |       |  |  |      |   |  |  | 17.1     |      
|Impairment of Goodwill                                                         |                                                                  |                     |        |       |            |         |        |            |  |  |           |      |   |              |           |     |               |              |        |            |  |  |            |      |  |       |         |       |  |  |      |   |  |  |         |      
|Impairment of Intangible Assets                                                |                                                                  |                     |        |       |            |         |        |            |  |  |           |      |   |              |           |     |               |              |        |            |  |  |            |      |  |       |         |       |  |  |      |   |  |  |         |      
|Reversals of Impairment Losses                                                 |                                                                  |                     |        |       |            |         |        |            |  |  |           |      |   |              |           |     |               |              |        |            |  |  |            |      |  |       |         |       |  |  |      |   |  |  |         |      
|Restructuring Costs                                                            |                                                                  |                     |        |       |            |         |        |            |  |  | 0.9        |      |   |              |           |     |               |              |        |            |  |  |            |      |  |       | 0.9      |       |  |  |      |   |  |  | 0.9      |      
|Non-Cash Expenses:                                                             |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |   |              |            |     |               |              |         |            |  |  |            |      |  |       |          |       |  |  |      |   |  |  |          |      
|                                                                               | Amortization of Convertible Bond Redemption Premium              |                     |         |      |            |         |         |           |  |  |            |     |   |              |            |    |               |              |         |           |  |  |            | 13.3 |  |       |          | 13.3  |  |  |      |   |  |  |          | 13.3  | 
|                                                                               | Charge related to Convertible Bond Split Accounting              |                     |         |      |            |         |         |           |  |  |            |     |   |              |            |    |               |              |         |           |  |  |            | 16.6 |  |       |          | 16.6  |  |  |      |   |  |  |          | 16.6  | 
|                                                                               | Stock Option Charge                                              |                     |         |      |            |         |         |           |  |  |            |     |   |              |            |    |               |              |         | 5.4        |  |  |            |      |  |       |          | 5.4   |  |  |      |   |  |  |          | 5.4   | 
|                                                                               | Non-Current Provisions (including Employee Benefits)             |                     |         | 6.2   |            |         |         | 0.8        |  |  |            | 8.9  |   |              |            | 1.5 |               |              |         | 2.1        |  |  |            |      |  |       |          | 19.5  |  |  |      |   |  |  |          | 19.5  | 
|                                                                               | Fair Value (Gains)/Losses on Derivatives through Profit and Loss |                     |         | 4.8   |            |         |         | 0.1        |  |  |            | (1.7 | ) |              |            |    |               |              |         |           |  |  |            |      |  |       |          | 3.2   |  |  |      |   |  |  |          | 3.2   | 






|    |                                                                                                                                                                                                                           
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Reinvoicing performed by the Corporate segment regarding group
    services provided to other segments are not presented in the
    section Segment information, as they are not related
    to the activity of Technip.
|   
|(2) | The segment liabilities of the Corporate segment include
    financial debts such as convertible bonds OCEANE, bond loan and
    other borrowings. Financial charges related to these debts are
    not allocated.        
|   
|(3) | The backlog is defined as the difference between the total
    contractual sale prices of all contracts in force and the
    cumulated revenues recognized at that date on these contracts.                               

F-20



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|    |                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------
|(4) | Assets under construction are not included in capital
    expenditures on intangible and tangible assets.

|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       |         |       |  |  |   |  |  |  |         |       | 
|------------------------------------------------------------------------------ | ---------------------------------------------------------------- | ------------------- | ------- | ----- | ---------- | ------- | ------- | ---------- |  |  | ---------- | ---- |  | ------------ | ---------- | --- | ------------- | ------------ | ------- | ---------- |  |  | ---------- | ---- |  | ----- | ------- | ----- |  |  | - |  |  |  | ------- | ----- | 
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  | Total        |            |     |               |              |        
|                                                                               |                                                                  |                     |         |       |            | Onshore |         |            |  |  |            |      |  |              | Continuing |     |               | Discontinued |         |            | 
|Year ended December 31, 2004                                                   |                                                                  | SURF                |         |       | Facilities |         |         | Downstream |  |  | Industries |      |  | Corporate(1) |            |     | Not Allocable |              |         | Operations |  |  | Operations |      |  | Total |        
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       |        
|                                                                               |                                                                  | In millions of Euro |        
|Revenues                                                                       |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       |         |       |  |  |   |  |  |  |         |      
|Sales to External Customers                                                    |                                                                  |                     | 1,422.1 |       |            |         | 1,066.6 |            |  |  | 2,384.1    |      |  |              | 268.1      |     |               |              |        |            |  |  |            |      |  |       | 5,140.9 |       |  |  |  |  |  |  | 5,140.9 |      
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       |        
|Total Revenues                                                                 |                                                                  |                     | 1,422.1 |       |            |         | 1,066.6 |            |  |  | 2,384.1    |      |  |              | 268.1      |     |               |              |        |            |  |  |            |      |  |       | 5,140.9 |       |  |  |  |  |  |  | 5,140.9 |      
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       |        
|Gross Margin                                                                   |                                                                  |                     | 256.6   |       |            |         | 81.4    |            |  |  | 204.2      |      |  |              | 20.4       |     |               |              | 0.5     |            |  |  |            |      |  |       | 563.1   |       |  |  |   |  |  |  | 563.1   |      
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       |        
|Income/(Loss) From Operations                                                  |                                                                  |                     | 146.5   |       |            |         | 17.5    |            |  |  | 92.1       |      |  |              | (7.1       | )   |               |              | (15.4   | )          |  |  |            |      |  |       | 233.6   |       |  |  |   |  |  |  | 233.6   |      
|Financial Income/(Expenses)                                                    |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  | (66.4      | )    |  |       | (66.4   | )     |  |  |   |  |  |  | (66.4   | )    
|Share of Income/(Loss) of Associates Accounted for Using the
    Equity Method |                                                                  |                     |         |       |            |         |         |            |  |  | 1.2        |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       | 1.2     |       |  |  |   |  |  |  | 1.2     |      
|Income Tax Expense                                                             |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  | (54.2      | )    |  |       | (54.2   | )     |  |  |   |  |  |  | (54.2   | )    
|Discontinued Operations                                                        |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       |        |       |  |  |  |  |  |  |        |      
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       |        
|Net Income/(Loss) for the Year                                                 |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       | 114.2   |       |  |  |  |  |  |  | 114.2   |      
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       |        
|Assets and Liabilities                                                         |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       |         |       |  |  |   |  |  |  |         |      
|Segment Assets                                                                 |                                                                  |                     | 3,448.1 |       |            |         | 927.7   |            |  |  | 1,581.2    |      |  |              | 182.5      |     |               |              | 155.1   |            |  |  |            |      |  |       | 6,294.6 |       |  |  |   |  |  |  | 6,294.6 |      
|Investments in Associates Accounted for Using the Equity
    Method            |                                                                  |                     |        |       |            |         |        |            |  |  | 19.9       |      |  |              |           |     |               |              |        |            |  |  |            |      |  |       | 19.9    |       |  |  |   |  |  |  | 19.9    |      
|Unallocated Assets                                                             |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  | 103.1      |      |  |       | 103.1   |       |  |  |   |  |  |  | 103.1   |      
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       |        
|Total Assets                                                                   |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       | 6,417.6 |       |  |  |  |  |  |  | 6,417.6 |      
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       |        
|Segment Liabilities(2)                                                         |                                                                  |                     | 882.9   |       |            |         | 513.1   |            |  |  | 1,347.8    |      |  |              | 165.9      |     |               |              | 1,492.5 |            |  |  |            |      |  |       | 4,402.2 |       |  |  |   |  |  |  | 4,402.2 |      
|Unallocated Liabilities                                                        |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  | 2,015.4    |      |  |       | 2,015.4 |       |  |  |   |  |  |  | 2,015.4 |      
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       |        
|Total Liabilities                                                              |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       | 6,417.6 |       |  |  |  |  |  |  | 6,417.6 |      
|                                                                               |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       |        
|Other Segment Information                                                      |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       |         |       |  |  |   |  |  |  |         |      
|Backlog(3)                                                                     |                                                                  |                     | 1,859.9 |       |            |         | 944.4   |            |  |  | 3,758.4    |      |  |              | 216.3      |     |               |              |        |            |  |  |            |      |  |       | 6,779.0 |       |  |  |   |  |  |  | 6,779.0 |      
|Capital Expenditure:(4)                                                        |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       |         |       |  |  |   |  |  |  |         |      
|                                                                               | Property, Plant and Equipment                                    |                     |         | 108.4 |            |         |         | 8.7        |  |  |            | 16.1 |  |              |            | 1.4 |               |              |         |           |  |  |            |      |  |       |         | 134.6 |  |  |   |  |  |  |         | 134.6 | 
|                                                                               | Intangible Assets                                                |                     |         |      |            |         |         | 0.6        |  |  |            | 1.0  |  |              |            | 0.1 |               |              |         | 5.0        |  |  |            |      |  |       |         | 6.7   |  |  |   |  |  |  |         | 6.7   | 
|Depreciation of Property, Plant and Equipment                                  |                                                                  |                     | 91.0    |       |            |         | 13.3    |            |  |  | 11.3       |      |  |              | 1.6        |     |               |              | 0.5     |            |  |  |            |      |  |       | 117.7   |       |  |  |   |  |  |  | 117.7   |      
|Amortization of Intangible Assets                                              |                                                                  |                     | 6.0     |       |            |         | 3.8     |            |  |  | 1.1        |      |  |              | 0.1        |     |               |              | 6.7     |            |  |  |            |      |  |       | 17.7    |       |  |  |   |  |  |  | 17.7    |      
|Impairment of Goodwill                                                         |                                                                  |                     |        |       |            |         |        |            |  |  |           |      |  |              |           |     |               |              |        |            |  |  |            |      |  |       |        |       |  |  |   |  |  |  |        |      
|Impairment of Intangible Assets                                                |                                                                  |                     |        |       |            |         |        |            |  |  |           |      |  |              |           |     |               |              |        |            |  |  |            |      |  |       |        |       |  |  |   |  |  |  |        |      
|Reversals of Impairment Losses                                                 |                                                                  |                     |        |       |            |         |        |            |  |  |           |      |  |              |           |     |               |              |        |            |  |  |            |      |  |       |        |       |  |  |   |  |  |  |        |      
|Restructuring Costs                                                            |                                                                  |                     |        |       |            |         |        |            |  |  | 8.3        |      |  |              | 3.7        |     |               |              |        |            |  |  |            |      |  |       | 12.0    |       |  |  |   |  |  |  | 12.0    |      
|Non-Cash Expenses:                                                             |                                                                  |                     |         |       |            |         |         |            |  |  |            |      |  |              |            |     |               |              |         |            |  |  |            |      |  |       |        |       |  |  |   |  |  |  |         |      
|                                                                               | Amortization of Convertible Bond Redemption Premium              |                     |         |      |            |         |         |           |  |  |            |     |  |              |            |    |               |              |         |           |  |  |            | 13.1 |  |       |         | 13.1  |  |  |   |  |  |  |         | 13.1  | 
|                                                                               | Charge related to Convertible Bond Split Accounting              |                     |         |      |            |         |         |           |  |  |            |     |  |              |            |    |               |              |         |           |  |  |            |      |  |       |         |      |  |  |   |  |  |  |         |      | 
|                                                                               | Stock Option Charge                                              |                     |         |      |            |         |         |           |  |  |            |     |  |              |            |    |               |              |         | 5.8        |  |  |            |      |  |       |         | 5.8   |  |  |   |  |  |  |         | 5.8   | 
|                                                                               | Non-Current Provisions (including Employee Benefits)             |                     |         | 0.3   |            |         |         | 0.3        |  |  |            | 4.2  |  |              |            | 0.7 |               |              |         |           |  |  |            |      |  |       |         | 5.5   |  |  |   |  |  |  |         | 5.5   | 
|                                                                               | Fair Value (Gains)/Losses on Derivatives through Profit and Loss |                     |         |      |            |         |         |           |  |  |            |     |  |              |            |    |               |              |         |           |  |  |            |      |  |       |         |      |  |  |   |  |  |  |         |      | 






|    |                                                                                                                                                                                                                           
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Reinvoicing performed by the Corporate segment regarding group
    services provided to other segments are not presented in the
    section Segment information, as they are not related
    to the activity of Technip.
|   
|(2) | The segment liabilities of the Corporate segment include
    financial debts such as convertible bonds OCEANE, bond loan and
    other borrowings. Financial charges related to these debts are
    not allocated.        

F-21



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|    |                                                                                                                                                                                            
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | The backlog is defined as the difference between the total
    contractual sale prices of all contracts in force and the
    cumulated revenues recognized at that date on these contracts.
|   
|(4) | Assets under construction are not included in capital
    expenditures on intangible and tangible assets.                                                                                  






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



| |   |                      
| | - | ---------------------
| |  | Geographical Segments











| |   |              
| | - | -------------
| | § | Asia-Pacific;
|
| | § | Americas.    







|                                                                |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |         |     |               |  |         |       |  |  |         |      |  |  |          |       | 
|--------------------------------------------------------------- | ----------------------------- | ------------------- | ------- | ---- | ------ |  | ------- | ----------- |  |  | ------------ | --- |  | -------- | ------- | --- | ------------- |  | ------- | ----- |  |  | ------- | ---- |  |  | -------- | ----- | 
|                                                                |                               | Europe,             |         |      |        |  |         |             |  |  |              |     |  |          |        
|                                                                |                               | Russia,             |         |      |        |  |         |             |  |  |              |     |  |          |        
|                                                                |                               | Central Asia        |         |      |        |  |         |             |  |  |              |     |  |          |        
|Year ended December 31, 2005                                    |                               | (1)                 |         |      | Africa |  |         | Middle-East |  |  | Asia-Pacific |     |  | Americas |         |     | Not Allocable |  |         | Total | 
|                                                                |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |         |     |               |  |         |       | 
|                                                                |                               | In millions of Euro |        
|Revenues                                                        |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |         |     |               |  |         |       |  |  |         |      |  |  |          |      
|Sales to External Customers                                     |                               |                     | 1,382.9 |      |        |  | 1,258.4 |             |  |  | 1,108.1      |     |  |          | 583.4   |     |               |  | 1,044.5 |       |  |  |         |      |  |  | 5,377.3  |      
|Less Sales Attributable to Discontinued Operations              |                               |                     |        |      |        |  |        |             |  |  |             |     |  |          |        |     |               |  | (1.2    | )     |  |  |         |      |  |  | (1.2     | )    
|                                                                |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |         |     |               |  |         |       | 
|Revenues by Region                                              |                               |                     | 1,382.9 |      |        |  | 1,258.4 |             |  |  | 1,108.1      |     |  |          | 583.4   |     |               |  | 1,043.3 |       |  |  |         |      |  |  | 5,376.1  |      
|                                                                |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |         |     |               |  |         |       | 
|Income/(Loss) from Operations                                   |                               |                     | 162.2   |      |        |  | (42.5   | )           |  |  | 50.5         |     |  |          | 27.2    |     |               |  | 33.6    |       |  |  |        |      |  |  | 231.0    |      
|                                                                |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |         |     |               |  |         |       | 
|Assets                                                          |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |         |     |               |  |         |       |  |  |         |      |  |  |          |      
|Segment Assets(2)                                               |                               |                     | 601.0   |      |        |  | 168.5   |             |  |  | 493.1        |     |  |          | 210.5   |     |               |  | 582.3   |       |  |  | 2,864.2 |      |  |  | 4,919.6  |      
|Investments in Associates Accounted for Using the Equity Method |                               |                     | 1.4     |      |        |  |        |             |  |  | 8.3          |     |  |          |        |     |               |  |        |       |  |  |        |      |  |  | 9.7      |      
|Unallocated Assets(3)                                           |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |         |     |               |  |         |       |  |  | 2,367.7 |      |  |  | 2,367.7  |      
|                                                                |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |         |     |               |  |         |       | 
|Total Assets                                                    |                               |                     | 602.4   |      |        |  | 168.5   |             |  |  | 501.4        |     |  |          | 210.5   |     |               |  | 582.3   |       |  |  | 5,231.9 |      |  |  | 7,297.0  |      
|                                                                |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |         |     |               |  |         |       | 
|Other Segment Information                                       |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |         |     |               |  |         |       |  |  |         |      |  |  |          |      
|Backlog(4)                                                      |                               |                     | 961.3   |      |        |  | 2,007.9 |             |  |  | 5,099.4      |     |  |          | 1,014.2 |     |               |  | 2,086.7 |       |  |  |         |      |  |  | 11,169.5 |      
|Capital Expenditures:(5)                                        |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |         |     |               |  |         |       |  |  |         |      |  |  |         |      
|                                                                | Property, Plant and Equipment |                     |         | 39.7 |        |  |         | 49.6        |  |  |              | 6.0 |  |          |         | 4.2 |               |  |         | 12.7  |  |  |         | 55.2 |  |  |          | 167.4 | 
|                                                                | Intangible Assets             |                     |         | 0.6  |        |  |         |            |  |  |              | 0.4 |  |          |         | 0.1 |               |  |         | 0.6   |  |  |         | 1.4  |  |  |          | 3.1   | 

F-22



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)







|    |                                                                                                                                                                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Of which revenues performed in France:
    256.7 million                                                                                                                                                                                              
|   
|(2) | The segment Not allocable corresponds to goodwill
    for
    2,376.9 million
    and to vessels for
    386.7 million
    that are meant to operate in different geographical regions and
    therefore cannot be allocated to a specific segment.
|   
|(3) | Unallocated assets mainly include cash and cash equivalents.
    Regarding the specificities of Technip business, cash is managed
    centrally.                                                                                                       
|   
|(4) | The backlog is defined as the difference between the total
    contractual sale prices of all contracts in force and the
    cumulated revenues recognized at that date on these contracts.                                                            
|   
|(5) | Assets under construction are not included in capital
    expenditures on intangible and tangible assets.                                                                                                                                              

|                                                                |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |       |     |               |  |         |       |  |  |         |      |  |  |         |       | 
|--------------------------------------------------------------- | ----------------------------- | ------------------- | ------- | ---- | ------ |  | ------- | ----------- |  |  | ------------ | --- |  | -------- | ----- | --- | ------------- |  | ------- | ----- |  |  | ------- | ---- |  |  | ------- | ----- | 
|                                                                |                               | Europe,             |         |      |        |  |         |             |  |  |              |     |  |          |      
|                                                                |                               | Russia,             |         |      |        |  |         |             |  |  |              |     |  |          |      
|                                                                |                               | Central Asia        |         |      |        |  |         |             |  |  |              |     |  |          |      
|Year ended December 31, 2004                                    |                               | (1)                 |         |      | Africa |  |         | Middle-East |  |  | Asia-Pacific |     |  | Americas |       |     | Not Allocable |  |         | Total | 
|                                                                |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |       |     |               |  |         |       | 
|                                                                |                               | In millions of Euro |        
|Revenues                                                        |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |       |     |               |  |         |       |  |  |         |      |  |  |         |      
|Sales to External Customers                                     |                               |                     | 1,278.9 |      |        |  | 1,285.1 |             |  |  | 1,268.6      |     |  |          | 378.9 |     |               |  | 929.4   |       |  |  |         |      |  |  | 5,140.9 |      
|Less Sales Attributable to Discontinued Operations              |                               |                     |        |      |        |  |        |             |  |  |             |     |  |          |      |     |               |  |        |       |  |  |         |      |  |  |        |      
|                                                                |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |       |     |               |  |         |       | 
|Revenues by Region                                              |                               |                     | 1,278.9 |      |        |  | 1,285.1 |             |  |  | 1,268.6      |     |  |          | 378.9 |     |               |  | 929.4   |       |  |  |        |      |  |  | 5,140.9 |      
|                                                                |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |       |     |               |  |         |       | 
|Income/(Loss) from Operations                                   |                               |                     | 84.5    |      |        |  | 79.3    |             |  |  | 17.9         |     |  |          | 38.8  |     |               |  | 13.1    |       |  |  |         |      |  |  | 233.6   |      
|                                                                |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |       |     |               |  |         |       | 
|Assets                                                          |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |       |     |               |  |         |       |  |  |         |      |  |  |         |      
|Segment Assets(2)                                               |                               |                     | 647.8   |      |        |  | 253.4   |             |  |  | 404.0        |     |  |          | 145.1 |     |               |  | 383.8   |       |  |  | 2,902.2 |      |  |  | 4,736.3 |      
|Investments in Associates Accounted for Using the Equity Method |                               |                     | 12.3    |      |        |  |        |             |  |  | 7.6          |     |  |          |      |     |               |  |        |       |  |  |        |      |  |  | 19.9    |      
|Unallocated Assets(3)                                           |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |       |     |               |  |         |       |  |  | 1,661.4 |      |  |  | 1,661.4 |      
|                                                                |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |       |     |               |  |         |       | 
|Total Assets                                                    |                               |                     | 660.1   |      |        |  | 253.4   |             |  |  | 411.6        |     |  |          | 145.1 |     |               |  | 383.8   |       |  |  | 4,563.6 |      |  |  | 6,417.6 |      
|                                                                |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |       |     |               |  |         |       | 
|Other Segment Information                                       |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |       |     |               |  |         |       |  |  |         |      |  |  |         |      
|Backlog(4)                                                      |                               |                     | 1,077.1 |      |        |  | 1,742.8 |             |  |  | 2,403.5      |     |  |          | 459.9 |     |               |  | 1,095.7 |       |  |  |         |      |  |  | 6,779.0 |      
|Capital Expenditures:(5)                                        |                               |                     |         |      |        |  |         |             |  |  |              |     |  |          |       |     |               |  |         |       |  |  |         |      |  |  |        |      
|                                                                | Property, Plant and Equipment |                     |         | 26.7 |        |  |         | 13.0        |  |  |              | 4.2 |  |          |       | 1.3 |               |  |         | 11.4  |  |  |         | 78.0 |  |  |         | 134.6 | 
|                                                                | Intangible Assets             |                     |         | 1.0  |        |  |         |            |  |  |              | 0.2 |  |          |       | 0.1 |               |  |         | 0.4   |  |  |         | 5.0  |  |  |         | 6.7   | 






|    |                                                                                                                                                                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Of which revenues performed in France:
    159.0 million.                                                                                                                                                                                             
|   
|(2) | The segment Not allocable corresponds to goodwill
    for
    2,394.9 million
    and to vessels for
    408.5 million
    that are meant to operate in different geographical regions and
    therefore cannot be allocated to a specific segment.
|   
|(3) | Unallocated assets mainly include cash and cash equivalents.
    Regarding the specificities of Technip business, cash is managed
    centrally.                                                                                                       
|   
|(4) | The backlog is defined as the difference between the total
    contractual sale prices of all contracts in force and the
    cumulated revenues recognized at that date on these contracts.                                                            
|   
|(5) | Assets under construction are not included in capital
    expenditures on intangible and tangible assets.                                                                                                                                              






| |                    
| | -------------------
| | (c) Major Customers





F-23



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)





Note 4  Income/(Loss) from Operations









| |                                              
| | ---------------------------------------------
| | (a) Financial Result on Contracts in Progress

Note 1 C. (n) Financial Result on
Contracts  







| |                                                                               
| | ------------------------------------------------------------------------------
| | (b) Expenses by Nature within Cost of Sales and in
    Administrative Expenses



|                        |                                                            |                     |  |          |      |  |  |          |  
|----------------------- | ---------------------------------------------------------- | ------------------- |  | -------- | ---- |  |  | -------- | -
|                        |                                                            | 2005                |  |          | 2004 | 
|                        |                                                            |                     |  |          |      | 
|                        |                                                            | In millions of Euro | 
|Cost of Sales by Nature |                                                            |                     |  |          |      |  |  |         
|                        |                                                            |                     |  |          |      | 
|                        | Total                                                      |                     |  | (4,818.0 | )    |  |  | (4,577.8 | )
|                        |                                                            |                     |  |          |      | 
|                        | Including Depreciation of Property, Plant and Equipment    |                     |  | (108.2   | )    |  |  | (92.8    | )
|                        | Including Amortization of Licenses, Patents and Trademarks |                     |  | (4.7     | )    |  |  | (2.7     | )
|                        | Including Amortization of Other Intangible Assets          |                     |  | (2.6     | )    |  |  | (2.6     | )
|                        | Including Employee Benefit Expenses                        |                     |  | (666.4   | )    |  |  | (629.2   | )



|                               |                                                         |             |  |        |      |  |  |        |  
|------------------------------ | ------------------------------------------------------- | ----------- |  | ------ | ---- |  |  | ------ | -
|                               |                                                         | 2005        |  |        | 2004 | 
|                               |                                                         |             |  |        |      | 
|                               |                                                         | In millions | 
|                               |                                                         | of Euro     | 
|Administrative Costs by Nature |                                                         |             |  |        |      |  |  |       
|                               |                                                         |             |  |        |      | 
|                               | Total                                                   |             |  | (224.2 | )    |  |  | (189.3 | )
|                               |                                                         |             |  |        |      | 
|                               | Including Depreciation of Property, Plant and Equipment |             |  | (11.2  | )    |  |  | (13.8  | )
|                               | Including Employee Benefit Expenses                     |             |  | (81.7  | )    |  |  | (76.1  | )
|                               | Including Stock Option Charge(1)                        |             |  | (5.4   | )    |  |  | (5.8   | )






|    |                                                                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The stock option charge amounted to
    5.8 million
    in 2004 and was classified as other operating expense. In order
    to be compliant with the 2005 accounts, the Group has restated
    this amount in 2004 in administrative costs.






| |                           
| | --------------------------
| | (c) Other Operating Income

|                              |  |             |      |  |      |  |      | 
|----------------------------- |  | ----------- | ---- |  | ---- |  | ---- | 
|                              |  | 2005        |      |  | 2004 | 
|                              |  |             |      |  |      | 
|                              |  | In millions |     
|                              |  | of Euro     |     
|Other Operating Income        |  |             |      |  |      |  |      | 
|Proceeds from Sales of Assets |  |             | 22.0 |  |      |  | 22.9 | 
|Reinsurance Income            |  |             | 6.4  |  |      |  |     | 
|Others                        |  |             | 4.2  |  |      |  | 3.1  | 
|                              |  |             |      |  |      | 
|                              |  |             | 32.6 |  |      |  | 26.0 | 
|                              |  |             |      |  |      | 

F-24



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)







| |                             
| | ----------------------------
| | (d) Other Operating Expenses

|                                  |  |             |       |   |      |  |       |  
|--------------------------------- |  | ----------- | ----- | - | ---- |  | ----- | -
|                                  |  | 2005        |       |   | 2004 | 
|                                  |  |             |       |   |      | 
|                                  |  | In millions |      
|                                  |  | of Euro     |      
|Other Operating Expenses          |  |             |       |   |      |  |       |  
|Net Book Value of Disposed Assets |  |             | (9.6  | ) |      |  | (15.2 | )
|Restructuring Costs(1)            |  |             | (0.9  | ) |      |  | (12.0 | )
|Reinsurance Costs                 |  |             | (5.8  | ) |      |  | (0.3  | )
|Fair Value Losses                 |  |             |      |   |      |  | (0.7  | )
|Others                            |  |             | (5.8  | ) |      |  | (8.7  | )
|                                  |  |             |       |   |      | 
|                                  |  |             | (22.1 | ) |      |  | (36.9 | )
|                                  |  |             |       |   |      | 






|    |                                                                           
|--- | --------------------------------------------------------------------------
|(1) | Corresponds in 2004 to the restructuring costs of a German
    subsidiary.






| |                              
| | -----------------------------
| | (e) Employee Benefit Expenses

|                                                  |  |             |         |  |      |  |       | 
|------------------------------------------------- |  | ----------- | ------- |  | ---- |  | ----- | 
|                                                  |  | 2005        |         |  | 2004 | 
|                                                  |  |             |         |  |      | 
|                                                  |  | In millions |        
|                                                  |  | of Euro     |        
|Wages and Salaries                                |  |             | 810.3   |  |      |  | 733.8 | 
|Social Security Costs                             |  |             | 167.4   |  |      |  | 145.0 | 
|Pension Costs  Defined Contribution Plans        |  |             | 6.5     |  |      |  | 5.5   | 
|Pension Costs  Defined Benefit Plans             |  |             | 14.1    |  |      |  | 18.5  | 
|Others                                            |  |             | 19.6    |  |      |  | 17.4  | 
|                                                  |  |             |         |  |      | 
|Employee Benefit Expenses excluding Stock Options |  |             | 1,017.9 |  |      |  | 920.2 | 
|Stock Options Granted to Directors and Employees  |  |             | 5.4     |  |      |  | 5.8   | 
|                                                  |  |             |         |  |      | 
|Employee Benefit Expenses                         |  |             | 1,023.3 |  |      |  | 926.0 | 
|                                                  |  |             |         |  |      | 






| |                                      
| | -------------------------------------
| | (f) Research and Development Expenses

 


F-25



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)





Note 5  Financial Income and Expenses


 







| |                     
| | --------------------
| | (a) Financial Income

|                                                        |  |             |      |  |      |  |      | 
|------------------------------------------------------- |  | ----------- | ---- |  | ---- |  | ---- | 
|                                                        |  | 2005        |      |  | 2004 | 
|                                                        |  |             |      |  |      | 
|                                                        |  | In millions |     
|                                                        |  | of Euro     |     
|Financial Income                                        |  |             |      |  |      |  |      | 
|Interest Income from Treasury Management(1)             |  |             | 14.3 |  |      |  | 9.4  | 
|Dividends from Non-Consolidated Investments             |  |             |     |  |      |  | 0.5  | 
|Financial Income related to Employee Benefits           |  |             | 3.8  |  |      |  | 3.5  | 
|Changes in Derivative Fair Value (excluding Hedging)(2) |  |             | 1.9  |  |      |  |     | 
|Others                                                  |  |             |     |  |      |  | 0.9  | 
|                                                        |  |             |      |  |      | 
|                                                        |  |             | 20.0 |  |      |  | 14.3 | 
|                                                        |  |             |      |  |      | 






|    |                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Mainly resulting from gains on disposals of marketable
    securities for
    12.8 million
    in 2005 and
    9.2 million
    in 2004.                    
|   
|(2) | Arising from the application of IAS 32 and IAS 39 as of
    January 1, 2005, related to foreign exchange hedging
    financial instruments used by the Group.






| |                       
| | ----------------------
| | (b) Financial Expenses

|                                                    |  |             |        |   |      |  |       |  
|--------------------------------------------------- |  | ----------- | ------ | - | ---- |  | ----- | -
|                                                    |  | 2005        |        |   | 2004 | 
|                                                    |  |             |        |   |      | 
|                                                    |  | In millions |       
|                                                    |  | of Euro     |       
|Financial Expenses                                  |  |             |        |   |      |  |       |  
|Convertible Bonds: Financial Charges(1)             |  |             | (38.0  | ) |      |  | (21.4 | )
|Convertible Bonds: Loss on Buy Out                  |  |             | (1.6   | ) |      |  | (4.9  | )
|Bond Interest Expense(2)                            |  |             | (30.1  | ) |      |  | (18.4 | )
|Fees Related to Credit Facilities                   |  |             | (1.4   | ) |      |  | (3.8  | )
|Financial Expenses related to Employee Benefits     |  |             | (9.2   | ) |      |  | (8.4  | )
|Interest Expenses on Bank Borrowings and Overdrafts |  |             | (12.4  | ) |      |  | (9.4  | )
|Net Foreign Currency Translation Losses             |  |             | (9.5   | ) |      |  | (6.5  | )
|Inefficient Part of Hedging Instruments             |  |             | (1.2   | ) |      |  |      |  
|Others                                              |  |             | (5.4   | ) |      |  | (7.9  | )
|                                                    |  |             |        |   |      | 
|                                                    |  |             | (108.8 | ) |      |  | (80.7 | )
|                                                    |  |             |        |   |      | 






|    |                                                                                                                                                                                                 
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Financial charges on convertible bonds OCEANE include
    16.6 million
    of additional non-cash charges related to IAS 32 and IAS 39 as
    of January 1, 2005.                              
|   
|(2) | The interest expenses on bond loan issued in May 2004 increased
    from
    18.4 million
    in 2004 to
    30.1 million
    in 2005, year-end for which interests are due for one full year.

F-26



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)





Note 6  Income Tax







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

    


|                                                                        |                    |                |       |       |      |  |       |       |  
|----------------------------------------------------------------------- | ------------------ | -------------- | ----- | ----- | ---- |  | ----- | ----- | -
|Consolidated Income Statement                                           |                    | 2005           |       |       | 2004 | 
|                                                                        |                    |                |       |       |      | 
|                                                                        |                    | In millions of |      
|                                                                        |                    | Euro           |      
|Current Income Tax                                                      |                    |                |       |       |      |  |       |      
|                                                                        | Income Tax Expense |                |       | (31.0 | )    |  |       | (22.3 | )
|Deferred Income Tax                                                     |                    |                | (12.5 | )     |      |  | (31.2 | )    
|                                                                        |                    |                |       |       |      | 
|                                                                        |                    |                | (43.5 | )     |      |  | (53.5 | )    
|                                                                        |                    |                |       |       |      | 
|Tax on Net Gains related to Investment Disposals                        |                    |                |      |       |      |  | (0.7  | )    
|                                                                        |                    |                |       |       |      | 
|Income Tax Expense as reported in the Consolidated Income
    Statement |                    |                | (43.5 | )     |      |  | (54.2 | )    
|                                                                        |                    |                |       |       |      | 

|                                                          |                                                                            |      |      |       |      |  |   |   | 
|--------------------------------------------------------- | -------------------------------------------------------------------------- | ---- | ---- | ----- | ---- |  | - | - | 
|Consolidated Statement of Changes in Equity               |                                                                            | 2005 |      |       | 2004 | 
|                                                          |                                                                            |      |      |       |      | 
|                                                          | Deferred Income Tax related to Items Booked Directly to
    Opening Equity |      |      | (11.9 | )    |  |   |  | 
|                                                          | Deferred Income Tax related to Items Booked to Equity
    during the Year  |      |      | 35.9  |      |  |   |  | 
|                                                          | Other Equity Operations                                                    |      |      |      |      |  |   |  | 
|                                                          |                                                                            |      |      |       |      | 
|Income Tax Expense as reported in the Consolidated Equity |                                                                            |      | 24.0 |       |      |  |  |  
|                                                          |                                                                            |      |      |       |      | 

F-27



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)







| |                              
| | -----------------------------
| | (b) Income Tax Reconciliation



|                                                                         |                                                                                |             |       |      |      |  |       |      |  
|------------------------------------------------------------------------ | ------------------------------------------------------------------------------ | ----------- | ----- | ---- | ---- |  | ----- | ---- | -
|Income Tax Reconciliation                                                |                                                                                | 2005        |       |      | 2004 | 
|                                                                         |                                                                                |             |       |      |      | 
|                                                                         |                                                                                | In millions |      
|                                                                         |                                                                                | of Euro     |      
|Net Income from Continuing Operations                                    |                                                                                |             | 100.0 |      |      |  | 114.2 |     
|Income/(Loss) from Discontinued Operations                               |                                                                                |             | (5.0  | )    |      |  |      |     
|Income Tax Expense on Continuing Operations                              |                                                                                |             | 43.5  |      |      |  | 54.2  |     
|                                                                         |                                                                                |             |       |      |      | 
|Income Before Tax                                                        |                                                                                |             | 138.5 |      |      |  | 168.4 |     
|                                                                         |                                                                                |             |       |      |      | 
|Adjustments on Income before Tax                                         |                                                                                |             |       |      |      |  |       |     
|                                                                         | Share of Income/(Loss) of Associates Accounted for Using the
    Equity Method |             |       | (1.3 | )    |  |       | (1.2 | )
|                                                                         | Stock Option Charge                                                            |             |       | 5.6  |      |  |       | 5.8  |  
|                                                                         | Charge related to Convertible Bond Split Accounting                            |             |       | 16.3 |      |  |       |     |  
|                                                                         |                                                                                |             |       |      |      | 
|Adjusted Income before Tax                                               |                                                                                |             | 159.1 |      |      |  | 173.0 |     
|                                                                         |                                                                                |             |       |      |      | 
|At Parent Company Statutory Income Tax Rate of 34,93% (2004:
    35,43%) |                                                                                |             | (55.6 | )    |      |  | (61.3 | )   
|                                                                         | Territoriality and Local Taxes                                                 |             |       | (2.3 | )    |  |       | 1.1  |  
|                                                                         | Other Non-Deductible Expenses                                                  |             |       | (3.0 | )    |  |       | (1.4 | )
|                                                                         | Allowance/Reversals of Taxes and Tax Losses                                    |             |       | 9.3  |      |  |       | 6.9  |  
|                                                                         | Dividends not Taxable in Parent Company                                        |             |       | (1.5 | )    |  |       | (2.7 | )
|                                                                         | Share of General Fees on Dividends                                             |             |       | (1.1 | )    |  |       | (2.0 | )
|                                                                         | Seamec (Tonnage Scheme)                                                        |             |       | 1.1  |      |  |       | 0.5  |  
|                                                                         | Difference between Parent Company and Foreign Income Tax Rates                 |             |       | 5.1  |      |  |       | 1.1  |  
|                                                                         | Tax Savings/(Expenses) due to Tax Integration                                  |             |       | 2.4  |      |  |       | 1.1  |  
|                                                                         | Convertible Bond Redemption Premium                                            |             |       | (4.7 | )    |  |       |     |  
|                                                                         | Others                                                                         |             |       | 6.8  |      |  |       | 2.5  |  
|                                                                         |                                                                                |             |       |      |      | 
|At the Effective Income Tax Rate of 31,41% (2004: 32,19%)                |                                                                                |             | (43.5 | )    |      |  | (54.2 | )   
|                                                                         |                                                                                |             |       |      |      | 
|Income Tax Expense as reported in the Consolidated Income
    Statement  |                                                                                |             | (43.5 | )    |      |  | (54.2 | )   
|                                                                         |                                                                                |             |       |      |      | 

F-28



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)







| |                        
| | -----------------------
| | (c) Deferred Income Tax

Note 1 C. (m) Deferred
Income Tax


|                                               |                                                                 |               |       |       |      |  |       |       |  
|---------------------------------------------- | --------------------------------------------------------------- | ------------- | ----- | ----- | ---- |  | ----- | ----- | -
|                                               |                                                                 | Consolidated  |      
|                                               |                                                                 | balance sheet |      
|                                               |                                                                 |               |      
|Deferred Income Tax                            |                                                                 | 2005          |       |       | 2004 | 
|                                               |                                                                 |               |       |       |      | 
|                                               |                                                                 | In millions   |      
|                                               |                                                                 | of Euro       |      
|Deferred Income Tax Assets                     |                                                                 |               |       |       |      |  |       |      
|                                               | Employee Benefits                                               |               |       | 22.2  |      |  |       | 27.9  |  
|                                               | Fair Value Adjustments on Financial Instruments                 |               |       | 26.1  |      |  |       |      |  
|                                               | Deferred Gains and Losses on Foreign Exchange Contracts         |               |       | 1.5   |      |  |       | 2.5   |  
|                                               | Differences between Taxable and Accounting Depreciation         |               |       | 50.3  |      |  |       | 44.9  |  
|                                               | Margin Recognition on Construction Contracts                    |               |       | 25.1  |      |  |       | 25.7  |  
|                                               | Capital Leases                                                  |               |       | 8.1   |      |  |       | 7.8   |  
|                                               | Tax Paid in Y and Deductible in Y-1                             |               |       | 15.4  |      |  |       | 14.3  |  
|                                               | Changes in Tax Rates                                            |               |       | 0.4   |      |  |       |      |  
|                                               | Tax Loss Carry-Forwards                                         |               |       | 59.7  |      |  |       | 37.9  |  
|                                               | Convertible Bond Redemption Premium                             |               |       | 15.8  |      |  |       | 15.8  |  
|                                               | Others                                                          |               |       | 29.5  |      |  |       | 54.5  |  
|                                               |                                                                 |               |       |       |      | 
|                                               |                                                                 |               | 254.1 |       |      |  | 231.3 |      
|                                               |                                                                 |               |       |       |      | 
|Depreciation/Impairment of Deferred Tax Assets |                                                                 |               | (73.1 | )     |      |  | (65.5 | )    
|                                               |                                                                 |               |       |       |      | 
|                                               |                                                                 |               | 181.0 |       |      |  | 165.8 |      
|                                               |                                                                 |               |       |       |      | 
|Deferred Income Tax Liabilities                |                                                                 |               |       |       |      |  |       |      
|                                               | Fair Value Adjustments on Financial Instruments                 |               |       | 2.1   |      |  |       |      |  
|                                               | Deferred Gains and Losses on Foreign Exchange Contracts         |               |       | 0.9   |      |  |       | 2.0   |  
|                                               | Differences between Taxable and Accounting Depreciation(1)      |               |       | 117.7 |      |  |       | 103.7 |  
|                                               | Margin Recognition on Construction Contracts                    |               |       | 37.4  |      |  |       | 42.9  |  
|                                               | Capital Leases                                                  |               |       | 1.4   |      |  |       | 1.6   |  
|                                               | Tax Accruals                                                    |               |       | 4.1   |      |  |       | 2.2   |  
|                                               | Capitalized Acquisition Costs of Tangible and Intangible Assets |               |       | 0.2   |      |  |       |      |  
|                                               | Differences from Changes in Functional Currency                 |               |       | 3.3   |      |  |       | 3.7   |  
|                                               | Fair Value Adjustments on Acquisitions                          |               |       | 25.9  |      |  |       | 32.6  |  
|                                               | Others                                                          |               |       | (1.6  | )    |  |       | (1.0  | )
|                                               |                                                                 |               |       |       |      | 
|                                               |                                                                 |               | 191.4 |       |      |  | 187.7 |      
|                                               |                                                                 |               |       |       |      | 
|Net Deferred Income Tax Assets/(Liabilities)   |                                                                 |               | (10.4 | )     |      |  | (21.9 | )    
|                                               |                                                                 |               |       |       |      | 






|    |                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------
|(1) | Differences between taxable and accounting depreciation arise
    from vessel depreciation and particularly from the Deep Blue.

 


F-29



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


 


  







| |                                            
| | -------------------------------------------
| | (d) Tax Loss Carry-Forwards and Tax Credits

     





Note 7  Income/(Loss) from Discontinued
Operations







| |                            
| | ---------------------------
| | (a) Discontinued Operations






|                                                    |  |             |      |   |      |  |   | 
|--------------------------------------------------- |  | ----------- | ---- | - | ---- |  | - | 
|                                                    |  | 2005        |      |   | 2004 | 
|                                                    |  |             |      |   |      | 
|                                                    |  | In millions |     
|                                                    |  | of Euro     |     
|Gains/(Losses) on Consolidated Investment Disposals |  |             | (5.0 | ) |      |  |  | 
|                                                    |  |             |      |   |      | 
|Income/(Loss) from Discontinued Operations          |  |             | (5.0 | ) |      |  |  | 
|                                                    |  |             |      |   |      | 

|                                                      |                                         |             |      |   |      |  |   |   | 
|----------------------------------------------------- | --------------------------------------- | ----------- | ---- | - | ---- |  | - | - | 
|                                                      |                                         | 2005        |      |   | 2004 | 
|                                                      |                                         |             |      |   |      | 
|                                                      |                                         | In millions |     
|                                                      |                                         | of Euro     |     
|Revenues                                              |                                         |             | 1.2  |   |      |  |  |  
|Cost of Sales                                         |                                         |             | (5.3 | ) |      |  |  |  
|                                                      |                                         |             |      |   |      | 
|Gross Margin                                          |                                         |             | (4.1 | ) |      |  |  |  
|Other Operating Income and Expenses                   |                                         |             | (0.9 | ) |      |  |  |  
|                                                      |                                         |             |      |   |      | 
|Income/(Loss) from Operations                         |                                         |             | (5.0 | ) |      |  |  |  
|Financial Income                                      |                                         |             |     |   |      |  |  |  
|Financial Expenses                                    |                                         |             |     |   |      |  |  |  
|Result Recognized on the Re-Measurement to Fair Value |                                         |             |     |   |      |  |  |  
|                                                      |                                         |             |      |   |      | 
|Result before Tax from Discontinued Operations        |                                         |             | (5.0 | ) |      |  |  |  
|                                                      |                                         |             |      |   |      | 
|Income Tax Expense:                                   |                                         |             |     |   |      |  |  |  
|                                                      | related to Income/(Loss) before Tax     |             |      |  |      |  |   |  | 
|                                                      | related to Re-Measurement to Fair Value |             |      |  |      |  |   |  | 
|                                                      |                                         |             |      |   |      | 
|Income/(loss) from Discontinued Operations            |                                         |             | (5.0 | ) |      |  |  |  
|                                                      |                                         |             |      |   |      | 

F-30



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                       |                                                |         |  |       |      |  |  |   | 
|---------------------- | ---------------------------------------------- | ------- |  | ----- | ---- |  |  | - | 
|                       |                                                | 2005    |  |       | 2004 | 
|                       |                                                |         |  |       |      | 
|                       |                                                | In Euro | 
|Net Earnings per Share |                                                |         |  |       |      |  |  |  
|                       | Basic, for Discontinued Operations             |         |  | (0.05 | )    |  |  |  | 
|                       | Net Diluted, for Discontinued Operations       |         |  | (0.05 | )    |  |  |  | 
|                       | Net Fully Diluted, for Discontinued Operations |         |  | (0.04 | )    |  |  |  | 






| |                         
| | ------------------------
| | (b) Assets Held for Sale

 


|                                                                                |  |             |      |  |      |  |   | 
|------------------------------------------------------------------------------- |  | ----------- | ---- |  | ---- |  | - | 
|                                                                                |  | 2005        |      |  | 2004 | 
|                                                                                |  |             |      |  |      | 
|                                                                                |  | In millions |     
|                                                                                |  | of Euro     |     
|Assets                                                                          |  |             |      |  |      |  |   | 
|Property, Plant and Equipment                                                   |  |             | 24.0 |  |      |  |  | 
|Intangible Assets                                                               |  |             | 18.3 |  |      |  |  | 
|Other Debtors                                                                   |  |             | 0.6  |  |      |  |  | 
|Cash and Cash Equivalents                                                       |  |             |     |  |      |  |  | 
|                                                                                |  |             |      |  |      | 
|Assets of Disposal Group Classified as Held for Sale                            |  |             | 42.9 |  |      |  |  | 
|                                                                                |  |             |      |  |      | 
|Liabilities                                                                     |  |             |      |  |      |  |   | 
|Creditors                                                                       |  |             |     |  |      |  |  | 
|Interest-Bearing Liabilities                                                    |  |             |     |  |      |  |  | 
|                                                                                |  |             |      |  |      | 
|Liabilities Directly Associated with the Assets Classified as
    Held for Sale |  |             |     |  |      |  |  | 
|                                                                                |  |             |      |  |      | 
|Net Assets of Disposal Group Classified as Held for Sale                        |  |             | 42.9 |  |      |  |  | 
|                                                                                |  |             |      |  |      | 

F-31



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)





Note 8  Net Diluted Earnings per Share


Note 1 C. (p) Net Earnings per Share


|                                                                                      |                                             |                     |         |        |      |  |         |        |  
|------------------------------------------------------------------------------------- | ------------------------------------------- | ------------------- | ------- | ------ | ---- |  | ------- | ------ | -
|                                                                                      |                                             | 2005                |         |        | 2004 | 
|                                                                                      |                                             |                     |         |        |      | 
|                                                                                      |                                             | In millions of Euro |        
|Net Income Attributable to Shareholders of the Parent Company                         |                                             |                     | 93.3    |        |      |  | 111.8   |       
|Convertible Bonds: Split Accounting                                                   |                                             |                     | 16.6    |        |      |  |        |       
|Convertible Bonds: Redemption Premium after Tax                                       |                                             |                     | 13.3    |        |      |  | 7.4     |       
|Convertible Bonds: Financial Costs net of Tax                                         |                                             |                     | 5.3     |        |      |  | 6.5     |       
|                                                                                      |                                             |                     |         |        |      | 
|Net Income before Convertible Bond Financial Costs                                    |                                             |                     | 128.5   |        |      |  | 125.7   |       
|                                                                                      |                                             |                     |         |        |      | 
|In thousands                                                                          |                                             |                     |         |        |      |  |         |       
|Number of Shares:                                                                     |                                             |                     |         |        |      |  |         |       
|                                                                                      |  Issued Shares at period end               |                     |         | 98,874 |      |  |         | 96,443 |  
|                                                                                      |  Stock Options not Exercised at period end |                     |         | 3,650  |      |  |         | 5,587  |  
|                                                                                      |  Convertible Bonds                         |                     |         | 14,406 |      |  |         | 14,876 |  
|                                                                                      |  Treasury Shares                           |                     |         | (1,581 | )    |  |         | (1,361 | )
|                                                                                      |                                             |                     |         |        |      | 
|Denominator for Calculation of Net Fully Diluted Earnings per
    Share at period end |                                             |                     | 115,349 |        |      |  | 115,545 |       
|Denominator for Calculation of Net Diluted Earnings per Share at
    period end       |                                             |                     | 97,218  |        |      |  | 110,844 |       
|Denominator for Calculation of Net Earnings per Share                                 |                                             |                     | 95,687  |        |      |  | 94,454  |       
|                                                                                      |                                             |                     |         |        |      | 
|In Euro                                                                               |                                             |                     |         |        |      |  |         |       
|Net Fully Diluted Earnings per Share(1)                                               |                                             |                     | 1.11    |        |      |  | 1.09    |       
|Net Diluted Earnings per Share(2)                                                     |                                             |                     | 0.96    |        |      |  | 1.13    |       
|Net Earnings per Share(3)                                                             |                                             |                     | 0.98    |        |      |  | 1.18    |       
|                                                                                      |                                             |                     |         |        |      | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The net fully diluted earnings per share systematically comprise
    the impact of all equity instruments and compound financial
    instruments. The number of shares on a fully diluted basis
    includes the shares that would result from the convertible bond
    conversion to newly issued shares and from the exercise of stock
    options, but excludes the treasury shares. The number of shares
    on a fully diluted basis for 2004 has been adjusted to take into
    account the 4-for-1 share split which occurred on May 13,
    2005.
|   
|(2) | The net diluted earnings per share take into account the
    possible dilutive effects that may be generated by equity
    instruments (stock options) and compound financial instruments
    (convertible bonds OCEANE). During the period, the Group has not
    issued other financial instrument that may have any diluted
    effect on the net earnings per share.                                                                                                                                                                                 
|   
|(3) | The net earnings per share are calculated based on the average
    number of ordinary shares outstanding during the period, less
    the treasury shares.                                                                                                                                                                                                                                                                                                                                                                                                



Note 34  Subsequent Events


Note 7  Income/(Loss) from Discontinued
Operations


F-32



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)





Note 9  Dividends Paid and Proposed


   





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


 





Note 11  Property, Plant and Equipment








|                              |  |                     |      |   |           |  |       |               |  |          |           |   |  |              |        |   |              |  |       |        |  |  |       |  |  |  |       |   |  |  |         |  
|----------------------------- |  | ------------------- | ---- | - | --------- |  | ----- | ------------- |  | -------- | --------- | - |  | ------------ | ------ | - | ------------ |  | ----- | ------ |  |  | ----- |  |  |  | ----- | - |  |  | ------- | -
|                              |  |                     |      |   |           |  |       |               |  | Office   |           |   |  |              |        |   |             
|                              |  |                     |      |   |           |  |       |               |  | Fixtures |           |   |  |              |        |   |             
|                              |  |                     |      |   |           |  |       | Machinery and |  |          | and       |   |  | Assets under |        |   |              |  |      
|                              |  | Land                |      |   | Buildings |  |       | Vessels       |  |          | Equipment |   |  | Furniture    |        |   | Construction |  |       | Others |  |  | Total | 
|                              |  |                     |      |   |           |  |       |               |  |          |           |   |  |              |        |   |              |  |       |        |  |  |       | 
|                              |  | In millions of Euro |     
|As of January 1, 2004         |  |                     |      |   |           |  |       |               |  |          |           |   |  |              |        |   |              |  |       |        |  |  |       |  |  |  |       |   |  |  |         |  
|Cost                          |  |                     | 14.0 |   |           |  | 156.4 |               |  |          | 639.5     |   |  |              | 438.3  |   |              |  | 109.8 |        |  |  | 29.4  |  |  |  | 45.8  |   |  |  | 1,433.2 |  
|Accumulated Amortization      |  |                     |     |   |           |  | (72.7 | )             |  |          | (238.6    | ) |  |              | (276.0 | ) |              |  | (78.2 | )      |  |  |      |  |  |  | (26.9 | ) |  |  | (692.4  | )
|Accumulated Impairment Losses |  |                     |     |   |           |  |      |               |  |          |          |   |  |              |       |   |              |  |      |        |  |  |      |  |  |  |      |   |  |  |        |  
|                              |  |                     |      |   |           |  |       |               |  |          |           |   |  |              |        |   |              |  |       |        |  |  |       | 
|Net Book Value                |  |                     | 14.0 |   |           |  | 83.7  |               |  |          | 400.9     |   |  |              | 162.3  |   |              |  | 31.6  |        |  |  | 29.4  |  |  |  | 18.9  |   |  |  | 740.8   |  
|                              |  |                     |      |   |           |  |       |               |  |          |           |   |  |              |        |   |              |  |       |        |  |  |       | 
|As of December 31, 2004       |  |                     |      |   |           |  |       |               |  |          |           |   |  |              |        |   |              |  |       |        |  |  |       |  |  |  |       |   |  |  |         |  
|Cost                          |  |                     | 14.0 |   |           |  | 136.3 |               |  |          | 695.1     |   |  |              | 432.4  |   |              |  | 104.2 |        |  |  | 15.6  |  |  |  | 73.6  |   |  |  | 1,471.2 |  
|Accumulated Amortization      |  |                     | (1.0 | ) |           |  | (65.2 | )             |  |          | (286.6    | ) |  |              | (263.0 | ) |              |  | (81.8 | )      |  |  |      |  |  |  | (37.1 | ) |  |  | (734.7  | )
|Accumulated Impairment Losses |  |                     |     |   |           |  |      |               |  |          |          |   |  |              |       |   |              |  |      |        |  |  |      |  |  |  |      |   |  |  |        |  
|                              |  |                     |      |   |           |  |       |               |  |          |           |   |  |              |        |   |              |  |       |        |  |  |       | 
|Net Book Value                |  |                     | 13.0 |   |           |  | 71.1  |               |  |          | 408.5     |   |  |              | 169.4  |   |              |  | 22.4  |        |  |  | 15.6  |  |  |  | 36.5  |   |  |  | 736.5   |  
|                              |  |                     |      |   |           |  |       |               |  |          |           |   |  |              |        |   |              |  |       |        |  |  |       | 
|As of December 31, 2005       |  |                     |      |   |           |  |       |               |  |          |           |   |  |              |        |   |              |  |       |        |  |  |       |  |  |  |       |   |  |  |         |  
|Cost                          |  |                     | 10.6 |   |           |  | 118.7 |               |  |          | 715.3     |   |  |              | 530.0  |   |              |  | 122.9 |        |  |  | 15.3  |  |  |  | 79.6  |   |  |  | 1,592.4 |  
|Accumulated Amortization      |  |                     | (1.1 | ) |           |  | (57.8 | )             |  |          | (328.6    | ) |  |              | (295.6 | ) |              |  | (93.9 | )      |  |  |      |  |  |  | (44.1 | ) |  |  | (821.1  | )
|Accumulated Impairment Losses |  |                     |     |   |           |  |      |               |  |          |          |   |  |              |       |   |              |  |      |        |  |  |      |  |  |  |      |   |  |  |        |  
|                              |  |                     |      |   |           |  |       |               |  |          |           |   |  |              |        |   |              |  |       |        |  |  |       | 
|Net Book Value                |  |                     | 9.5  |   |           |  | 60.9  |               |  |          | 386.7     |   |  |              | 234.4  |   |              |  | 29.0  |        |  |  | 15.3  |  |  |  | 35.5  |   |  |  | 771.3   |  
|                              |  |                     |      |   |           |  |       |               |  |          |           |   |  |              |        |   |              |  |       |        |  |  |       | 

F-33



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                                                                  |  |                     |      |   |           |  |       |               |  |          |           |   |  |              |       |   |              |  |       |        |  |  |       |   |  |  |       |   |  |  |        |  
|--------------------------------------------------------------------------------- |  | ------------------- | ---- | - | --------- |  | ----- | ------------- |  | -------- | --------- | - |  | ------------ | ----- | - | ------------ |  | ----- | ------ |  |  | ----- | - |  |  | ----- | - |  |  | ------ | -
|                                                                                  |  |                     |      |   |           |  |       |               |  | Office   |           |   |  |              |       |   |             
|                                                                                  |  |                     |      |   |           |  |       |               |  | Fixtures |           |   |  |              |       |   |             
|                                                                                  |  |                     |      |   |           |  |       | Machinery and |  |          | and       |   |  | Assets under |       |   |              |  |      
|                                                                                  |  | Land                |      |   | Buildings |  |       | Vessels       |  |          | Equipment |   |  | Furniture    |       |   | Construction |  |       | Others |  |  | Total |  
|                                                                                  |  |                     |      |   |           |  |       |               |  |          |           |   |  |              |       |   |              |  |       |        |  |  |       |  
|                                                                                  |  | In millions of Euro |     
|Value as of January 1, 2004, Net of Accumulated
    Amortization and Impairment   |  |                     | 14.0 |   |           |  | 83.7  |               |  |          | 400.9     |   |  |              | 162.3 |   |              |  | 31.6  |        |  |  | 29.4  |   |  |  | 18.9  |   |  |  | 740.8  |  
|Additions  Acquisitions  Internal
    Developments                              |  |                     |     |   |           |  | 3.1   |               |  |          | 62.0      |   |  |              | 33.5  |   |              |  | 8.4   |        |  |  | 12.0  |   |  |  | (0.4  | ) |  |  | 118.6  |  
|Additions  Business Combinations                                                 |  |                     |     |   |           |  |      |               |  |          |          |   |  |              |      |   |              |  |      |        |  |  |      |   |  |  |      |   |  |  |       |  
|Disposals                                                                         |  |                     |     |   |           |  | (0.7  | )             |  |          | (0.4      | ) |  |              | (7.9  | ) |              |  | (0.5  | )      |  |  |      |   |  |  | (1.0  | ) |  |  | (10.5  | )
|Disposals of Subsidiaries                                                         |  |                     |     |   |           |  |      |               |  |          |          |   |  |              |      |   |              |  |      |        |  |  |      |   |  |  |      |   |  |  |       |  
|Depreciation Expense for the Year                                                 |  |                     |     |   |           |  | (9.9  | )             |  |          | (51.1     | ) |  |              | (32.7 | ) |              |  | (17.7 | )      |  |  |      |   |  |  | (6.3  | ) |  |  | (117.7 | )
|Impairment Losses                                                                 |  |                     |     |   |           |  |      |               |  |          |          |   |  |              |      |   |              |  |      |        |  |  |      |   |  |  |      |   |  |  |       |  
|Net Foreign Exchange Differences                                                  |  |                     | (0.4 | ) |           |  | (1.5  | )             |  |          | (4.5      | ) |  |              | (1.8  | ) |              |  | (0.7  | )      |  |  | (1.0  | ) |  |  | (0.9  | ) |  |  | (10.8  | )
|Others                                                                            |  |                     | (0.6 | ) |           |  | (3.6  | )             |  |          | 1.6       |   |  |              | 16.0  |   |              |  | 1.3   |        |  |  | (24.8 | ) |  |  | 26.2  |   |  |  | 16.1   |  
|                                                                                  |  |                     |      |   |           |  |       |               |  |          |           |   |  |              |       |   |              |  |       |        |  |  |       |  
|Value as of December 31, 2004, Net of Accumulated
    Amortization and Impairment |  |                     | 13.0 |   |           |  | 71.1  |               |  |          | 408.5     |   |  |              | 169.4 |   |              |  | 22.4  |        |  |  | 15.6  |   |  |  | 36.5  |   |  |  | 736.5  |  
|                                                                                  |  |                     |      |   |           |  |       |               |  |          |           |   |  |              |       |   |              |  |       |        |  |  |       |  
|Additions  Acquisitions  Internal
    Developments                              |  |                     |     |   |           |  | 3.2   |               |  |          | 31.7      |   |  |              | 88.4  |   |              |  | 20.7  |        |  |  | 11.7  |   |  |  | 11.3  |   |  |  | 167.0  |  
|Additions  Business Combinations                                                 |  |                     |     |   |           |  |      |               |  |          |          |   |  |              | 0.1   |   |              |  | 0.2   |        |  |  |      |   |  |  | 0.1   |   |  |  | 0.4    |  
|Disposals                                                                         |  |                     |     |   |           |  | (0.3  | )             |  |          | (14.6     | ) |  |              | (0.1  | ) |              |  | (0.6  | )      |  |  |      |   |  |  | 3.7   |   |  |  | (11.9  | )
|Disposals of Subsidiaries                                                         |  |                     | (0.1 | ) |           |  | (0.3  | )             |  |          |          |   |  |              | (0.1  | ) |              |  | (0.2  | )      |  |  |      |   |  |  |      |   |  |  | (0.7   | )
|Depreciation Expense for the Year                                                 |  |                     |     |   |           |  | (6.2  | )             |  |          | (45.7     | ) |  |              | (45.6 | ) |              |  | (17.0 | )      |  |  |      |   |  |  | (11.7 | ) |  |  | (126.2 | )
|Impairment Losses                                                                 |  |                     |     |   |           |  |      |               |  |          |          |   |  |              |      |   |              |  |      |        |  |  |      |   |  |  |      |   |  |  |       |  
|Net Foreign Exchange Differences                                                  |  |                     | 1.2  |   |           |  | 3.6   |               |  |          | 12.0      |   |  |              | 13.3  |   |              |  | 1.5   |        |  |  | 1.8   |   |  |  | 1.9   |   |  |  | 35.3   |  
|Attributable to Discontinued Operations/Assets Held for Sale                      |  |                     | (4.7 | ) |           |  | (10.1 | )             |  |          |          |   |  |              | (7.3  | ) |              |  |      |        |  |  |      |   |  |  | (0.2  | ) |  |  | (22.3  | )
|Others                                                                            |  |                     | 0.1  |   |           |  | (0.1  | )             |  |          | (5.2      | ) |  |              | 16.3  |   |              |  | 2.0   |        |  |  | (13.8 | ) |  |  | (6.1  | ) |  |  | (6.8   | )
|                                                                                  |  |                     |      |   |           |  |       |               |  |          |           |   |  |              |       |   |              |  |       |        |  |  |       |  
|Value as of December 31, 2005, Net of Accumulated
    Amortization and Impairment |  |                     | 9.5  |   |           |  | 60.9  |               |  |          | 386.7     |   |  |              | 234.4 |   |              |  | 29.0  |        |  |  | 15.3  |   |  |  | 35.5  |   |  |  | 771.3  |  
|                                                                                  |  |                     |      |   |           |  |       |               |  |          |           |   |  |              |       |   |              |  |       |        |  |  |       |  



F-34



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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)





Note 12  Intangible Assets




|                              |  |                     |         |           |            |  |       |          |        |  |       |   |  |       |       |   |  |  |         |  
|----------------------------- |  | ------------------- | ------- | --------- | ---------- |  | ----- | -------- | ------ |  | ----- | - |  | ----- | ----- | - |  |  | ------- | -
|                              |  |                     |         | Licenses/ |            |  |       |          |        |  |      
|                              |  |                     |         | Patents/  |            |  |       |          | Others |  |       |  
|                              |  | Goodwill            |         |           | Trademarks |  |       | Software |        |  | (1)   |   |  | Total |      
|                              |  |                     |         |           |            |  |       |          |        |  |       |   |  |       |      
|                              |  | In millions of Euro |        
|As of January 1, 2004         |  |                     |         |           |            |  |       |          |        |  |       |   |  |       |       |   |  |  |         |  
|Cost                          |  |                     | 2,400.1 |           |            |  | 93.1  |          |        |  | 26.2  |   |  |       | 12.5  |   |  |  | 2,531.9 |  
|Accumulated Amortization      |  |                     |        |           |            |  | (21.5 | )        |        |  | (11.6 | ) |  |       | (11.1 | ) |  |  | (44.2   | )
|Accumulated Impairment Losses |  |                     |        |           |            |  |      |          |        |  |      |   |  |       |      |   |  |  |        |  
|                              |  |                     |         |           |            |  |       |          |        |  |       |   |  |       |      
|Net Book Value                |  |                     | 2,400.1 |           |            |  | 71.6  |          |        |  | 14.6  |   |  |       | 1.4   |   |  |  | 2,487.7 |  
|                              |  |                     |         |           |            |  |       |          |        |  |       |   |  |       |      
|As of December 31, 2004       |  |                     |         |           |            |  |       |          |        |  |       |   |  |       |       |   |  |  |         |  
|Cost                          |  |                     | 2,394.9 |           |            |  | 92.6  |          |        |  | 48.6  |   |  |       | 11.4  |   |  |  | 2,547.5 |  
|Accumulated Amortization      |  |                     |        |           |            |  | (31.0 | )        |        |  | (33.7 | ) |  |       | (10.1 | ) |  |  | (74.8   | )
|Accumulated Impairment Losses |  |                     |        |           |            |  |      |          |        |  |      |   |  |       |      |   |  |  |        |  
|                              |  |                     |         |           |            |  |       |          |        |  |       |   |  |       |      
|Net Book Value                |  |                     | 2,394.9 |           |            |  | 61.6  |          |        |  | 14.9  |   |  |       | 1.3   |   |  |  | 2,472.7 |  
|                              |  |                     |         |           |            |  |       |          |        |  |       |   |  |       |      
|As of December 31, 2005       |  |                     |         |           |            |  |       |          |        |  |       |   |  |       |       |   |  |  |         |  
|Cost                          |  |                     | 2,376.9 |           |            |  | 95.0  |          |        |  | 51.9  |   |  |       | 18.1  |   |  |  | 2,541.9 |  
|Accumulated Amortization      |  |                     |        |           |            |  | (38.6 | )        |        |  | (42.1 | ) |  |       | (9.3  | ) |  |  | (90.0   | )
|Accumulated Impairment Losses |  |                     |        |           |            |  |      |          |        |  |      |   |  |       |      |   |  |  |        |  
|                              |  |                     |         |           |            |  |       |          |        |  |       |   |  |       |      
|Net Book Value                |  |                     | 2,376.9 |           |            |  | 56.4  |          |        |  | 9.8   |   |  |       | 8.8   |   |  |  | 2,451.9 |  
|                              |  |                     |         |           |            |  |       |          |        |  |       |   |  |       |      






|    |                                     
|--- | ------------------------------------
|(1) | Including assets under construction.

F-35



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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)







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



|                                                                                  |  |                     |         |           |            |  |      |          |        |  |      |   |  |       |      |   |  |  |         |  
|--------------------------------------------------------------------------------- |  | ------------------- | ------- | --------- | ---------- |  | ---- | -------- | ------ |  | ---- | - |  | ----- | ---- | - |  |  | ------- | -
|                                                                                  |  |                     |         | Licenses/ |            |  |      |          |        |  |     
|                                                                                  |  |                     |         | Patents/  |            |  |      |          | Others |  |      |  
|                                                                                  |  | Goodwill            |         |           | Trademarks |  |      | Software |        |  | (3)  |   |  | Total |     
|                                                                                  |  |                     |         |           |            |  |      |          |        |  |      |   |  |       |     
|                                                                                  |  | In millions of Euro |        
|Value as of January 1, 2004, Net of Accumulated
    Amortization and Impairment   |  |                     | 2,400.1 |           |            |  | 71.6 |          |        |  | 14.6 |   |  |       | 1.4  |   |  |  | 2,487.7 |  
|                                                                                  |  |                     |        |           |            |  |     |          |        |  |     |   |  |       |     |   |  |  |        |  
|Additions  Acquisitions  Internal
    Developments                              |  |                     |        |           |            |  |     |          |        |  | 7.0  |   |  |       | 0.3  |   |  |  | 7.3     |  
|Additions  Business Combinations                                                 |  |                     |        |           |            |  |     |          |        |  |     |   |  |       |     |   |  |  |        |  
|Disposals                                                                         |  |                     |        |           |            |  |     |          |        |  |     |   |  |       |     |   |  |  |        |  
|Disposals of Subsidiaries                                                         |  |                     |        |           |            |  |     |          |        |  |     |   |  |       |     |   |  |  |        |  
|Attributable to Discontinued Operations/Assets Held for Sale                      |  |                     |        |           |            |  |     |          |        |  |     |   |  |       |     |   |  |  |        |  
|Amortization Charge for the Year                                                  |  |                     |        |           |            |  | (8.3 | )        |        |  | (9.1 | ) |  |       | (0.3 | ) |  |  | (17.7   | )
|Impairment Losses                                                                 |  |                     |        |           |            |  |     |          |        |  |     |   |  |       |     |   |  |  |        |  
|Net Foreign Exchange Differences                                                  |  |                     |        |           |            |  | (1.7 | )        |        |  | (0.1 | ) |  |       | 0.2  |   |  |  | (1.6    | )
|Others(1)                                                                         |  |                     | (5.2    | )         |            |  |     |          |        |  | 2.5  |   |  |       | (0.3 | ) |  |  | (3.0    | )
|                                                                                  |  |                     |         |           |            |  |      |          |        |  |      |   |  |       |     
|Value as of December 31, 2004, Net of Accumulated
    Amortization and Impairment |  |                     | 2,394.9 |           |            |  | 61.6 |          |        |  | 14.9 |   |  |       | 1.3  |   |  |  | 2,472.7 |  
|                                                                                  |  |                     |         |           |            |  |      |          |        |  |      |   |  |       |     
|Additions  Acquisitions  Internal
    Developments                              |  |                     |        |           |            |  |     |          |        |  | 2.5  |   |  |       | 0.6  |   |  |  | 3.1     |  
|Additions  Business Combinations                                                 |  |                     |        |           |            |  |     |          |        |  |     |   |  |       |     |   |  |  |        |  
|Disposals                                                                         |  |                     |        |           |            |  |     |          |        |  |     |   |  |       |     |   |  |  |        |  
|Disposals of Subsidiaries                                                         |  |                     |        |           |            |  |     |          |        |  |     |   |  |       |     |   |  |  |        |  
|Attributable to Discontinued Operations/Assets Held for Sale                      |  |                     | (18.3   | )         |            |  |     |          |        |  |     |   |  |       |     |   |  |  | (18.3   | )
|Amortization Charge for the Year                                                  |  |                     |        |           |            |  | (8.3 | )        |        |  | (7.9 | ) |  |       | (0.9 | ) |  |  | (17.1   | )
|Impairment Losses                                                                 |  |                     |        |           |            |  |     |          |        |  |     |   |  |       |     |   |  |  |        |  
|Net Foreign Exchange Differences                                                  |  |                     | 0.3     |           |            |  | 3.1  |          |        |  | 0.3  |   |  |       | (0.3 | ) |  |  | 3.4     |  
|Others(2)                                                                         |  |                     |        |           |            |  |     |          |        |  |     |   |  |       | 8.1  |   |  |  | 8.1     |  
|                                                                                  |  |                     |         |           |            |  |      |          |        |  |      |   |  |       |     
|Value as of December 31, 2005, Net of Accumulated
    Amortization and Impairment |  |                     | 2,376.9 |           |            |  | 56.4 |          |        |  | 9.8  |   |  |       | 8.8  |   |  |  | 2,451.9 |  
|                                                                                  |  |                     |         |           |            |  |      |          |        |  |      |   |  |       |     






|    |                                                                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The amount mentioned on the line Others of goodwill
    corresponds to the adjustment on the Coflexip merger surplus on
    December 31, 2004.                                                                                            
|   
|(2) | The Group is currently in the process of setting up an
    integrated software. As of December 31, 2005, remaining
    related costs have been capitalized as assets under construction
    for
    7.0 million
    in the column Others.
|   
|(3) | Including assets under construction.                                                                                                                                                                                                        






| |             
| | ------------
| | (b) Goodwill

   Note 7  Income/(Loss) from
Discontinued Operations


Note 1 C. (f) Intangible Assets


F-36



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                           |  |                     |         |  |      |  |         | 
|-------------------------- |  | ------------------- | ------- |  | ---- |  | ------- | 
|                           |  | 2005                |         |  | 2004 | 
|                           |  |                     |         |  |      | 
|                           |  | In millions of Euro |        
|Goodwill  Net Value       |  |                     |         |  |      |  |         | 
|Surf(1)                    |  |                     | 1,948.1 |  |      |  | 1,948.1 | 
|Facilities(1)              |  |                     | 304.6   |  |      |  | 322.9   | 
|KTI/MDEU                   |  |                     | 115.6   |  |      |  | 115.6   | 
|Others                     |  |                     | 8.6     |  |      |  | 8.3     | 
|                           |  |                     |         |  |      | 
|Total Goodwill  Net Value |  |                     | 2,376.9 |  |      |  | 2,394.9 | 
|                           |  |                     |         |  |      | 






|    |                                                                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The goodwill relative to Coflexip resulting from both
    installments has been assigned  after allocation to
    identifiable items  to two business segments: SURF
    and Facilities (see Note 3  Segment
    Information).

Note 1 C. (f) Intangible
Assets






 Note 13  Investments in
Associates Accounted for using the Equity Method 





Note 13  Investments in Associates Accounted
for using the Equity Method






|                                           |  |                     |      |   |            |  |       |       |  |  |     | 
|------------------------------------------ |  | ------------------- | ---- | - | ---------- |  | ----- | ----- |  |  | --- | 
|                                           |  | Nargan              |      |   | TP KTI Spa |  |       | Total | 
|                                           |  |                     |      |   |            |  |       |       | 
|                                           |  | In millions of Euro |     
|As of December 31, 2005                    |  |                     |      |   |            |  |       |       |  |  |     | 
|Country                                    |  |                     | Iran |   |            |  | Italy |       |  |  |     | 
|Percentage of Interest                     |  |                     | 20   | % |            |  | 25    | %     |  |  |     | 
|Financial Data at 100% in millions of Euro |  |                     |      |   |            |  |       |       |  |  |     | 
|Total Assets                               |  |                     | 75.7 |   |            |  | 300.7 |       |  |  |     | 
|Total Liabilities (except Equity)          |  |                     | 64.6 |   |            |  | 297.4 |       |  |  |     | 
|                                           |  |                     |      |   |            |  |       |       | 
|Net Assets                                 |  |                     | 11.1 |   |            |  | 3.3   |       |  |  |     | 
|                                           |  |                     |      |   |            |  |       |       | 
|Revenues                                   |  |                     | 65.4 |   |            |  | 63.8  |       |  |  |     | 
|Net Income                                 |  |                     | 7.2  |   |            |  | 2.3   |       |  |  |     | 
|Carrying Amount of the Investment          |  |                     | 8.3  |   |            |  | 1.4   |       |  |  | 9.7 | 

F-37



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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                                           |  |                     |      |   |            |  |       |        |  |  |       |   |  |  |      | 
|------------------------------------------ |  | ------------------- | ---- | - | ---------- |  | ----- | ------ |  |  | ----- | - |  |  | ---- | 
|                                           |  | Nargan              |      |   | TP KTI Spa |  |       | TPL(1) |  |  | Total |  
|                                           |  |                     |      |   |            |  |       |        |  |  |       |  
|                                           |  | In millions of Euro |     
|As of December 31, 2004                    |  |                     |      |   |            |  |       |        |  |  |       |   |  |  |      | 
|Country                                    |  |                     | Iran |   |            |  | Italy |        |  |  | Italy |   |  |  |      | 
|Percentage of Interest                     |  |                     | 20   | % |            |  | 25    | %      |  |  | 100   | % |  |  |      | 
|Financial Data at 100% in millions of Euro |  |                     |      |   |            |  |       |        |  |  |       |   |  |  |      | 
|Total Assets                               |  |                     | 68.8 |   |            |  | 280.7 |        |  |  | 11.7  |   |  |  |      | 
|Total Liabilities (except Equity)          |  |                     | 59.9 |   |            |  | 277.3 |        |  |  | 1.1   |   |  |  |      | 
|                                           |  |                     |      |   |            |  |       |        |  |  |       |  
|Net Assets                                 |  |                     | 8.9  |   |            |  | 3.4   |        |  |  | 10.6  |   |  |  |      | 
|                                           |  |                     |      |   |            |  |       |        |  |  |       |  
|Revenues                                   |  |                     | 30.0 |   |            |  | 72.6  |        |  |  | 0.4   |   |  |  |      | 
|Net Income/(Loss)                          |  |                     | 3.7  |   |            |  | 1.7   |        |  |  | (0.3  | ) |  |  |      | 
|Carrying Amount of the Investment          |  |                     | 7.6  |   |            |  | 1.6   |        |  |  | 10.7  |   |  |  | 19.9 | 



|                                                                               |  |                     |       |   |      |  |      |  
|------------------------------------------------------------------------------ |  | ------------------- | ----- | - | ---- |  | ---- | -
|                                                                               |  | 2005                |       |   | 2004 | 
|                                                                               |  |                     |       |   |      | 
|                                                                               |  | In millions of Euro |      
|Carrying Amount of Investments as of January 1                                 |  |                     | 19.9  |   |      |  | 6.5  |  
|Additions(1)                                                                   |  |                     |      |   |      |  | 13.5 |  
|Disposals(1)                                                                   |  |                     | (10.7 | ) |      |  | (1.1 | )
|Share of Income/(Loss) of Associates Accounted for Using the
    Equity Method |  |                     | 1.3   |   |      |  | 1.2  |  
|Paid Dividends                                                                 |  |                     | (0.7  | ) |      |  |     |  
|Foreign Exchange Differences                                                   |  |                     | 0.3   |   |      |  | (0.2 | )
|Net Gains/(Losses) from Fair Value Adjustments                                 |  |                     |      |   |      |  |     |  
|Other Reclassifications                                                        |  |                     | (0.4  | ) |      |  |     |  
|                                                                               |  |                     |       |   |      | 
|Carrying Amount of Investments as of December 31                               |  |                     | 9.7   |   |      |  | 19.9 |  
|                                                                               |  |                     |       |   |      | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Additions in 2004 and disposals in 2005 are mainly connected
    with TPL. In 2004, TPL was accounted for using the equity method
    owing to the liquidation in progress of this affiliate. As the
    estimation of the time needed to an effective liquidation was
    underestimated in 2004, Technip had to reassess the accounting
    processing of this entity and to account for it under full
    consolidation in 2005.




Note 14  Other Financial Assets
(Non-Current)


Note 1 C. (g) Other Financial Assets
(Non-Current)




|                                                |  |                     |      |   |           |  |      |      |  |  |      |   |  |  |      |  
|----------------------------------------------- |  | ------------------- | ---- | - | --------- |  | ---- | ---- |  |  | ---- | - |  |  | ---- | -
|                                                |  | Fair Value          |      |   | Cost      | 
|                                                |  | Valuation           |      |   | Valuation | 
|                                                |  |                     |      |   |           | 
|                                                |  | 2005                |      |   | 2004      |  |      | 2005 |  |  | 2004 |  
|                                                |  |                     |      |   |           |  |      |      |  |  |      |  
|                                                |  | In millions of Euro |     
|Non-Consolidated Investments                    |  |                     | 4.8  |   |           |  | 4.3  |      |  |  | 4.8  |   |  |  | 4.3  |  
|Valuation Allowance                             |  |                     | (1.3 | ) |           |  | (2.4 | )    |  |  | (1.3 | ) |  |  | (2.4 | )
|                                                |  |                     |      |   |           |  |      |      |  |  |      |  
|Net Value                                       |  |                     | 3.5  |   |           |  | 1.9  |      |  |  | 3.5  |   |  |  | 1.9  |  
|Loans related to Investments                    |  |                     | 3.0  |   |           |  | 2.1  |      |  |  | 3.0  |   |  |  | 2.1  |  
|Valuation Allowance                             |  |                     | (2.8 | ) |           |  | (1.6 | )    |  |  | (2.8 | ) |  |  | (1.6 | )
|                                                |  |                     |      |   |           |  |      |      |  |  |      |  
|Net Value                                       |  |                     | 0.2  |   |           |  | 0.5  |      |  |  | 0.2  |   |  |  | 0.5  |  
|Security Deposits                               |  |                     | 6.6  |   |           |  | 0.7  |      |  |  | 6.6  |   |  |  | 0.7  |  
|Others                                          |  |                     | 1.3  |   |           |  | 0.3  |      |  |  | 1.3  |   |  |  | 0.3  |  
|                                                |  |                     |      |   |           |  |      |      |  |  |      |  
|Total Other Financial Assets (Non-Current), Net |  |                     | 11.6 |   |           |  | 3.4  |      |  |  | 11.6 |   |  |  | 3.4  |  
|                                                |  |                     |      |   |           |  |      |      |  |  |      |  

F-38



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)





Note 15  Available-for-Sale Financial
Assets







Note 16  Inventories


Note 1 C. (h)
Inventories




|                               |  |             |       |   |      |  |      |  
|------------------------------ |  | ----------- | ----- | - | ---- |  | ---- | -
|                               |  | 2005        |       |   | 2004 | 
|                               |  |             |       |   |      | 
|                               |  | In millions |      
|                               |  | of Euro     |      
|Raw Materials                  |  |             | 58.4  |   |      |  | 37.1 |  
|Work in Progress               |  |             | 25.2  |   |      |  | 46.1 |  
|Finished Goods and Merchandise |  |             | 25.3  |   |      |  | 13.6 |  
|Valuation Allowance            |  |             | (7.9  | ) |      |  | (9.6 | )
|                               |  |             |       |   |      | 
|Total Inventories, Net         |  |             | 101.0 |   |      |  | 87.2 |  
|                               |  |             |       |   |      | 




Note 17  Construction Contracts


Note 1 C.
(b) Construction Contracts.


|                                                             |  |                     |           |   |      |  |          |  
|------------------------------------------------------------ |  | ------------------- | --------- | - | ---- |  | -------- | -
|                                                             |  | 2005                |           |   | 2004 | 
|                                                             |  |                     |           |   |      | 
|                                                             |  | In millions of Euro |          
|Construction Contracts  Amounts Due from Clients            |  |                     | 585.0     |   |      |  | 400.6    |  
|Construction Contracts  Amounts Due to Clients              |  |                     | (35.5     | ) |      |  | (33.1    | )
|Advances Received                                            |  |                     | (1,636.9  | ) |      |  | (915.6   | )
|                                                             |  |                     |           |   |      | 
|Total Construction Contracts, Net                            |  |                     | (1,087.4  | ) |      |  | (548.1   | )
|                                                             |  |                     |           |   |      | 
|Costs and Margins Recognized at the Percentage of Completion |  |                     | 10,275.8  |   |      |  | 6,196.6  |  
|Progress Billings                                            |  |                     | (11,331.2 | ) |      |  | (6,711.9 | )
|Losses at Completion                                         |  |                     | (35.5     | ) |      |  | (33.1    | )
|Bid Costs                                                    |  |                     | 3.5       |   |      |  | 0.3      |  
|                                                             |  |                     |           |   |      | 
|Total Construction Contracts, Net                            |  |                     | (1,087.4  | ) |      |  | (548.1   | )
|                                                             |  |                     |           |   |      | 




Note 18  Trade Receivables








F-39



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                                |  |             |       |   |      |  |       |  
|------------------------------- |  | ----------- | ----- | - | ---- |  | ----- | -
|                                |  | 2005        |       |   | 2004 | 
|                                |  |             |       |   |      | 
|                                |  | In millions |      
|                                |  | of Euro     |      
|Receivables on Contracts        |  |             | 437.1 |   |      |  | 345.2 |  
|Doubtful Accounts               |  |             | 19.3  |   |      |  | 24.5  |  
|Allowance for Doubtful Accounts |  |             | (16.4 | ) |      |  | (20.7 | )
|                                |  |             |       |   |      | 
|Total Trade Receivables, Net    |  |             | 440.0 |   |      |  | 349.0 |  
|                                |  |             |       |   |      | 







Note 19  Other Current Receivables


|                                           |  |             |       |  |      |  |       | 
|------------------------------------------ |  | ----------- | ----- |  | ---- |  | ----- | 
|                                           |  | 2005        |       |  | 2004 | 
|                                           |  |             |       |  |      | 
|                                           |  | In millions |      
|                                           |  | of Euro     |      
|Value Added Tax Receivable                 |  |             | 52.0  |  |      |  | 42.2  | 
|Other Tax Receivables                      |  |             | 42.9  |  |      |  | 64.0  | 
|Advances to Non-Consolidated Subsidiaries  |  |             | 13.6  |  |      |  | 10.5  | 
|Receivables from Personnel                 |  |             | 3.0   |  |      |  | 1.7   | 
|Dividends to Be Received                   |  |             | 1.2   |  |      |  | 11.0  | 
|Prepaid Expenses                           |  |             | 67.6  |  |      |  | 81.2  | 
|Insurance Indemnities to Be Received       |  |             | 0.1   |  |      |  | 0.1   | 
|Joint Venture Associates Current Accounts |  |             | 7.9   |  |      |  | 31.4  | 
|Stock Option Exercise                      |  |             | 33.4  |  |      |  |      | 
|Receivables on Assets                      |  |             | 1.1   |  |      |  |      | 
|Others                                     |  |             | 60.8  |  |      |  | 219.2 | 
|                                           |  |             |       |  |      | 
|Total Other Receivables, Net               |  |             | 283.6 |  |      |  | 461.3 | 
|                                           |  |             |       |  |      | 






Note 20  Cash and Cash Equivalents


|                                         |  |                     |         |  |      |  |         | 
|---------------------------------------- |  | ------------------- | ------- |  | ---- |  | ------- | 
|Cash and Cash Equivalents                |  | 2005                |         |  | 2004 | 
|                                         |  |                     |         |  |      | 
|                                         |  | In millions of Euro |        
|Cash at Bank and in Hands                |  |                     | 1,566.3 |  |      |  | 694.6   | 
|Cash Equivalents  Marketable Securities |  |                     | 621.5   |  |      |  | 739.4   | 
|                                         |  |                     |         |  |      | 
|Total Cash and Cash Equivalents          |  |                     | 2,187.8 |  |      |  | 1,434.0 | 
|                                         |  |                     |         |  |      | 

|                                                           |  |  |         |  |  |  |         | 
|---------------------------------------------------------- |  |  | ------- |  |  |  | ------- | 
|Detailed Analysis of Cash and Cash Equivalents by Currency |  |  |         | 
|                                                           |  |  |         | 
|Euro                                                       |  |  | 1,053.8 |  |  |  | 793.0   | 
|U.S. Dollar                                                |  |  | 808.4   |  |  |  | 431.7   | 
|Pound Sterling                                             |  |  | 77.7    |  |  |  | 87.0    | 
|Norwegian Crown                                            |  |  | 17.4    |  |  |  | 19.1    | 
|Japanese Yen                                               |  |  | 104.0   |  |  |  | 5.4     | 
|Others                                                     |  |  | 126.5   |  |  |  | 97.8    | 
|                                                           |  |  |         |  |  | 
|Total Cash and Cash Equivalents                            |  |  | 2,187.8 |  |  |  | 1,434.0 | 
|                                                           |  |  |         |  |  | 

F-40



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                                                |  |             |       |  |      |  |       | 
|----------------------------------------------- |  | ----------- | ----- |  | ---- |  | ----- | 
|Cash Equivalents  Marketable Securities        |  | 2005        |       |  | 2004 | 
|                                                |  |             |       |  |      | 
|                                                |  | In millions |      
|                                                |  | of Euro     |      
|Historical Cost                                 |  |             | 621.5 |  |      |  | 739.4 | 
|Valuation Allowance                             |  |             |      |  |      |  |      | 
|                                                |  |             |       |  |      | 
|Marketable Securities Market Value at Year-end |  |             | 621.5 |  |      |  | 739.4 | 
|                                                |  |             |       |  |      | 

|                                           |  |  |       |  |  |  |       | 
|------------------------------------------ |  |  | ----- |  |  |  | ----- | 
|Detailed Analysis of Marketable Securities |  |  |       | 
|                                           |  |  |       | 
|Mutual Funds                               |  |  | 471.2 |  |  |  | 501.8 | 
|Certificates of Deposits                   |  |  | 50.4  |  |  |  | 103.4 | 
|Fixed Term Deposits                        |  |  | 86.0  |  |  |  | 67.3  | 
|Treasury Shares                            |  |  |      |  |  |  |      | 
|Others                                     |  |  | 13.9  |  |  |  | 66.9  | 
|                                           |  |  |       |  |  | 
|Total Marketable Securities                |  |  | 621.5 |  |  |  | 739.4 | 
|                                           |  |  |       |  |  | 






Note 21  Shareholders Equity







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




|                                                        |  |                  |            |              |              |  |      | 
|------------------------------------------------------- |  | ---------------- | ---------- | ------------ | ------------ |  | ---- | 
|Common Stock:                                           |  | Number of Shares |            |              |             
|Nominal Value of 3,05 until May 13, 2005, then 0,7625 |  | Outstanding      |            |              | Common Stock | 
|                                                        |  |                  |            |              |              | 
|                                                        |  |                  |            | (In millions |             
|                                                        |  |                  |            | of Euro)     |             
|Common Stock as of December 31, 2003                    |  |                  | 23,738,331 |              |              |  | 72.4 | 
|Employee Subscription(1)                                |  |                  | 331,780    |              |              |  | 1.0  | 
|Stock Option Exercised(2)                               |  |                  | 40,543     |              |              |  | 0.1  | 
|                                                        |  |                  |            |              |              | 
|Common Stock as of December 31, 2004                    |  |                  | 24,110,654 |              |              |  | 73.5 | 
|                                                        |  |                  |            |              |              | 
|Share Split 4-for-1(3)                                  |  |                  | 72,331,962 |              |              |  |     | 
|Stock Option Exercised(2)                               |  |                  | 2,465,664  |              |              |  | 1.9  | 
|Cancellation of Treasury Shares                         |  |                  | (34,108    | )            |              |  |     | 
|                                                        |  |                  |            |              |              | 
|Common Stock as of December 31, 2005                    |  |                  | 98,874,172 |              |              |  | 75.4 | 
|                                                        |  |                  |            |              |              | 






|    |                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Employee subscription: the shareholders authorized the terms of
    such capital increase at the Shareholders Meeting of
    July 11, 2003.   
|   
|(2) | These increases result from the exercise of stock options
    granted to employees as described in Note 21(g)
    Executive Stock Option Plans.
|   
|(3) | On May 13, 2005, Technips ordinary shares were split
    4-for-1 on the decision of the Combined Shareholders
    Meeting of April 29, 2005. 

F-41



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)







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

|                              |  |      |       |   |      |  |       |  
|----------------------------- |  | ---- | ----- | - | ---- |  | ----- | -
|                              |  | 2005 |       |   | 2004 | 
|                              |  |      |       |   |      | 
|Oppenheimer Funds Inc         |  |      | 5.9   | % |      |  | 6.0   | %
|IFP                           |  |      | 3.2   | % |      |  | 3.2   | %
|Lehman Brothers International |  |      | 4.7   | % |      |  |      |  
|Employees                     |  |      | 2.0   | % |      |  | 2.4   | %
|Treasury shares               |  |      | 1.6   | % |      |  | 1.4   | %
|Others                        |  |      | 82.6  | % |      |  | 87.0  | %
|                              |  |      |       |   |      | 
|Total                         |  |      | 100.0 | % |      |  | 100.0 | %
|                              |  |      |       |   |      | 






|    |                                                             
|--- | ------------------------------------------------------------
|(1) | Including 1,580,548 treasury shares as of December 31, 2005.






| |                    
| | -------------------
| | (c) Treasury Shares

 





|                                        |  |                  |           |              |                 |  |       |  
|--------------------------------------- |  | ---------------- | --------- | ------------ | --------------- |  | ----- | -
|Treasury Shares                         |  | Number of Shares |           |              | Treasury Shares | 
|                                        |  |                  |           |              |                 | 
|                                        |  |                  |           | (In millions |                
|                                        |  |                  |           | of Euro)     |                
|Treasury Shares as of December 31, 2003 |  |                  | 140,953   |              |                 |  | (9.7  | )
|                                        |  |                  |           |              |                 | 
|Increase                                |  |                  | 430,584   |              |                 |  | (44.0 | )
|Decrease due to Stock Options Exercised |  |                  | (231,295  | )            |                 |  | 21.3  |  
|                                        |  |                  |           |              |                 | 
|Treasury Shares as of December 31, 2004 |  |                  | 340,242   |              |                 |  | (32.4 | )
|                                        |  |                  |           |              |                 | 
|Increase due to Share Split 4-for-1(1)  |  |                  | 1,020,726 |              |                 |  |      |  
|Cancellation of Treasury Shares         |  |                  | (34,108   | )            |                 |  | 0.8   |  
|Increase                                |  |                  | 949,652   |              |                 |  | (41.8 | )
|Decrease due to Stock Options Exercised |  |                  | (695,964  | )            |                 |  | 21.0  |  
|                                        |  |                  |           |              |                 | 
|Treasury Shares as of December 31, 2005 |  |                  | 1,580,548 |              |                 |  | (52.4 | )
|                                        |  |                  |           |              |                 | 

F-42



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)







|    |                                                                   
|--- | ------------------------------------------------------------------
|(1) | On May 13, 2005, Technips ordinary shares were split
    4-for-1.






| |                        
| | -----------------------
| | (d) Fair Value Reserves

|                                                      |  |                     |      |  |         |  |        |         |  |  |       |  |  |  |        |  
|----------------------------------------------------- |  | ------------------- | ---- |  | ------- |  | ------ | ------- |  |  | ----- |  |  |  | ------ | -
|                                                      |  | Convertible         |      |  | Hedging |  |        | Stock   |  |  |      
|                                                      |  | Bond                |      |  | Reserve |  |        | Options |  |  | Total | 
|                                                      |  |                     |      |  |         |  |        |         |  |  |       | 
|                                                      |  | In millions of Euro |     
|As of January 1, 2004                                 |  |                     |     |  |         |  |       |         |  |  | 5.8   |  |  |  | 5.8    |  
|Stock Options                                         |  |                     |     |  |         |  |       |         |  |  | 5.8   |  |  |  | 5.8    |  
|                                                      |  |                     |      |  |         |  |        |         |  |  |       | 
|As of December 31, 2004                               |  |                     |     |  |         |  |       |         |  |  | 11.6  |  |  |  | 11.6   |  
|                                                      |  |                     |      |  |         |  |        |         |  |  |       | 
|IAS 32/39  Net Gains/(Losses) on Cash Flow Hedges(1) |  |                     |     |  |         |  | (100.3 | )       |  |  |      |  |  |  | (100.3 | )
|Tax Effect of Net Gains/(Losses) on Cash Flow Hedges  |  |                     |     |  |         |  | 24.0   |         |  |  |      |  |  |  | 24.0   |  
|Convertible Bonds  Equity Component(2)               |  |                     | 32.8 |  |         |  |       |         |  |  |      |  |  |  | 32.8   |  
|Others                                                |  |                     |     |  |         |  |       |         |  |  | 5.4   |  |  |  | 5.4    |  
|                                                      |  |                     |      |  |         |  |        |         |  |  |       | 
|As of December 31, 2005                               |  |                     | 32.8 |  |         |  | (76.3  | )       |  |  | 17.0  |  |  |  | (26.5  | )
|                                                      |  |                     |      |  |         |  |        |         |  |  |       | 






|    |                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Revaluation of derivatives under cash flow hedges
    ((75.3) million)
    and of cash accounts allocated to cash flow hedges
    ((25.0) million).           
|   
|(2) | Split accounting applied to convertible bonds in accordance with
    IAS 32 and IAS 39, into a separate debt component and a
    shareholders equity component.



| |                        
| | -----------------------
| | Convertible Bond OCEANE





| |                
| | ---------------
| | Hedging reserve








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









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









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



F-43



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)












| |   |                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | 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.
|
| | - | 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.   

F-44



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                                        |  |           |               |           |        |  |                   |        |  |           |              |   |  |        |              |  |       |  |               |  |  |  |           |  
|--------------------------------------- |  | --------- | ------------- | --------- | ------ |  | ----------------- | ------ |  | --------- | ------------ | - |  | ------ | ------------ |  | ----- |  | ------------- |  |  |  | --------- | -
|                                        |  |           |               | Plan 2002 |        |  |                   |        | 
|                                        |  |           |               |           |        |  |                   |        | 
|                                        |  | Plan 2000 |               |           |        |  | Remaining Portion |        |  | Plan 2005 |              |   | 
|TECHNIP PLANS                           |  | 2° Part   |               |           | Part A |  |                   | Part B |  |           | of Part B    |   |  | Part A |              |  |      
|Number of Stock Options                 |  | (1)       |               |           | (2)    |  |                   | (2)    |  |           | (3)          |   |  | (4)    |              |  | Total | 
|                                        |  |           |               |           |        |  |                   |        |  |           |              |   |  |        |              |  |       | 
|Options granted as of December 31, 1999 |  |           |              |           |        |  |                  |        |  |           |             |   |  |        |             |  |       |  |              |  |  |  |          |  
|                                        |  |           |               |           |        |  |                   |        |  |           |              |   |  |        |              |  |       | 
|Options granted (purchase)              |  |           | 139,576       |           |        |  |                  |        |  |           |             |   |  |        |             |  |       |  |              |  |  |  | 139,576   |  
|Options granted (subscription)          |  |           | 493,028       |           |        |  |                  |        |  |           |             |   |  |        |             |  |       |  |              |  |  |  | 493,028   |  
|                                        |  |           |               |           |        |  |                   |        |  |           |              |   |  |        |              |  |       | 
|Options granted as of December 31, 2000 |  |           | 632,604       |           |        |  |                  |        |  |           |             |   |  |        |             |  |       |  |              |  |  |  | 632,604   |  
|                                        |  |           |               |           |        |  |                   |        |  |           |              |   |  |        |              |  |       | 
|Options cancelled (subscription)        |  |           | (3,200        | )         |        |  |                  |        |  |           |             |   |  |        |             |  |       |  |              |  |  |  | (3,200    | )
|                                        |  |           |               |           |        |  |                   |        |  |           |              |   |  |        |              |  |       | 
|Options granted as of December 31, 2001 |  |           | 629,404       |           |        |  |                  |        |  |           |             |   |  |        |             |  |       |  |              |  |  |  | 629,404   |  
|                                        |  |           |               |           |        |  |                   |        |  |           |              |   |  |        |              |  |       | 
|Options cancelled (subscription)        |  |           | (13,950       | )         |        |  |                  |        |  |           |             |   |  |        |             |  |       |  |              |  |  |  | (13,950   | )
|Options granted (subscription)          |  |           |              |           |        |  | 234,080           |        |  |           | 462,920      |   |  |        |             |  |       |  |              |  |  |  | 697,000   |  
|                                        |  |           |               |           |        |  |                   |        |  |           |              |   |  |        |              |  |       | 
|Options granted as of December 31, 2002 |  |           | 615,454       |           |        |  | 234,080           |        |  |           | 462,920      |   |  |        |             |  |       |  |              |  |  |  | 1,312,454 |  
|                                        |  |           |               |           |        |  |                   |        |  |           |              |   |  |        |              |  |       | 
|Options cancelled (subscription)        |  |           | (27,200       | )         |        |  | (22,090           | )      |  |           | (4,400       | ) |  |        |             |  |       |  |              |  |  |  | (53,690   | )
|Options granted (subscription)          |  |           |              |           |        |  |                  |        |  |           |             |   |  |        | 5,200        |  |       |  |              |  |  |  | 5,200     |  
|                                        |  |           |               |           |        |  |                   |        |  |           |              |   |  |        |              |  |       | 
|Options granted as of December 31, 2003 |  |           | 588,254       |           |        |  | 211,990           |        |  |           | 458,520      |   |  |        | 5,200        |  |       |  |              |  |  |  | 1,263,964 |  
|                                        |  |           |               |           |        |  |                   |        |  |           |              |   |  |        |              |  |       | 
|Options exercised (subscription)        |  |           |              |           |        |  |                  |        |  |           | (900         | ) |  |        |             |  |       |  |              |  |  |  | (900      | )
|Options cancelled (subscription)        |  |           | (34,000       | )         |        |  | (10,380           | )      |  |           | (10,350      | ) |  |        |             |  |       |  |              |  |  |  | (54,730   | )
|                                        |  |           |               |           |        |  |                   |        |  |           |              |   |  |        |              |  |       | 
|Options granted as of December 31, 2004 |  |           | 554,254       |           |        |  | 201,610           |        |  |           | 447,270      |   |  |        | 5,200        |  |       |  |              |  |  |  | 1,208,334 |  
|                                        |  |           |               |           |        |  |                   |        |  |           |              |   |  |        |              |  |       | 
|Options granted (subscription)          |  |           |               |           |        |  |                   |        |  |           |              |   |  |        |              |  |       |  | 965,213       |  |  |  | 965,213   |  
|Options exercised (subscription)        |  |           | (234,274      | )         |        |  | (69,840           | )      |  |           | (186,070     | ) |  |        |              |  |       |  |               |  |  |  | (490,184  | )
|Options exercised (purchase)            |  |           | (139,576      | )         |        |  |                   |        |  |           |              |   |  |        |              |  |       |  |               |  |  |  | (139,576  | )
|Options cancelled (purchase)            |  |           |               |           |        |  |                   |        |  |           |              |   |  |        |              |  |       |  |               |  |  |  |          |  
|Options cancelled (subscription)        |  |           | (14,000       | )         |        |  | (10,780           | )      |  |           | (5,150       | ) |  |        |              |  |       |  |               |  |  |  | (29,930   | )
|                                        |  |           |               |           |        |  |                   |        |  |           |              |   |  |        |              |  |       | 
|Options granted as of December 31, 2005 |  |           | 166,404       |           |        |  | 120,990           |        |  |           | 256,050      |   |  |        | 5,200        |  |       |  | 965,213       |  |  |  | 1,513,857 |  
|                                        |  |           |               |           |        |  |                   |        |  |           |              |   |  |        |              |  |       | 
|Maturity Date                           |  |           | Dec. 14, 2008 |           |        |  | Dec. 9, 2008      |        |  |           | Dec. 9, 2008 |   |  |        | May 21, 2009 |  |       |  | Dec. 14, 2011 |  |  |  |           |  






|    |                                                                                       
|--- | --------------------------------------------------------------------------------------
|(1) | Options exercisable after 3 years from 12.14.2000                                     
|   
|(2) | Options exercisable after 3 years from 12.09.2002                                     
|   
|(3) | Options exercisable after 3 years from 05.21.2003                                     
|   
|(4) | Options exercisable after 4 years from 12.14.2005 and when
    meeting certain targets



F-45



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                                                     |  |          |         |   |          |  |         |         |  |  |         |   |  |       |         |   |  |  |          |  
|---------------------------------------------------- |  | -------- | ------- | - | -------- |  | ------- | ------- |  |  | ------- | - |  | ----- | ------- | - |  |  | -------- | -
|COFLEXIP PLANS                                       |  |          |         |   |          |  |         |         |  | 
|Number of Stock Options                              |  | Plan 9.2 |         |   | Plan 9.3 |  |         | Plan 10 |  |  | Plan 11 |   |  | Total |        
|                                                     |  |          |         |   |          |  |         |         |  |  |         |   |  |       |        
|Options granted in                                   |  |          | 1997    |   |          |  | 1998    |         |  |  | 1999    |   |  |       | 2001    |   |  |  |          |  
|Purchase options granted                             |  |          | -       |   |          |  |        |         |  |  |        |   |  |       | 34,415  |   |  |  | 34,415   |  
|Subscription options granted                         |  |          | 200,000 |   |          |  | 123,400 |         |  |  | 127,386 |   |  |       | 180,000 |   |  |  | 630,786  |  
|Options as of December 31, 2003 (cumulative figures) |  |          | 38,687  |   |          |  | 97,750  |         |  |  | 91,384  |   |  |       | 178,415 |   |  |  | 406,236  |  
|Options exercised (subscription)                     |  |          | (10,833 | ) |          |  | (8,050  | )       |  |  | (20,760 | ) |  |       |        |   |  |  | (39,643  | )
|Options cancelled (subscription)                     |  |          |        |   |          |  | (1,900  | )       |  |  | (1,334  | ) |  |       | (1,000  | ) |  |  | (4,234   | )
|                                                     |  |          |         |   |          |  |         |         |  |  |         |   |  |       |        
|Options granted as of December 31, 2004              |  |          | 27,854  |   |          |  | 87,800  |         |  |  | 69,290  |   |  |       | 177,415 |   |  |  | 362,359  |  
|                                                     |  |          |         |   |          |  |         |         |  |  |         |   |  |       |        
|Options exercised (subscription)                     |  |          | (12,497 | ) |          |  | (44,705 | )       |  |  | (44,245 | ) |  |       | (24,785 | ) |  |  | (126,232 | )
|Options exercised (purchase)                         |  |          |         |   |          |  |         |         |  |  |         |   |  |       | (34,415 | ) |  |  | (34,415  | )
|Options cancelled (subscription)                     |  |          |         |   |          |  | (2,000  | )       |  |  |         |   |  |       | (16,915 | ) |  |  | (18,915  | )
|                                                     |  |          |         |   |          |  |         |         |  |  |         |   |  |       |        
|Options granted as of December 31, 2005              |  |          | 15,357  |   |          |  | 41,095  |         |  |  | 25,045  |   |  |       | 101,300 |   |  |  | 182,797  |  
|                                                     |  |          |         |   |          |  |         |         |  |  |         |   |  |       |        
|of which purchase options granted                    |  |          |        |   |          |  |        |         |  |  |        |   |  |       |        |   |  |  |         |  
|                                                     |  |          |         |   |          |  |         |         |  |  |         |   |  |       |        

 








|                               |  |  |           |           |  |                   |              |         |           |           |              |   |        |  |              |   |  |  |               |  
|------------------------------ |  |  | --------- | --------- |  | ----------------- | ------------ | ------- | --------- | --------- | ------------ | - | ------ |  | ------------ | - |  |  | ------------- | -
|                               |  |  |           | Plan 2002 |  |                   |             
|                               |  |  |           |           |  |                   |             
|                               |  |  |           |           |  | Remaining Portion |              |         | Plan 2005 |          
|TECHNIP PLANS                  |  |  |           | Part A    |  |                   | Part B       |         |           | of Part B |              |   | Part A | 
|                               |  |  |           |           |  |                   |              |         |           |           |              |   |        | 
|                               |  |  |           |           |  |                   |              | In Euro |           |           |             
|Share Price at the Grant Date  |  |  |           |           |  |                   | 72.55        |         |           |           | 72.55        |   |        |  | 74.50        |   |  |  | 48.87         |  
|Exercise Price                 |  |  |           |           |  |                   | 71.95        |         |           |           | 71.95        |   |        |  | 73.98        |   |  |  | 48.19         |  
|Dividend Yield                 |  |  |           |           |  |                   | 2.6          | %       |           |           | 2.6          | % |        |  | 2.7          | % |  |  | 2.0           | %
|Turnover Rate                  |  |  |           |           |  |                   | 2.0          | %       |           |           | 2.0          | % |        |  | 2.0          | % |  |  | 5.0           | %
|Volatility                     |  |  |           |           |  |                   | 45.5         | %       |           |           | 45.5         | % |        |  | 46.2         | % |  |  | 28.0          | %
|Annual Risk Free Interest Rate |  |  | 6  months |           |  |                   | 2.9          | %       |           |           | 2.9          | % |        |  | 2.3          | % |  |  | 2.6           | %
|                               |  |  | 1 year    |           |  |                   | 2.9          | %       |           |           | 2.9          | % |        |  | 2.2          | % |  |  | 2.8           | %
|                               |  |  | 3 years   |           |  |                   | 3.3          | %       |           |           | 3.3          | % |        |  | 2.4          | % |  |  | 2.9           | %
|                               |  |  | 5 years   |           |  |                   | 3.6          | %       |           |           | 3.6          | % |        |  | 3.0          | % |  |  | 3.1           | %
|                               |  |  | 10  years |           |  |                   | 4.5          | %       |           |           | 4.5          | % |        |  | 3.8          | % |  |  | 3.3           | %
|                               |  |  |           |           |  |                   |              |         |           |           |              |   |        |  |              |   |  |  |               |  
|Maturity Dates                 |  |  |           |           |  |                   | Dec. 9, 2008 |         |           |           | Dec. 9, 2008 |   |        |  | May 21, 2009 |   |  |  | Dec. 14, 2011 |  

F-46



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)





Note 22  Financial Debts







| |                         
| | ------------------------
| | (a) Analysis by Maturity

|                                    |  |                     |         |  |      |  |         | 
|----------------------------------- |  | ------------------- | ------- |  | ---- |  | ------- | 
|                                    |  | 2005                |         |  | 2004 | 
|                                    |  |                     |         |  |      | 
|                                    |  | In millions of Euro |        
|Non-Current                         |  |                     |         |  |      |  |         | 
|Convertible Bonds OCEANE(1)         |  |                     | 650.1   |  |      |  | 670.9   | 
|Bond Loan(2)                        |  |                     | 650.0   |  |      |  | 650.0   | 
|Bank Borrowings and Credit Lines(3) |  |                     | 0.2     |  |      |  | 82.4    | 
|Refundable Advances (Non-Current)   |  |                     | 5.0     |  |      |  | 5.4     | 
|Others                              |  |                     |        |  |      |  |        | 
|                                    |  |                     |         |  |      | 
|                                    |  |                     | 1,305.3 |  |      |  | 1,408.7 | 
|                                    |  |                     |         |  |      | 
|Current(3)                          |  |                     |         |  |      |  |         | 
|Commercial Paper                    |  |                     | 150.0   |  |      |  | 150.0   | 
|Bank Overdrafts                     |  |                     | 39.2    |  |      |  | 15.8    | 
|Accrued Interest Payable            |  |                     | 24.2    |  |      |  | 24.7    | 
|Refundable Advances (Current)       |  |                     | 1.0     |  |      |  | 1.5     | 
|Capital Lease                       |  |                     |        |  |      |  |        | 
|                                    |  |                     |         |  |      | 
|(4)                                 |  |                     | 214.4   |  |      |  | 192.0   | 
|                                    |  |                     |         |  |      | 
|Total Financial Debts               |  |                     | 1,519.7 |  |      |  | 1,600.7 | 
|                                    |  |                     |         |  |      | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | As of December 31, 2005, convertible bonds OCEANE whose
    redemption date was set on January 1, 2007, present a
    maturity of one year and one day and therefore are classified as
    non-current. Their anticipated call occurred in March 2006 (see
    Note 23  Convertible Bonds and
    Note 34  Subsequent Events).                                                                      
|   
|(2) | On May 26, 2004, Technip issued a bond loan for an initial
    amount of
    650 million.
    The redemption date is set on May 26, 2011. The coupon
    payable on May 26 of each year amounts to 4.625% per year
    of the bond nominal value.                                                                                                                                                    
|   
|(3) | On December 28, 2005, Technip Coflexip USA Holding has
    reimbursed the use of U.S. $109 million
    (92.4 million)
    on a credit line raised by Technip in 2004 and amended in 2005
    with a bank consortium, for an authorized total amount of
    850.0 million.
    This credit facility had been used to finance part of the
    acquisition of the Aker Maritime ASA Deepwater Division.
|   
|(4) | The current financial debt of
    214.4 million
    mainly comprises the following financings:                                                                                                                                                                                                                                                                                                       



| |   |                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | Commercial papers for
    150.0 million
    (terms from 1 to 3 months);                                                                                                                                      
|
| | - | Bank overdrafts and other short-term bank facilities for
    39.2 million;                                                                                                                                   
|
| | - | Accrued interests on convertible bonds, bond loan and several
    bank borrowings for
    24.2 million
    and the short-term part of refundable advances (term less than
    one year) for
    1.0 million.

F-47



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)





(b) Comparison of Carrying
Amount and Fair Value of Non-Current Financial Debts


 


|                                  |  |                     |         |  |            |  |         | 
|--------------------------------- |  | ------------------- | ------- |  | ---------- |  | ------- | 
|                                  |  | Carrying            |         |  |           
|                                  |  | amounts             |         |  | Fair value | 
|                                  |  | 2005                |         |  | 2005       | 
|                                  |  |                     |         |  |            | 
|                                  |  | In millions of Euro |        
|Non-Current                       |  |                     |         |  |            |  |         | 
|Convertible Bonds OCEANE          |  |                     | 656.2   |  |            |  | 676.6   | 
|Bond Loan                         |  |                     | 668.1   |  |            |  | 702.0   | 
|Bank Borrowings and Credit Lines  |  |                     | 0.2     |  |            |  | 0.2     | 
|Refundable Advances (Non-Current) |  |                     | 5.0     |  |            |  | 5.0     | 
|                                  |  |                     |         |  |            | 
|                                  |  |                     | 1,329.5 |  |            |  | 1,383.8 | 
|                                  |  |                     |         |  |            | 




(c) Analysis by Type of
Interest Rate




|                      |  |                     |         |  |      |  |         | 
|--------------------- |  | ------------------- | ------- |  | ---- |  | ------- | 
|                      |  | 2005                |         |  | 2004 | 
|                      |  |                     |         |  |      | 
|                      |  | In millions of Euro |        
|Fixed Rates           |  |                     | 1,330.5 |  |      |  | 1,441.3 | 
|Floating Rates        |  |                     | 189.2   |  |      |  | 159.4   | 
|                      |  |                     |         |  |      | 
|Total Financial Debts |  |                     | 1,519.7 |  |      |  | 1,600.7 | 
|                      |  |                     |         |  |      | 













(d) Analysis by
Currency


|                      |  |                     |         |  |      |  |         | 
|--------------------- |  | ------------------- | ------- |  | ---- |  | ------- | 
|                      |  | 2005                |         |  | 2004 | 
|                      |  |                     |         |  |      | 
|                      |  | In millions of Euro |        
|Euro                  |  |                     | 1,481.0 |  |      |  | 1,503.0 | 
|U.S. Dollar           |  |                     | 0.2     |  |      |  | 80.4    | 
|Pound Sterling        |  |                     |        |  |      |  |        | 
|Others                |  |                     | 38.5    |  |      |  | 17.3    | 
|                      |  |                     |         |  |      | 
|Total Financial Debts |  |                     | 1,519.7 |  |      |  | 1,600.7 | 
|                      |  |                     |         |  |      | 

F-48



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)







| |                                
| | -------------------------------
| | (e) Schedule of Financial Debts

|                        |  |                     |       |  |      |  |       |      |  |  |       |  |  |          |     |  |      |  |      |        |  |  |       |  |  |  |       |  |  |  |         | 
|----------------------- |  | ------------------- | ----- |  | ---- |  | ----- | ---- |  |  | ----- |  |  | -------- | --- |  | ---- |  | ---- | ------ |  |  | ----- |  |  |  | ----- |  |  |  | ------- | 
|                        |  |                     |       |  |      |  |       |      |  |  |       |  |  | 2011 and |     |  |     
|                        |  | 2005                |       |  | 2006 |  |       | 2007 |  |  | 2008  |  |  | 2009     |     |  | 2010 |  |      | beyond |  |  | Total | 
|                        |  |                     |       |  |      |  |       |      |  |  |       |  |  |          |     |  |      |  |      |        |  |  |       | 
|                        |  | In millions of Euro |      
|As of December 31, 2005 |  |                     |       |  |      |  |       |      |  |  |       |  |  |          |     |  |      |  |      |        |  |  |       |  |  |  |       |  |  |  |         | 
|Fixed Rates             |  |                     |       |  |      |  | 25.2  |      |  |  | 650.6 |  |  |          | 0.6 |  |      |  | 0.4  |        |  |  | 0.3   |  |  |  | 653.4 |  |  |  | 1,330.5 | 
|Floating Rates          |  |                     |       |  |      |  | 189.2 |      |  |  |      |  |  |          |    |  |      |  |     |        |  |  |      |  |  |  |      |  |  |  | 189.2   | 
|                        |  |                     |       |  |      |  |       |      |  |  |       |  |  |          |     |  |      |  |      |        |  |  |       | 
|                        |  |                     |       |  |      |  | 214.4 |      |  |  | 650.6 |  |  |          | 0.6 |  |      |  | 0.4  |        |  |  | 0.3   |  |  |  | 653.4 |  |  |  | 1,519.7 | 
|                        |  |                     |       |  |      |  |       |      |  |  |       |  |  |          |     |  |      |  |      |        |  |  |       | 
|As of December 31, 2004 |  |                     |       |  |      |  |       |      |  |  |       |  |  |          |     |  |      |  |      |        |  |  |       |  |  |  |       |  |  |  |         | 
|Fixed Rates             |  |                     | 32.6  |  |      |  | 3.0   |      |  |  | 671.3 |  |  |          | 0.6 |  |      |  | 80.3 |        |  |  |      |  |  |  | 653.5 |  |  |  | 1,441.3 | 
|Floating Rates          |  |                     | 159.4 |  |      |  |      |      |  |  |      |  |  |          |    |  |      |  |     |        |  |  |      |  |  |  |      |  |  |  | 159.4   | 
|                        |  |                     |       |  |      |  |       |      |  |  |       |  |  |          |     |  |      |  |      |        |  |  |       | 
|                        |  |                     | 192.0 |  |      |  | 3.0   |      |  |  | 671.3 |  |  |          | 0.6 |  |      |  | 80.3 |        |  |  |      |  |  |  | 653.5 |  |  |  | 1,600.7 | 
|                        |  |                     |       |  |      |  |       |      |  |  |       |  |  |          |     |  |      |  |      |        |  |  |       | 

  Note 34  Subsequent
Events









| |                                                                                    
| | -----------------------------------------------------------------------------------
| | (f) Debt Guaranteed by Suretyship or Security with
    regard to Immovable Property

|                                               |  |                     |   |         |           |      |         |       |  |  |         |           |  |  |           |     |  |       |  |         |  |  |  |         | 
|---------------------------------------------- |  | ------------------- | - | ------- | --------- | ---- | ------- | ----- |  |  | ------- | --------- |  |  | --------- | --- |  | ----- |  | ------- |  |  |  | ------- | 
|                                               |  | 2005                |   |         |           | 2004 |        
|                                               |  |                     |   |         |           |      |        
|                                               |  |                     |   | Without |           |      |         |       |  |  |         | Without   |  |  |          
|                                               |  | Guarantee           |   |         | Guarantee |      |         | Total |  |  |         | Guarantee |  |  | Guarantee |     |  | Total | 
|                                               |  |                     |   |         |           |      |         |       |  |  |         |           |  |  |           |     |  |       | 
|                                               |  | In millions of Euro |  
|Current                                        |  |                     |   |         |           |      |         |       |  |  |         |           |  |  |           |     |  |       |  |         |  |  |  |         | 
|Commercial Paper                               |  |                     |  |         |           |      | 150.0   |       |  |  | 150.0   |           |  |  |           |    |  |       |  | 150.0   |  |  |  | 150.0   | 
|Bank Overdrafts, Current Facilities and Others |  |                     |  |         |           |      | 40.2    |       |  |  | 40.2    |           |  |  |           |    |  |       |  | 15.8    |  |  |  | 15.8    | 
|Short-Term Part of Long-Term Debts             |  |                     |  |         |           |      | 24.2    |       |  |  | 24.2    |           |  |  |           | 1.5 |  |       |  | 24.7    |  |  |  | 26.2    | 
|                                               |  |                     |   |         |           |      |         |       |  |  |         |           |  |  |           |     |  |       | 
|Current Financial Debt                         |  |                     |  |         |           |      | 214.4   |       |  |  | 214.4   |           |  |  |           | 1.5 |  |       |  | 190.5   |  |  |  | 192.0   | 
|                                               |  |                     |   |         |           |      |         |       |  |  |         |           |  |  |           |     |  |       | 
|Non-Current Financial Debt                     |  |                     |  |         |           |      | 1,305.3 |       |  |  | 1,305.3 |           |  |  |           |    |  |       |  | 1,408.7 |  |  |  | 1,408.7 | 
|                                               |  |                     |   |         |           |      |         |       |  |  |         |           |  |  |           |     |  |       | 







Note 23  Convertible Bonds


 Note 34  Subsequent Events






| |   |                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------
| | - | Issued at a price of
    170 (number of
    bonds issued: 4,667,647);                              
|
| | - | A coupon payable on January 1st of each year amounts to 1%
    per year of the bonds nominal value;

F-49



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |   |                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------
| | - | A redemption date was set on January 1, 2007 for bonds not
    converted into shares at such date;                 
|
| | - | A bond redemption price as of January 1, 2007 of
    190.07 in the
    event of non-conversion or non-exchange;   
|
| | - | An actuarial rate of yield for the bondholder of 3.25% per year
    in the event of non-conversion or non-exchange.





 





  


  


Note 34  
Subsequent Events





Note 24  Pensions and other Post-Employment
Benefit Plans








Germany






| |   |                                                                                                   
| | - | --------------------------------------------------------------------------------------------------
| | - | Two pension plans offer a pension payable from people who have
    reached the age of 65 years old



| |   |                                
| | - | -------------------------------
| |  | A differed benefit plan        
|
| |  | An early retirement plan (OAPT)



| |   |                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------
| | - | A jubilee plan provides a lump sum payment from one to three
    month of salary when employees have reached 25, 40 and
    45 years of service.

F-50



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


Brazil




United Arab Emirates




France






| |   |                                                                                                                                                                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | A pension plan which offers a capital payment based on the years
    of service and salary at retirement date                                                                                                                                                                                                
|
| | - | A post medical retirement benefit                                                                                                                                                                                                                                                                            
|
| | - | A jubilee plan which provides a lump sum payment after 20, 30,
    35 and 40 years of services (minimum of years spent in
    Technip required)                                                                                                                                                              
|
| | - | An additional defined contribution pension plan has been set up
    from January 1st, 2005 dedicated to a determined and
    homogeneous class of top managers. A 6% contribution on gross
    salary for these people is paid by the Company. This
    contribution respects the limits required by the Law.

Italy






| |   |                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------
| | - | A pension plan which offers a capital payment based on the years
    of service and salary             
|
| | - | An early retirement plan which provides a capital payment. This
    plan will end at December 31, 2006.

Norway




Netherlands




United Kingdom






F-51



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)







| |                                                               
| | --------------------------------------------------------------
| | (a) Net Benefit Expense Recognized in the Income
    Statement

|                                                        |  |                     |      |   |      |  |      |  
|------------------------------------------------------- |  | ------------------- | ---- | - | ---- |  | ---- | -
|                                                        |  | Pension Plans and   |     
|                                                        |  | Other Post-         |     
|                                                        |  | Employment Benefits |     
|                                                        |  |                     |     
|                                                        |  | 2005                |      |   | 2004 | 
|                                                        |  |                     |      |   |      | 
|                                                        |  | In millions of Euro |     
|Current Service Cost                                    |  |                     | 8.6  |   |      |  | 8.1  |  
|Financial Cost of Benefit Obligation                    |  |                     | 7.7  |   |      |  | 8.1  |  
|Expected Return on Plan Assets                          |  |                     | (3.8 | ) |      |  | (3.5 | )
|Net Actuarial (Gain)/Loss Recognized                    |  |                     | 1.5  |   |      |  | 0.3  |  
|Past Service Cost                                       |  |                     | (0.2 | ) |      |  | (0.1 | )
|Special Events (Curtailment)                            |  |                     | (2.2 | ) |      |  |     |  
|                                                        |  |                     |      |   |      | 
|Net Benefit Expense as Recorded in the Income Statement |  |                     | 11.6 |   |      |  | 12.9 |  
|                                                        |  |                     |      |   |      | 






| |                                                                
| | ---------------------------------------------------------------
| | (b) Benefit Asset/Liability Recognized in the Balance
    Sheet

|                                                   |  |                     |        |   |      |  |        |  
|-------------------------------------------------- |  | ------------------- | ------ | - | ---- |  | ------ | -
|                                                   |  | Pension Plans and   |       
|                                                   |  | Other Post-         |       
|                                                   |  | Employment Benefits |       
|                                                   |  |                     |       
|                                                   |  | 2005                |        |   | 2004 | 
|                                                   |  |                     |        |   |      | 
|                                                   |  | In millions of Euro |       
|Defined Benefit Obligation                         |  |                     | (194.6 | ) |      |  | (177.3 | )
|Fair Value of Plan Assets                          |  |                     | 77.4   |   |      |  | 68.8   |  
|                                                   |  |                     |        |   |      | 
|                                                   |  |                     | (117.2 | ) |      |  | (108.5 | )
|                                                   |  |                     |        |   |      | 
|Unrecognized Actuarial (Gains)/Losses              |  |                     | 5.5    |   |      |  | (0.6   | )
|Unrecognized Past Service Costs                    |  |                     | (2.5   | ) |      |  | (2.8   | )
|                                                   |  |                     |        |   |      | 
|Asset/(Liability) as recorded in the Balance Sheet |  |                     | (114.2 | ) |      |  | (111.9 | )
|                                                   |  |                     |        |   |      | 



|                                                            |  |                     |        |   |      |  |        |  
|----------------------------------------------------------- |  | ------------------- | ------ | - | ---- |  | ------ | -
|                                                            |  | Pension Plans and   |       
|                                                            |  | Other Post-         |       
|                                                            |  | Employment Benefits |       
|                                                            |  |                     |       
|                                                            |  | 2005                |        |   | 2004 | 
|                                                            |  |                     |        |   |      | 
|                                                            |  | In millions of Euro |       
|Net Opening Benefit Asset/(Liability)                       |  |                     | (111.9 | ) |      |  | (109.5 | )
|Exchange Differences on Foreign Plans                       |  |                     | (0.2   | ) |      |  | 0.1    |  
|Expenses Charged in the Income Statement                    |  |                     | (11.6  | ) |      |  | (12.9  | )
|Contributions Paid                                          |  |                     | 9.3    |   |      |  | 10.4   |  
|Disposals of Subsidiaries/Changes in Scope of Consolidation |  |                     | 0.2    |   |      |  |       |  
|                                                            |  |                     |        |   |      | 
|Net Closing Benefit Asset/(Liability)                       |  |                     | (114.2 | ) |      |  | (111.9 | )
|                                                            |  |                     |        |   |      | 

  


F-52



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                                                                 |  |                     |      |   |      |  |      |  
|-------------------------------------------------------------------------------- |  | ------------------- | ---- | - | ---- |  | ---- | -
|                                                                                 |  | Pension Plans       |     
|                                                                                 |  |                     |     
|                                                                                 |  | 2005                |      |   | 2004 | 
|                                                                                 |  |                     |      |   |      | 
|                                                                                 |  | In millions of Euro |     
|Opening Fair Value of Plan Assets                                                |  |                     | 68.8 |   |      |  | 59.3 |  
|Expected Return                                                                  |  |                     | 7.4  |   |      |  | 5.4  |  
|Contributions by Employer                                                        |  |                     | 3.1  |   |      |  | 7.8  |  
|Contributions by Employee                                                        |  |                     | 0.3  |   |      |  |     |  
|Benefits Paid                                                                    |  |                     | (2.8 | ) |      |  | (5.9 | )
|Actuarial Gains/(Losses)                                                         |  |                     |     |   |      |  |     |  
|Acquisitions and Disposals of Subsidiaries/Changes in Scope of
    Consolidation |  |                     |     |   |      |  | 2.2  |  
|Exchange Differences on Foreign Plans                                            |  |                     | 0.6  |   |      |  |     |  
|                                                                                 |  |                     |      |   |      | 
|Closing Fair Value of Plan Assets                                                |  |                     | 77.4 |   |      |  | 68.8 |  
|                                                                                 |  |                     |      |   |      | 



|              |  |       |     |  |        |  |     |             |  |  |      |   |  |       |   |   |  |  |      | 
|------------- |  | ----- | --- |  | ------ |  | --- | ----------- |  |  | ---- | - |  | ----- | - | - |  |  | ---- | 
|In %          |  | Bonds |     |  | Shares |  |     | Real Estate |  |  | Cash |   |  | Total |  
|              |  |       |     |  |        |  |     |             |  |  |      |   |  |       |  
|France        |  |       | 80% |  |        |  | 15% |             |  |  | 5    | % |  |       |  |   |  |  | 100% | 
|Germany       |  |       | 70% |  |        |  | 30% |             |  |  |     |   |  |       |  |   |  |  | 100% | 
|Norway        |  |       | 62% |  |        |  | 17% |             |  |  | 16   | % |  |       | 5 | % |  |  | 100% | 
|Netherlands   |  |       | 75% |  |        |  | 20% |             |  |  |     |   |  |       | 5 | % |  |  | 100% | 
|Great-Britain |  |       | 8%  |  |        |  | 81% |             |  |  | 2    | % |  |       | 9 | % |  |  | 100% | 




(c) Actuarial
Assumptions




|                               |  |          |               |  |        |      |              |  |          |  |  |        |  |  |  |                            | 
|------------------------------ |  | -------- | ------------- |  | ------ | ---- | ------------ |  | -------- |  |  | ------ |  |  |  | -------------------------- | 
|                               |  | 2005     |               |  |        | 2004 |             
|                               |  |          |               |  |        |      |             
|                               |  | Euroland |               |  | Others |      |              |  | Euroland |  |  | Others | 
|                               |  |          |               |  |        |      |              |  |          |  |  |        | 
|Discount Rate                  |  |          | 4.0%          |  |        |      | 4.5 to 10%   |  |          |  |  | 4.5%   |  |  |  | From 5% to 10%             | 
|Expected Return on Plan Assets |  |          | 4.0% to 4.45% |  |        |      | 5.0% to 7.0% |  |          |  |  | 5.1%   |  |  |  | 5.1%                       | 
|Future Salary Increase         |  |          | 3.0 to 5.0%   |  |        |      | 3.0% to 6.0% |  |          |  |  | 3.0%   |  |  |  | Inflation rate + 1.5/3.25% | 
|Future Pension Increase        |  |          |               |  |        |      |              |  |          |  |  |        |  |  |  |                            | 
|Healthcare Cost Increase       |  |          |               |  |        |      |              |  |          |  |  |        |  |  |  |                            | 
|Inflation Rate                 |  |          | 2.0%          |  |        |      | 2.7% to 5.0% |  |          |  |  | 2.0%   |  |  |  | From 2.75% to 4%           | 




Note 25  Provisions


Note 1 C. (l) Provisions


F-53



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                   |  |                     |       |  |          |  |      |            |        |           |           |         |          |             |       |        |       |  |              |      |  |  |       |   |  |  |       | 
|---------------------------------- |  | ------------------- | ----- |  | -------- |  | ---- | ---------- | ------ | --------- | --------- | ------- | -------- | ----------- | ----- | ------ | ----- |  | ------------ | ---- |  |  | ----- | - |  |  | ----- | 
|                                   |  | As of               |       |  |          |  |      |            | Unused |           |           | Foreign |          |             |       |        | As of | 
|                                   |  | January 1,          |       |  |          |  | Used |            |        | Provision |           |         | Exchange |             |       | Others |       |  | December 31, |     
|                                   |  | 2005                |       |  | Increase |  |      | Provisions |        |           | Reversals |         |          | Adjustments |       |        | (**)  |  |              | 2005 | 
|                                   |  |                     |       |  |          |  |      |            |        |           |           |         |          |             |       |        |       |  |              |      | 
|                                   |  | In millions of Euro |      
|Non-Current                        |  |                     |       |  |          |  |      |            |        |           |           |         |          |             |       |        |       |  |              |      |  |  |       |   |  |  |       | 
|Employee Benefits(*)               |  |                     | 111.9 |  |          |  | 11.6 |            |        |           | (10.3     | )       |          |             | (0.6  | )      |       |  | 0.8          |      |  |  | (11.4 | ) |  |  | 102.0 | 
|Tax(1)                             |  |                     |      |  |          |  | 4.6  |            |        |           | (2.1      | )       |          |             | (1.4  | )      |       |  |             |      |  |  | (0.4  | ) |  |  | 0.7   | 
|Litigation                         |  |                     |      |  |          |  |     |            |        |           |          |         |          |             |      |        |       |  |             |      |  |  | 3.0   |   |  |  | 3.0   | 
|Other Provisions (Non- Current)(2) |  |                     | 3.4   |  |          |  | 3.3  |            |        |           | (4.2      | )       |          |             | (0.5  | )      |       |  | 0.3          |      |  |  | (1.7  | ) |  |  | 0.6   | 
|                                   |  |                     |       |  |          |  |      |            |        |           |           |         |          |             |       |        |       |  |              |      | 
|                                   |  |                     | 115.3 |  |          |  | 19.5 |            |        |           | (16.6     | )       |          |             | (2.5  | )      |       |  | 1.1          |      |  |  | (10.5 | ) |  |  | 106.3 | 
|                                   |  |                     |       |  |          |  |      |            |        |           |           |         |          |             |       |        |       |  |              |      | 
|Current                            |  |                     |       |  |          |  |      |            |        |           |           |         |          |             |       |        |       |  |              |      |  |  |       |   |  |  |       | 
|Employee Benefits(*)               |  |                     |      |  |          |  |     |            |        |           |          |         |          |             |      |        |       |  |             |      |  |  | 10.7  |   |  |  | 10.7  | 
|Contingencies related to Contracts |  |                     | 76.5  |  |          |  | 26.4 |            |        |           | (8.4      | )       |          |             | (21.9 | )      |       |  | 9.1          |      |  |  | (6.1  | ) |  |  | 75.6  | 
|Restructuring                      |  |                     | 7.0   |  |          |  | 4.0  |            |        |           | (3.2      | )       |          |             |      |        |       |  |             |      |  |  | (4.4  | ) |  |  | 3.4   | 
|Tax(1)                             |  |                     |      |  |          |  | 0.4  |            |        |           |          |         |          |             |      |        |       |  |             |      |  |  | 8.8   |   |  |  | 9.2   | 
|Litigation                         |  |                     | 2.0   |  |          |  | 0.3  |            |        |           | (0.5      | )       |          |             | (0.1  | )      |       |  | 0.1          |      |  |  | 0.7   |   |  |  | 2.5   | 
|Reinsurance(3)                     |  |                     | 4.6   |  |          |  | 5.1  |            |        |           | (0.2      | )       |          |             |      |        |       |  |             |      |  |  |      |   |  |  | 9.5   | 
|Other Provisions (Current)(2)      |  |                     | 31.4  |  |          |  | 8.3  |            |        |           | (6.5      | )       |          |             | (9.1  | )      |       |  | 1.0          |      |  |  | (2.6  | ) |  |  | 22.5  | 
|                                   |  |                     |       |  |          |  |      |            |        |           |           |         |          |             |       |        |       |  |              |      | 
|                                   |  |                     | 121.5 |  |          |  | 44.5 |            |        |           | (18.8     | )       |          |             | (31.1 | )      |       |  | 10.2         |      |  |  | 7.1   |   |  |  | 133.4 | 
|                                   |  |                     |       |  |          |  |      |            |        |           |           |         |          |             |       |        |       |  |              |      | 
|Total Provisions                   |  |                     | 236.8 |  |          |  | 64.0 |            |        |           | (35.4     | )       |          |             | (33.6 | )      |       |  | 11.3         |      |  |  | (3.4  | ) |  |  | 239.7 | 
|                                   |  |                     |       |  |          |  |      |            |        |           |           |         |          |             |       |        |       |  |              |      | 






|     |                                                                                                                                                                                                                          
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(*)  | See Note 24  Pensions and other
    Post-Employment Benefit Plans.                                                                                                                                                      
|    
|(**) | Mainly including reclassifications of current / non-current
    items from January 1, 2005 to December 31, 2005.                                                                                                         
|    
|(1)  | Tax provisions essentially relate to contingencies on tax
    adjustments regarding completed or ongoing contracts.                                                                                                      
|    
|(2)  | Other provisions mainly relate to accrued
    liabilities that are not directly connected to the operating
    cycle with maturity greater than 1 year, such as provisions
    on administrative litigations above all.
|    
|(3)  | Reinsurance provisions have been recorded at the level of the
    Groups insurance captive (Engineering RE AG) as per
    IFRS 4.                                                                                       

F-54



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                   |  |                     |       |  |      |  |      |      |  |  |      |  |  |      |        |  |      |     |     |      |  |  |           |  |  |  |      |  |  |  |      | 
|---------------------------------- |  | ------------------- | ----- |  | ---- |  | ---- | ---- |  |  | ---- |  |  | ---- | ------ |  | ---- | --- | --- | ---- |  |  | --------- |  |  |  | ---- |  |  |  | ---- | 
|                                   |  | As of               |       |  |      |  |      |      |  |  |      |  |  |      |        |  |     
|                                   |  | December 31,        |       |  |      |  |      |      |  |  |      |  |  |      | Beyond |  |      | Not |    
|                                   |  | 2005                |       |  | 2006 |  |      | 2007 |  |  | 2008 |  |  | 2009 |        |  | 2010 |     |     | 2010 |  |  | Allocable | 
|                                   |  |                     |       |  |      |  |      |      |  |  |      |  |  |      |        |  |      |     |     |      |  |  |           | 
|                                   |  | In millions of Euro |      
|Non-Current                        |  |                     |       |  |      |  |      |      |  |  |      |  |  |      |        |  |      |     |     |      |  |  |           |  |  |  |      |  |  |  |      | 
|Employee Benefits                  |  |                     | 102.0 |  |      |  |     |      |  |  | 8.4  |  |  |      | 8.4    |  |      |     | 8.4 |      |  |  | 8.4       |  |  |  | 65.0 |  |  |  | 3.4  | 
|Tax                                |  |                     | 0.7   |  |      |  |     |      |  |  | 0.7  |  |  |      |       |  |      |     |    |      |  |  |          |  |  |  |     |  |  |  |     | 
|Litigation                         |  |                     | 3.0   |  |      |  |     |      |  |  | 3.0  |  |  |      |       |  |      |     |    |      |  |  |          |  |  |  |     |  |  |  |     | 
|Other Provisions (Non-Current)     |  |                     | 0.6   |  |      |  |     |      |  |  |     |  |  |      |       |  |      |     |    |      |  |  |          |  |  |  |     |  |  |  | 0.6  | 
|                                   |  |                     |       |  |      |  |      |      |  |  |      |  |  |      |        |  |      |     |     |      |  |  |           | 
|                                   |  |                     | 106.3 |  |      |  |     |      |  |  | 12.1 |  |  |      | 8.4    |  |      |     | 8.4 |      |  |  | 8.4       |  |  |  | 65.0 |  |  |  | 4.0  | 
|                                   |  |                     |       |  |      |  |      |      |  |  |      |  |  |      |        |  |      |     |     |      |  |  |           | 
|Current                            |  |                     |       |  |      |  |      |      |  |  |      |  |  |      |        |  |      |     |     |      |  |  |           |  |  |  |      |  |  |  |      | 
|Employee Benefits                  |  |                     | 10.7  |  |      |  | 10.7 |      |  |  |     |  |  |      |       |  |      |     |    |      |  |  |          |  |  |  |     |  |  |  |     | 
|Contingencies related to Contracts |  |                     | 75.6  |  |      |  | 62.8 |      |  |  | 4.9  |  |  |      |       |  |      |     | 0.1 |      |  |  | 0.3       |  |  |  | 6.5  |  |  |  | 1.0  | 
|Restructuring                      |  |                     | 3.4   |  |      |  | 2.9  |      |  |  | 0.5  |  |  |      |       |  |      |     |    |      |  |  |          |  |  |  |     |  |  |  |     | 
|Tax                                |  |                     | 9.2   |  |      |  | 9.2  |      |  |  |     |  |  |      |       |  |      |     |    |      |  |  |          |  |  |  |     |  |  |  |     | 
|Litigation                         |  |                     | 2.5   |  |      |  |     |      |  |  | 2.3  |  |  |      |       |  |      |     |    |      |  |  |          |  |  |  |     |  |  |  | 0.2  | 
|Reinsurance                        |  |                     | 9.5   |  |      |  |     |      |  |  |     |  |  |      |       |  |      |     |    |      |  |  |          |  |  |  |     |  |  |  | 9.5  | 
|Other Provisions (Current)         |  |                     | 22.5  |  |      |  | 7.7  |      |  |  | 5.9  |  |  |      | 0.9    |  |      |     | 0.3 |      |  |  |          |  |  |  | 2.5  |  |  |  | 5.2  | 
|                                   |  |                     |       |  |      |  |      |      |  |  |      |  |  |      |        |  |      |     |     |      |  |  |           | 
|                                   |  |                     | 133.4 |  |      |  | 93.3 |      |  |  | 13.6 |  |  |      | 0.9    |  |      |     | 0.4 |      |  |  | 0.3       |  |  |  | 9.0  |  |  |  | 15.9 | 
|                                   |  |                     |       |  |      |  |      |      |  |  |      |  |  |      |        |  |      |     |     |      |  |  |           | 
|Total Provisions                   |  |                     | 239.7 |  |      |  | 93.3 |      |  |  | 25.7 |  |  |      | 9.3    |  |      |     | 8.8 |      |  |  | 8.7       |  |  |  | 74.0 |  |  |  | 19.9 | 
|                                   |  |                     |       |  |      |  |      |      |  |  |      |  |  |      |        |  |      |     |     |      |  |  |           | 






Note 26  Trade Payables


 





Note 27  Other Current Payables


|                                      |  |                     |       |  |      |  |       | 
|------------------------------------- |  | ------------------- | ----- |  | ---- |  | ----- | 
|                                      |  | 2005                |       |  | 2004 | 
|                                      |  |                     |       |  |      | 
|                                      |  | In millions of Euro |      
|Payroll Costs                         |  |                     | 129.1 |  |      |  | 109.6 | 
|Social Security Charges               |  |                     | 29.5  |  |      |  | 29.4  | 
|Other Tax Payables                    |  |                     | 26.9  |  |      |  | 51.5  | 
|Deferred Income                       |  |                     | 70.8  |  |      |  | 31.6  | 
|Ongoing Project Accruals              |  |                     | 227.1 |  |      |  | 194.2 | 
|Rent to Be Paid(1)                    |  |                     | 22.9  |  |      |  | 22.0  | 
|Dividends to Be Paid                  |  |                     | 2.2   |  |      |  | 1.1   | 
|Fee Accruals                          |  |                     | 0.6   |  |      |  | 3.3   | 
|Current Accounts on Ongoing Contracts |  |                     | 59.8  |  |      |  | 22.9  | 
|Subsidies                             |  |                     | 6.4   |  |      |  | 13.6  | 
|Debt Covered by Guarantee             |  |                     | 8.6   |  |      |  | 15.6  | 
|Others                                |  |                     | 123.2 |  |      |  | 276.9 | 
|                                      |  |                     |       |  |      | 
|Total Other Current Payables          |  |                     | 707.1 |  |      |  | 771.7 | 
|                                      |  |                     |       |  |      | 

F-55



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)







|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Technip has entered into a 12-year lease for its head office at
    La Défense (Paris, France) effective March 1, 2003.
    Under the terms of the lease, Technip was entitled to take
    advantage of the first year of occupancy at no charge. In
    accordance with IAS 17, an annual rental expense for the
    entire 12-year lease duration has been determined on the basis
    of a total lease value. This has led the Group to record a
    rental charge corresponding to the first year of occupancy
    versus a debt in its opening balance sheet as of January 1,
    2004.






Note 28  Derivatives


Note 1 C. (c) Foreign Currency
Transactions and Financial Instruments


|                                   |  |                     |     |  |             |  |      | 
|---------------------------------- |  | ------------------- | --- |  | ----------- |  | ---- | 
|                                   |  | 2005                |    
|                                   |  |                     |    
|                                   |  | Assets              |     |  | Liabilities | 
|                                   |  |                     |     |  |             | 
|                                   |  | In millions of Euro |    
|Derivatives                        |  |                     |     |  |             |  |      | 
|Forward Foreign Exchange Contracts |  |                     | 3.5 |  |             |  | 77.1 | 
|                                   |  |                     |     |  |             | 
|Net Value                          |  |                     |     |  |             |  | 73.6 | 
|                                   |  |                     |     |  |             | 

Note 33 (b) Market related exposure and financial
instruments





Note 29  Payroll and Payroll Staff






 





Note 30  Related Party Disclosure




| |                                      
| | -------------------------------------
| | (a) Transactions with Related Parties

|                                                   |  |      |      |  |      |  |      | 
|-------------------------------------------------- |  | ---- | ---- |  | ---- |  | ---- | 
|                                                   |  | 2005 |      |  | 2004 | 
|                                                   |  |      |      |  |      | 
|Entities with Significant Influence over the Group |  |      |      |  |      |  |      | 
|% of Technip Ordinary Shares                       |  |      |      |  |      |  |      | 
|Institut Français du Pétrole                       |  |      | 3.2% |  |      |  | 3.2% | 
|Oppenheimer Funds Inc                              |  |      | 5.9% |  |      |  | 6.0% | 
|Lehman Brothers International                      |  |      | 4.7% |  |      |  | 0.0% | 

 




| |                                                           
| | ----------------------------------------------------------
| | (b) Salary and Benefits of the Chief Executive
    Officer



F-56



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)










|        |  |          |         |      |       |  |           |  |       |  |  |          |  |  |       |         |  |  |  |         | 
|------- |  | -------- | ------- | ---- | ----- |  | --------- |  | ----- |  |  | -------- |  |  | ----- | ------- |  |  |  | ------- | 
|2005    |  |          |         | 2004 |      
|        |  |          |         |      |      
|Basic   |  | Variable |         |      | Total |  |           |  | Basic |  |  | Variable |  |  | Total |        
|        |  |          |         |      |       |  |           |  |       |  |  |          |  |  |       |        
|609,000 |  |          | 464,000 |      |       |  | 1,073,000 |  |       |  |  | 580,000  |  |  |       | 379,420 |  |  |  | 959,420 | 




Note 31  Joint Ventures




|                        |  |                     |         |   |      |  |        |  
|----------------------- |  | ------------------- | ------- | - | ---- |  | ------ | -
|                        |  | 2005                |         |   | 2004 | 
|                        |  |                     |         |   |      | 
|                        |  | In millions of Euro |        
|Assets                  |  |                     |         |   |      |  |        |  
|Non-Current Assets      |  |                     | 2.1     |   |      |  | 0.7    |  
|Current Assets          |  |                     | 1,080.2 |   |      |  | 336.7  |  
|                        |  |                     |         |   |      | 
|                        |  |                     | 1,082.3 |   |      |  | 337.4  |  
|                        |  |                     |         |   |      | 
|Liabilities             |  |                     |         |   |      |  |        |  
|Non-Current Liabilities |  |                     | 3.2     |   |      |  | 8.5    |  
|Current Liabilities     |  |                     | 1,058.3 |   |      |  | 357.3  |  
|                        |  |                     |         |   |      | 
|                        |  |                     | 1,061.5 |   |      |  | 365.8  |  
|                        |  |                     |         |   |      | 
|Net Assets              |  |                     | 20.8    |   |      |  | (28.4  | )
|                        |  |                     |         |   |      | 
|Income                  |  |                     | 666.2   |   |      |  | 628.3  |  
|Expenses                |  |                     | (640.1  | ) |      |  | (624.5 | )
|                        |  |                     |         |   |      | 
|Net Income after Tax    |  |                     | 26.1    |   |      |  | 3.8    |  
|                        |  |                     |         |   |      | 






F-57



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)





Note 32  Off-Balance Sheet Commitments and
Contingencies


Note 22  Financial Debts


|                                            |  |                     |         |  |                                          |  |         |              |  |  |                   |  |  |  |       | 
|------------------------------------------- |  | ------------------- | ------- |  | ---------------------------------------- |  | ------- | ------------ |  |  | ----------------- |  |  |  | ----- | 
|                                            |  | Total as of         |         |  | Scheduled Payments Sorted out per Period | 
|                                            |  | December 31,        |         |  |                                          | 
|                                            |  | 2005                |         |  | Less than 1 year                         |  |         | 1 to 5 years |  |  | More than 5 years | 
|                                            |  |                     |         |  |                                          |  |         |              |  |  |                   | 
|                                            |  | In millions of Euro |        
|Contractual Commitments                     |  |                     |         |  |                                          |  |         |              |  |  |                   |  |  |  |       | 
|Capital leases                              |  |                     |        |  |                                          |  |        |              |  |  |                  |  |  |  |      | 
|Operating leases                            |  |                     | 356.0   |  |                                          |  | 48.1    |              |  |  | 155.7             |  |  |  | 152.2 | 
|Foreign exchange rate financial instruments |  |                     | 2,353.8 |  |                                          |  | 1,641.0 |              |  |  | 712.8             |  |  |  |      | 
|Interest rate financial instruments         |  |                     |        |  |                                          |  |        |              |  |  |                  |  |  |  |      | 
|                                            |  |                     |         |  |                                          |  |         |              |  |  |                   | 
|                                            |  |                     | 2,709.8 |  |                                          |  | 1,689.1 |              |  |  | 868.5             |  |  |  | 152.2 | 
|                                            |  |                     |         |  |                                          |  |         |              |  |  |                   | 

|                           |  |                     |          |  |                                   |  |         |              |  |  |                   |  |  |  |         | 
|-------------------------- |  | ------------------- | -------- |  | --------------------------------- |  | ------- | ------------ |  |  | ----------------- |  |  |  | ------- | 
|                           |  | Total as of         |          |  | Amounts of Commitments per Period | 
|                           |  | December 31,        |          |  |                                   | 
|                           |  | 2005                |          |  | Less than 1 year                  |  |         | 1 to 5 years |  |  | More than 5 years | 
|                           |  |                     |          |  |                                   |  |         |              |  |  |                   | 
|                           |  | In millions of Euro |         
|Other Commitments          |  |                     |          |  |                                   |  |         |              |  |  |                   |  |  |  |         | 
|Parent Company Guarantees  |  |                     | 23,234.9 |  |                                   |  | 4,672.9 |              |  |  | 17,619.9          |  |  |  | 942.1   | 
|Other Commitments Given    |  |                     | 2,817.0  |  |                                   |  | 852.1   |              |  |  | 1,705.4           |  |  |  | 259.5   | 
|                           |  |                     |          |  |                                   |  |         |              |  |  |                   | 
|Total Commitments Given    |  |                     | 26,051.9 |  |                                   |  | 5,525.0 |              |  |  | 19,325.3          |  |  |  | 1,201.6 | 
|                           |  |                     |          |  |                                   |  |         |              |  |  |                   | 
|Total Commitments Received |  |                     | 675.1    |  |                                   |  | 219.1   |              |  |  | 440.1             |  |  |  | 15.9    | 
|                           |  |                     |          |  |                                   |  |         |              |  |  |                   | 






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



  




|                                                        |  |                     |       | 
|------------------------------------------------------- |  | ------------------- | ----- | 
|                                                        |  | Operating Leases    |      
|                                                        |  |                     |      
|                                                        |  | In millions of Euro |      
|As of December 31,                                      |  |                     |       | 
|2006                                                    |  |                     | 48.1  | 
|2007                                                    |  |                     | 41.5  | 
|2008                                                    |  |                     | 40.4  | 
|2009                                                    |  |                     | 38.6  | 
|2010                                                    |  |                     | 35.2  | 
|2011 and beyond                                         |  |                     | 152.2 | 
|                                                        |  |                     |      
|Total Current Net Value of Capital and Operating Leases |  |                     | 356.0 | 
|                                                        |  |                     |      




F-58



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)









| |                                   
| | ----------------------------------
| | (b) Bank and Commercial Guarantees



|                           |  |                     |          |  |      |  |          | 
|-------------------------- |  | ------------------- | -------- |  | ---- |  | -------- | 
|                           |  | 2005                |          |  | 2004 | 
|                           |  |                     |          |  |      | 
|                           |  | In millions of Euro |         
|Parent Company Guarantees  |  |                     | 23,234.9 |  |      |  | 13,789.9 | 
|Other Commitments Given    |  |                     | 2,817.0  |  |      |  | 1,418.6  | 
|                           |  |                     |          |  |      | 
|Total Commitments Given    |  |                     | 26,051.9 |  |      |  | 15,208.5 | 
|                           |  |                     |          |  |      | 
|Total Commitments Received |  |                     | 675.1    |  |      |  | 539.4    | 
|                           |  |                     |          |  |      | 










Total Parent Company Guarantees Issued within Joint
Ventures


|         |  |                                                              |         |                           |                 |  |                           |                 |  |                           |           |  |  |  |   | 
|-------- |  | ------------------------------------------------------------ | ------- | ------------------------- | --------------- |  | ------------------------- | --------------- |  | ------------------------- | --------- |  |  |  | - | 
|         |  | Allocation as per % of Technips Ownership in Joint Ventures |        
|         |  |                                                              |        
|         |  |                                                              |         | Greater than 25% and less |                 |  | Greater than 40% and less |                 |  | Greater than 75% and less |          
|TOTAL    |  | Less or equal to 25%                                         |         |                           | or equal to 40% |  |                           | or equal to 75% |  |                           | than 100% | 
|         |  |                                                              |         |                           |                 |  |                           |                 |  |                           |           | 
|         |  | In millions of Euro                                          |        
|14,280.1 |  |                                                              | 2,927.7 |                           |                 |  | 9,401.3                   |                 |  |                           | 1,951.1   |  |  |  |  | 










| |                                                     
| | ----------------------------------------------------
| | (c) Contingencies: Exceptional Events and Litigation



Note 25  Provisions


F-59



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


SEAMEC Litigation






ITP Litigation




Pending Investigation












F-60



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)





Note 33  Market Related Exposure and
Financial Instruments







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

A


B




C  Note 23  Convertible Bonds






D  Note 22  Financial Debts


E




| |                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1/ An authorized
    850 million
    credit facility, which was signed in 2004 and amended in 2005 by
    Technip (single redemption date: June 20, 2010). This
    credit line is not guaranteed by security with regard to
    immovable property granted on the Groups assets. This
    credit line comes with the usual commitments from Technip and
    the affiliates entitled to borrow, excluding all financial
    ratios.
|
| | The amendment signed in June 2005 mainly related to the credit
    maturity extension to June 2010 and to the decrease in financial
    conditions.                                                                                                                                                                                                                                                                                  
|
| | 2/ Two credit facilities granted to Technip, for an amount of
    125 million
    each, usable in Euros or in U.S. dollars. These expiry
    dates are respectively May 26, 2010 and June 27, 2010.
    They have the same commitments as the credit above described.                                                                                                                                                               
|
| | 3/ Various unused credit facilities amounting to
    35.7 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. These credit
    agreements include a variable interest rate clause in case they
    are used.                                                                                  

  


F   


F-61



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


Note 22  Financial
Debts Note 34  Subsequent Events







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

Note 1 C. (c) Foreign Currency
Transactions and Financial Instruments




|                                             |  |                     |       |  |      |  |         |            |      |  |               |   |  |               |         |  |  |  |         | 
|-------------------------------------------- |  | ------------------- | ----- |  | ---- |  | ------- | ---------- | ---- |  | ------------- | - |  | ------------- | ------- |  |  |  | ------- | 
|                                             |  | 2005                |       |  |     
|                                             |  |                     |       |  |     
|                                             |  | Maturity            |       |  |      |  |        
|                                             |  |                     |       |  |      |  |        
|                                             |  | 2007                |       |  |      |  |         |            | 2004 | 
|                                             |  | and beyond          |       |  | 2006 |  |         | Fair Value |      |  | Nominal Value |   |  | Nominal Value |        
|                                             |  |                     |       |  |      |  |         |            |      |  |               |   |  |               |        
|                                             |  | In millions of Euro |      
|Hedging Instruments                          |  |                     |       |  |      |  |         |            |      |  |               |   |  |               |         |  |  |  |         | 
|Buy Foreign Currency, Sell National Currency |  |                     | 53.0  |  |      |  | 86.4    |            |      |  | 0.4           |   |  |               | 139.4   |  |  |  | 233.9   | 
|(Forwards and Swaps)                         |  |                     |       |  |      |  |         |            |      |  |               |   |  |               |         |  |  |  |         | 
|Sell Foreign Currency, Buy National Currency |  |                     | 543.8 |  |      |  | 1,009.2 |            |      |  | (77.7         | ) |  |               | 1,553.0 |  |  |  | 710.2   | 
|(Forwards, Swaps and Options)                |  |                     |       |  |      |  |         |            |      |  |               |   |  |               |         |  |  |  |         | 
|Buy/Sell Foreign Currencies                  |  |                     | 116.0 |  |      |  | 545.4   |            |      |  | 3.7           |   |  |               | 661.4   |  |  |  | 343.0   | 
|                                             |  |                     |       |  |      |  |         |            |      |  |               |   |  |               |        
|                                             |  |                     | 712.8 |  |      |  | 1,641.0 |            |      |  | (73.6         | ) |  |               | 2,353.8 |  |  |  | 1,287.1 | 
|                                             |  |                     |       |  |      |  |         |            |      |  |               |   |  |               |        






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



F-62



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                     |  |                     |          |   |              |  |       |              |  |  |       |  |  |  |          |  
|------------------------------------ |  | ------------------- | -------- | - | ------------ |  | ----- | ------------ |  |  | ----- |  |  |  | -------- | -
|                                     |  | Call Money Rate     |          |   |              |  |       |              | 
|                                     |  | within 1 year and   |          |   |              |  |       |              | 
|                                     |  | Floating Rate       |          |   | 1 to 5 years |  |       | Over 5 years |  |  | Total | 
|                                     |  |                     |          |   |              |  |       |              |  |  |       | 
|                                     |  | In millions of Euro |         
|Fixed Rate                           |  |                     |          |   |              |  |       |              |  |  |       |  |  |  |          |  
|Convertible Bonds                    |  |                     | 6.1      |   |              |  | 650.1 |              |  |  |      |  |  |  | 656.2    |  
|(including Accrued Interest Payable) |  |                     |          |   |              |  |       |              |  |  |       |  |  |  |          |  
|Bond Loan                            |  |                     | 18.1     |   |              |  |      |              |  |  | 650.0 |  |  |  | 668.1    |  
|(including Accrued Interest Payable) |  |                     |          |   |              |  |       |              |  |  |       |  |  |  |          |  
|Bank Borrowings and Credit Lines     |  |                     | 0.2      |   |              |  | 0.1   |              |  |  |      |  |  |  | 0.3      |  
|(including Accrued Interest Payable) |  |                     |          |   |              |  |       |              |  |  |       |  |  |  |          |  
|Refundable Advances                  |  |                     | 0.9      |   |              |  | 1.6   |              |  |  | 3.4   |  |  |  | 5.9      |  
|                                     |  |                     |          |   |              |  |       |              |  |  |       | 
|                                     |  |                     | 25.3     |   |              |  | 651.8 |              |  |  | 653.4 |  |  |  | 1,330.5  |  
|                                     |  |                     |          |   |              |  |       |              |  |  |       | 
|Floating Rate                        |  |                     |          |   |              |  |       |              |  |  |       |  |  |  |          |  
|Cash and Cash Equivalents            |  |                     | (2,187.8 | ) |              |  |      |              |  |  |      |  |  |  | (2,187.8 | )
|Commercial Papers                    |  |                     | 150.0    |   |              |  |      |              |  |  |      |  |  |  | 150.0    |  
|Bank Overdrafts                      |  |                     | 39.2     |   |              |  |      |              |  |  |      |  |  |  | 39.2     |  
|                                     |  |                     |          |   |              |  |       |              |  |  |       | 
|                                     |  |                     | (1,998.6 | ) |              |  |      |              |  |  |      |  |  |  | (1,998.6 | )
|                                     |  |                     |          |   |              |  |       |              |  |  |       | 
|                                     |  |                     | (1,973.3 | ) |              |  | 651.8 |              |  |  | 653.4 |  |  |  | (668.1   | )
|                                     |  |                     |          |   |              |  |       |              |  |  |       | 

Analysis of the sensitivity of the situation to the change in
interest rates:






Method of monitoring the interest rate risk:








 







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



F-63



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)







Note 34  Subsequent Events


Convertible Bonds







 


 


Assets Held For Sale


 





Note 35  Main Consolidated Companies and
Equity Associates






|                                   |  |                |  |                      
|---------------------------------- |  | -------------- |  | ---------------------
|                                   |  |                |  | December 31, 2005    
|Fully Consolidated Companies       |  | Country        |  | % Control            
|                                   |  |                |  |                      
|Technip                            |  | France         |  | Consolidating company
|Technip France                     |  | France         |  | 100%                 
|Technip Eurocash                   |  | France         |  | 100%                 
|Technip Italy                      |  | Italy          |  | 100%                 
|TPL-Tecnologie Progetti Lavori Spa |  | Italy          |  | 100%                 
|TPG U.K.                           |  | United Kingdom |  | 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%                 

F-64



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                                                                           |  |                             |  |                  
|-------------------------------------------------------------------------- |  | --------------------------- |  | -----------------
|                                                                           |  |                             |  | December 31, 2005
|Fully Consolidated Companies                                               |  | Country                     |  | % Control        
|                                                                           |  |                             |  |                  
|Abay Engineering                                                           |  | Belgium                     |  | 100%             
|Technip Far East                                                           |  | Malaysia                    |  | 100%             
|Technip International AG                                                   |  | Switzerland                 |  | 100%             
|Technipetrol-Technip-Technip International SNC                             |  | France                      |  | 100%             
|Technip KT India                                                           |  | India                       |  | 100%             
|Technip Upstream Management Inc./Technip Upstream Services Inc./           |  | U.S.A.                      |  | 100%             
|Technip Upstream Houston Inc.
    Technip U.S.A.                           |  | U.S.A.                      |  | 100%             
|Technip Benelux BV                                                         |  | Netherlands                 |  | 100%             
|Technip Americas                                                           |  | U.S.A.                      |  | 100%             
|Technip Holding Benelux BV                                                 |  | Netherlands                 |  | 100%             
|Technip Germany                                                            |  | Germany                     |  | 100%             
|Technip Seiffert                                                           |  | Germany                     |  | 100%             
|Technip Singapore                                                          |  | Singapore                   |  | 100%             
|Technip Middle East                                                        |  | United Arab Emirates        |  | 100%             
|Technip Engenharia                                                         |  | Brazil                      |  | 100%             
|Citex                                                                      |  | France                      |  | 100%             
|Eurobatch                                                                  |  | France                      |  | 100%             
|SNPE Ingénierie Défense                                                    |  | France                      |  | 100%             
|Seal Engineering                                                           |  | France                      |  | 100%             
|Compagnie Française de Réalisation Industrielles
    (Cofri)               |  | France                      |  | 100%             
|Clecel                                                                     |  | France                      |  | 100%             
|Technipnet BV                                                              |  | Netherlands                 |  | 100%             
|Technip Nouvelle-Calédonie                                                 |  | France (Overseas Territory) |  | 100%             
|Engineering Re                                                             |  | Switzerland                 |  | 100%             
|Technip Bolivar                                                            |  | Venezuela                   |  | 100%             
|Technip Oil & Gas BV                                                       |  | Netherlands                 |  | 100%             
|Technip-Coflexip Engineering Consultant (Shanghai) Private
    Limited Co. |  | China                       |  | 100%             
|Technipetrol Hellas S.A.                                                   |  | Greece                      |  | 99%              
|Technip Marine (M) Sdn. Bhd                                                |  | Malaysia                    |  | 90.40%           
|PT Technip Indonesia                                                       |  | Indonesia                   |  | 90%              
|Technip BioPharm                                                           |  | U.S.A.                      |  | 85%              
|Technip CIS                                                                |  | Russian Federation          |  | 70%              
|Technip Tianchen Engineering Company Limited                               |  | China Tianjin               |  | 60%              
|Technip Engineering (Thailand)                                             |  | Thailand                    |  | 49%              
|Technip Geoproduction (M)                                                  |  | Malaysia                    |  | 44.10%           
|Technip Angola Engenharia Limitada                                         |  | Angola                      |  | 60%              
|Technip Saudi Arabia                                                       |  | Saudi Arabia                |  | 40%              

F-65



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                                                                |  |                          |  |                  
|--------------------------------------------------------------- |  | ------------------------ |  | -----------------
|                                                                |  |                          |  | December 31, 2005
|Fully Consolidated Companies                                    |  | Country                  |  | % Control        
|                                                                |  |                          |  |                  
|Inversiones Dinsa / Estudios y Proyectos DITECH                 |  | Venezuela                |  | 20%              
|Technip Offshore International                                  |  | France                   |  | 100%             
|Flexi France                                                    |  | France                   |  | 100%             
|Middle East Projects International (Technip MEPI ex-Cofleximmo) |  | France                   |  | 100%             
|Technip Marine                                                  |  | France                   |  | 100%             
|Angoflex                                                        |  | France                   |  | 100%             
|Coflexip Développement                                          |  | France                   |  | 100%             
|Technip Offshore N.V.                                           |  | Netherlands              |  | 100%             
|Technip Offshore Contracting BV                                 |  | Netherlands              |  | 100%             
|Technip Offshore Holdings Ltd.                                  |  | United Kingdom           |  | 100%             
|Technip Offshore U.K. 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.                           |  | U.S.A.                   |  | 100%             
|R.J. Brown Deepwater Inc.                                       |  | U.S.A.                   |  | 100%             
|DUCO Inc.                                                       |  | U.S.A.                   |  | 100%             
|Coflexip Maritime Inc.                                          |  | U.S.A.                   |  | 100%             
|Technip Offshore Inc.                                           |  | U.S.A.                   |  | 100%             
|Technip Offshore Moorings Inc.                                  |  | U.S.A.                   |  | 100%             
|Genesis Oil and Gas Consultants Inc.                            |  | U.S.A.                   |  | 100%             
|Gulf Marine Fabricators Inc.                                    |  | U.S.A.                   |  | 100%             
|Perry Slingsby Systems Inc.                                     |  | U.S.A.                   |  | 100%             
|Technip Offshore Canada Limited                                 |  | Canada                   |  | 100%             
|Stena Offshore Jersey Ltd.                                      |  | Jersey, Channel Islands  |  | 100%             
|Coflexip Stena Offshore Mauritius Ltd.                          |  | Mauritius                |  | 100%             
|Technip Offshore Nigeria Ltd.                                   |  | Nigeria                  |  | 100%             
|Angoflex Ltda                                                   |  | Angola                   |  | 70%              
|Technip Maritime Overseas Ltd.                                  |  | Bahamas                  |  | 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.                                          |  | British Virgin Islands   |  | 100%             

F-66



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                                                           |  |                                     |  |                  
|---------------------------------------------------------- |  | ----------------------------------- |  | -----------------
|                                                           |  |                                     |  | December 31, 2005
|Fully Consolidated Companies                               |  | Country                             |  | % Control        
|                                                           |  |                                     |  |                  
|TPVI Ltd.                                                  |  | Virgin Islands, U.S.A.              |  | 100%             
|Sea Oil Marine Services Inc.                               |  | Cayman Islands, British West Indies |  | 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                               |  | 78.24%           
|Technip Offshore Finland OY                                |  | Finland                             |  | 100%             
|Coflexip Singapore Pte Ltd.                                |  | Singapore                           |  | 100%             

|                                                   |  |                      |  |                  
|-------------------------------------------------- |  | -------------------- |  | -----------------
|                                                   |  |                      |  | December 31, 2005
|Consolidated Companies Under Proportionate Method  |  | Country              |  | % Control        
|                                                   |  |                      |  |                  
|TSS Dalia SNC                                      |  | France               |  | 55%              
|Technip South Africa (Pty) Ltd.                    |  | South Africa         |  | 51%              
|Bechtel Technip Goro LLC                           |  | U.S.A.               |  | 50%              
|CTME FZCO (Qatargaz)                               |  | United Arab Emirates |  | 50%              
|SPF-TKP Omifpro SNC/SP-TKP Fertilizer              |  | France/Italy         |  | 50%              
|ProTek Germany GmbH (ex Technip Anlagenbau)        |  | Germany              |  | 50%              
|Technip India                                      |  | India                |  | 50%              
|UCI FZC (Upstream Constructors International FZCO) |  | United Arab Emirates |  | 50%              
|Dalia Floater Angola                               |  | France               |  | 55%              
|Tipiel                                             |  | Colombia             |  | 44.10%           
|Technip Zachry Saipem LNG LP (Freeport)            |  | U.S.A.               |  | 43%              
|CTEP FZCO                                          |  | United Arab Emirates |  | 40%              
|Consorcio Contrina SNC/CC(S)V                      |  | France/Venezuela     |  | 34.40%           
|Saibos Akogep SNC                                  |  | France               |  | 30%              
|TSKJ/TSKJ II/LNG (Madecos)                         |  | Portugal             |  | 25%              
|FSTP PTE Ltd. (P51/P52)                            |  | Singapore            |  | 25%              
|FSTP Brasil Ltda (P51/P52)                         |  | Brazil               |  | 25%              
|Yemgas FZCO                                        |  | United Arab Emirates |  | 33.33%           
|Yemen Project Coordination Services                |  | France               |  | 33.33%           
|Deep Oil Technology Inc.                           |  | U.S.A.               |  | 50%              
|Spars International Inc.                           |  | U.S.A.               |  | 50%              
|PI Rauma OY                                        |  | Finland              |  | 50%              

|                                           |  |         |  |                  
|------------------------------------------ |  | ------- |  | -----------------
|                                           |  |         |  | December 31, 2005
|Consolidated Companies Under Equity Method |  | Country |  | % Control        
|                                           |  |         |  |                  
|Technip KTI SpA                            |  | Italy   |  | 25%              
|Nargan                                     |  | Iran    |  | 20%              

F-67



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)





Note 36  Summary of Differences between
Accounting Principles Followed by Technip and U.S. GAAP






20-F






(a) Contract Bid Costs






(b) Foreign Currency
Translation / Derivative Instruments






(c) OCEANE Convertible
Bonds




F-68



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)










(d) Pension Obligations


Actuarial gains and losses








Minimum pension liabilities






Prior service cost








(e) Stock-Based
Compensation




F-69



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






(f) Employee Stock
Purchase Plan






(g) Coflexip Gain on
Disposition of Cal Dive Securities


20-year






(h) Goodwill
Amortization








F-70



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                    |  |                    |         |  |      |  |         | 
|------------------- |  | ------------------ | ------- |  | ---- |  | ------- | 
|                    |  | As of December 31, |        
|                    |  |                    |        
|                    |  | 2005               |         |  | 2004 | 
|                    |  |                    |         |  |      | 
|OFFSHORE SURF       |  |                    | 1,948.1 |  |      |  | 1,948.1 | 
|OFFSHORE FACILITIES |  |                    | 304.6   |  |      |  | 322.9   | 
|KTI/MDEU            |  |                    | 115.6   |  |      |  | 115.6   | 
|AUTRES              |  |                    | 8.6     |  |      |  | 8.3     | 
|                    |  |                    |         |  |      | 
|TOTAL               |  |                    | 2,376.9 |  |      |  | 2,394.9 | 
|                    |  |                    |         |  |      | 

(i) Acquisition of
Minority Interests of Coflexip in 2003








(j) Dry-Docking






Built-in




| |   |                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The FASB recently added a project on its agenda to eliminate the
    Accrue-in-Advance method of accounting regarding planned major
    maintenance.
|
| |  | The Built-in Overhaul method for major overhaul
    expenses is prevailing in the industry in which Technip operate.                              




(k) Territoriality
Contingencies




F-71



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






(l) Presentation of
Consolidated Financial Statements




Balance Sheet




| |   |                                    
| | - | -----------------------------------
| |  | Deferred Tax Assets and Liabilities



 




     




| |   |                                      
| | - | -------------------------------------
| |  | Foreign Currency Translation Reserves








| |   |                  
| | - | -----------------
| |  | Intangible Assets



|                                                                           |  |             |      | 
|-------------------------------------------------------------------------- |  | ----------- | ---- | 
|                                                                           |  | In millions |     
|                                                                           |  | of EUR      |     
|                                                                           |  |             |     
|2006                                                                       |  |             | 16.7 | 
|2007                                                                       |  |             | 11.2 | 
|2008                                                                       |  |             | 10.5 | 
|2009                                                                       |  |             | 9.7  | 
|2010                                                                       |  |             | 9.7  | 
|                                                                           |  |             |     
|Estimated Aggregate Amortization Expense for the five
    succeeding years |  |             | 57.8 | 
|                                                                           |  |             |     

F-72



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


Income Statement




| |   |                                        
| | - | ---------------------------------------
| |  | Financial Result from Ongoing Contracts







| |   |                                     
| | - | ------------------------------------
| |  | Employee Benefits  Financial Result



Cash Flow Statement


20-F,




|                             |  |                    |      |  |      |  |      | 
|---------------------------- |  | ------------------ | ---- |  | ---- |  | ---- | 
|                             |  | Years ended        |     
|                             |  | December 31,       |     
|                             |  |                    |     
|                             |  | 2005               |      |  | 2004 | 
|                             |  |                    |      |  |      | 
|                             |  | In millions of EUR |     
|Net Cash paid for income tax |  |                    | 19.9 |  |      |  | 52.7 | 
|Interest paid                |  |                    | 50.2 |  |      |  | 19.3 | 

Consolidation of Variable Interest Entities










| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In 2003, the Group 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 beneficiaries of the entity. It was
    consolidated under U.S. GAAP at 100% which resulted in an
    increase in our revenues of
    88.5 million
    in 2004 and of
    45.2 million
    in 2005.
|
| |  | In 2003, the Group 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 beneficiaries of                                                                                                                                                                                                                       

F-73



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |  |                                                                                                                                                                                       
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | these entities. They are consolidated under U.S. GAAP at
    100% which resulted in an increase in our revenues of
    38.2 million
    in 2004 and of
    64.9 million
    in 2005.




Note 37  Reconciliation to U.S. GAAP




(a) Net Income


|                                                                 |  |                    |       |   |      |  |       |  
|---------------------------------------------------------------- |  | ------------------ | ----- | - | ---- |  | ----- | -
|                                                                 |  | Years ended        |      
|                                                                 |  | December 31,       |      
|                                                                 |  |                    |      
|                                                                 |  | 2005               |       |   | 2004 | 
|                                                                 |  |                    |       |   |      | 
|                                                                 |  | In millions of EUR |      
|Net Income as reported in the Consolidated Income
    Statements |  |                    | 93.3  |   |      |  | 111.8 |  
|Contract Bid Costs                                               |  |                    | (15.7 | ) |      |  | 17.4  |  
|Foreign Currency Transactions/Derivative Instruments             |  |                    | (14.1 | ) |      |  | 5.0   |  
|OCEANE Convertible bonds                                         |  |                    | 16.6  |   |      |  |      |  
|Pension Obligations                                              |  |                    | (3.4  | ) |      |  | (2.2  | )
|Stock Based Compensation                                         |  |                    | 5.3   |   |      |  | 5.7   |  
|Employee Stock Purchase Plan                                     |  |                    |      |   |      |  | (9.2  | )
|Dry-Docking                                                      |  |                    | 16.3  |   |      |  | (4.1  | )
|Territoriality Contingencies                                     |  |                    |      |   |      |  | (35.4 | )
|Other                                                            |  |                    | (0.7  | ) |      |  | 5.9   |  
|                                                                 |  |                    |       |   |      | 
|Total U.S. GAAP Adjustments before Tax                           |  |                    | 97.6  |   |      |  | 94.9  |  
|Tax Effects of the above Adjustments                             |  |                    | (3.9  | ) |      |  | (11.6 | )
|                                                                 |  |                    |       |   |      | 
|Net Income in accordance with U.S. GAAP                          |  |                    | 93.7  |   |      |  | 83.3  |  
|                                                                 |  |                    |       |   |      | 

(b) Shareholders
Equity


|                                                                        |  |                    |         |   |      |  |         |  
|----------------------------------------------------------------------- |  | ------------------ | ------- | - | ---- |  | ------- | -
|                                                                        |  | As of December 31, |        
|                                                                        |  |                    |        
|                                                                        |  | 2005               |         |   | 2004 | 
|                                                                        |  |                    |         |   |      | 
|                                                                        |  | In millions of EUR |        
|Shareholders Equity as reported in the Consolidated
    Balance Sheets |  |                    | 1,953.7 |   |      |  | 1,851.6 |  
|Contract Bid Costs                                                      |  |                    | (15.1   | ) |      |  | 0.6     |  
|Foreign Currency Transactions/Derivative Instruments                    |  |                    |        |   |      |  | (24.7   | )
|OCEANE Convertible bonds                                                |  |                    | (16.2   | ) |      |  |        |  
|Pension Obligations                                                     |  |                    | 35.7    |   |      |  | 39.1    |  
|Minimum Liability Adjustments                                           |  |                    | (5.1    | ) |      |  | (7.2    | )
|Stock-Based Compensation                                                |  |                    | 0.2     |   |      |  | 0.2     |  
|Coflexip Gain on Disposition of Cal Dive Securities                     |  |                    | (26.6   | ) |      |  | (26.6   | )
|Goodwill Amortization                                                   |  |                    | 252.0   |   |      |  | 252.0   |  
|Acquisition of Minority Interests of Coflexip in 2003                   |  |                    | (25.0   | ) |      |  | (25.0   | )
|Dry-Docking                                                             |  |                    |        |   |      |  | (16.3   | )
|Other                                                                   |  |                    | 1.8     |   |      |  | 1.5     |  
|                                                                        |  |                    |         |   |      | 
|Total U.S. GAAP Adjustments before Tax                                  |  |                    | 2,155.4 |   |      |  | 2,045.2 |  
|Tax Effects of the above Adjustments                                    |  |                    | (8.1    | ) |      |  | 7.6     |  
|                                                                        |  |                    |         |   |      | 
|Shareholders Equity in accordance with
    U.S. GAAP                   |  |                    | 2,147.3 |   |      |  | 2,052.8 |  
|                                                                        |  |                    |         |   |      | 

F-74



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(c) Revenues


|                                            |  |                    |         |   |      |  |         |  
|------------------------------------------- |  | ------------------ | ------- | - | ---- |  | ------- | -
|                                            |  | Years ended        |        
|                                            |  | December 31,       |        
|                                            |  |                    |        
|                                            |  | 2005               |         |   | 2004 | 
|                                            |  |                    |         |   |      | 
|                                            |  | In millions of EUR |        
|Revenues in accordance with IFRS            |  |                    | 5,376.1 |   |      |  | 5,140.9 |  
|Contract Bid Costs                          |  |                    | (15.7   | ) |      |  | 8.7     |  
|Foreign Currency Transactions               |  |                    |        |   |      |  | (77.1   | )
|Financial Result from Ongoing Contracts     |  |                    | (31.4   | ) |      |  | (9.9    | )
|Consolidation of Variable Interest Entities |  |                    | 110.1   |   |      |  | 126.7   |  
|Discontinued Operations                     |  |                    | (29.0   | ) |      |  | (115.7  | )
|                                            |  |                    |         |   |      | 
|Revenues in accordance with U.S. GAAP       |  |                    | 5,410.1 |   |      |  | 5,073.6 |  
|                                            |  |                    |         |   |      | 

(d) Operating Income


|                                                        |  |                |       |   |      |  |       |  
|------------------------------------------------------- |  | -------------- | ----- | - | ---- |  | ----- | -
|                                                        |  | Years ended    |      
|                                                        |  | December 31,   |      
|                                                        |  |                |      
|                                                        |  | 2005           |       |   | 2004 | 
|                                                        |  |                |       |   |      | 
|                                                        |  | In millions of |      
|                                                        |  | EUR            |      
|Operating Income in accordance with IFRS                |  |                | 231.0 |   |      |  | 233.6 |  
|Contract Bid Costs                                      |  |                | (15.7 | ) |      |  | 17.4  |  
|Pension Obligations                                     |  |                | (3.4  | ) |      |  | (2.2  | )
|Employee Subscription to Capital                        |  |                |      |   |      |  | (9.2  | )
|Stock Based Compensation                                |  |                | 5.3   |   |      |  | 5.7   |  
|Consolidation of Variable Interest Entities             |  |                | (3.2  | ) |      |  | (0.2  | )
|Employee Benefits  Financial Result                    |  |                | (5.4  | ) |      |  | (4.9  | )
|Dry-Docking (Cumulative change in accounting principle) |  |                | 16.3  |   |      |  |      |  
|Discontinued Operations                                 |  |                | 9.8   |   |      |  | 4.0   |  
|Other                                                   |  |                | (0.7  | ) |      |  | 5.0   |  
|                                                        |  |                |       |   |      | 
|Operating Income in accordance with U.S. GAAP           |  |                | 234.0 |   |      |  | 249.2 |  
|                                                        |  |                |       |   |      | 




Note 38  Additional information


(a) Combined Information
Concerning Proportionate Consolidated Entities




|                                    |  |                |       |   |      |  |      | 
|----------------------------------- |  | -------------- | ----- | - | ---- |  | ---- | 
|                                    |  | Years ended    |      
|                                    |  | December 31,   |      
|                                    |  |                |      
|                                    |  | 2005           |       |   | 2004 | 
|                                    |  |                |       |   |      | 
|                                    |  | In millions of |      
|                                    |  | EUR            |      
|Cash Flow Data:                     |  |                |       |   |      |  |      | 
|Cash Flow from Operating Activities |  |                | 556.0 |   |      |  | 14.9 | 
|Cash Flow from Investing Activities |  |                | (0.8  | ) |      |  |     | 
|Cash Flow from Financing Activities |  |                | (0.1  | ) |      |  |     | 

F-75



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(b) Comprehensive
Income










|                                        |                                                      |                    |       |        |      |  |       |       |  
|--------------------------------------- | ---------------------------------------------------- | ------------------ | ----- | ------ | ---- |  | ----- | ----- | -
|                                        |                                                      | Years ended        |      
|                                        |                                                      | December 31,       |      
|                                        |                                                      |                    |      
|                                        |                                                      | 2005               |       |        | 2004 | 
|                                        |                                                      |                    |       |        |      | 
|                                        |                                                      | In millions of EUR |      
|Statement of Comprehensive Income       |                                                      |                    |       |        |      |  |       |      
|Net Income under IFRS                   |                                                      |                    | 93.3  |        |      |  | 111.8 |      
|Other comprehensive income, net of tax: |                                                      |                    |       |        |      |  |       |      
|                                        | Foreign currency transactions/Derivative instruments |                    |       | (117.5 | )    |  |       |      |  
|                                        | Cumulative translation adjustment                    |                    |       | 38.8   |      |  |       | (34.3 | )
|                                        |                                                      |                    |       |        |      | 
|Other comprehensive income              |                                                      |                    | (78.7 | )      |      |  | (34.3 | )    
|                                        |                                                      |                    |       |        |      | 
|Comprehensive income under IFRS         |                                                      |                    | 14.6  |        |      |  | 77.5  |      
|                                        |                                                      |                    |       |        |      | 

|                                                         |                                                      |              |       |       |      |  |       |       |  
|-------------------------------------------------------- | ---------------------------------------------------- | ------------ | ----- | ----- | ---- |  | ----- | ----- | -
|                                                         |                                                      | As of        |      
|                                                         |                                                      | December 31, |      
|                                                         |                                                      |              |      
|                                                         |                                                      | 2005         |       |       | 2004 | 
|                                                         |                                                      |              |       |       |      | 
|Statement of Accumulated Other Comprehensive Income      |                                                      |              |       |       |      |  |       |      
|Accumulated Other Comprehensive Income beginning of year |                                                      |              | (34.3 | )     |      |  |      |      
|                                                         | Foreign currency transactions/Derivative instruments |              |       | (76.3 | )    |  |       |      |  
|                                                         | Cumulative translation adjustment                    |              |       | 38.8  |      |  |       | (34.3 | )
|                                                         |                                                      |              |       |       |      | 
|Accumulated Other Comprehensive Income end of year       |                                                      |              | (71.8 | )     |      |  | (34.3 | )    
|                                                         |                                                      |              |       |       |      | 

F-76



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(c) Earnings per Share




|                                                     |  |                    |       |   |      |  |       |  
|---------------------------------------------------- |  | ------------------ | ----- | - | ---- |  | ----- | -
|                                                     |  | Years ended        |      
|                                                     |  | December 31,       |      
|                                                     |  |                    |      
|                                                     |  | 2005               |       |   | 2004 | 
|                                                     |  |                    |       |   |      | 
|                                                     |  | In millions of EUR |      
|U.S. GAAP                                            |  |                    |       |   |      |  |       |  
|Income from Continuing Operations                    |  |                    | 96.7  |   |      |  | 87.4  |  
|Discontinued Operations                              |  |                    | (13.6 | ) |      |  | (4.1  | )
|Cumulative Effect of Change in Accounting Principles |  |                    | 10.6  |   |      |  |      |  
|                                                     |  |                    |       |   |      | 
|                                                     |  |                    | 93.7  |   |      |  | 83.3  |  
|                                                     |  | In EUR            
|Basic Earnings per Share(1):                         |  |                    |       |   |      |  |       |  
|Income from Continuing Operations                    |  |                    | 1.01  |   |      |  | 0.92  |  
|Discontinued Operations                              |  |                    | (0.14 | ) |      |  | (0.04 | )
|Cumulative Effect of Change in Accounting Principles |  |                    | 0.11  |   |      |  |      |  
|                                                     |  |                    |       |   |      | 
|Net income                                           |  |                    | 0.98  |   |      |  | 0.88  |  
|                                                     |  | In EUR            
|Diluted Earnings per Share(1):                       |  |                    |       |   |      |  |       |  
|Income from Continuing Operations                    |  |                    | 0.99  |   |      |  | 0.91  |  
|Discontinued Operations                              |  |                    | (0.14 | ) |      |  | (0.04 | )
|Cumulative Effect of Change in Accounting Principles |  |                    | 0.11  |   |      |  |      |  
|                                                     |  |                    |       |   |      | 
|Net income                                           |  |                    | 0.96  |   |      |  | 0.87  |  



|                                                        |  |              |        |  |      |  |        | 
|------------------------------------------------------- |  | ------------ | ------ |  | ---- |  | ------ | 
|                                                        |  | December 31, |       
|                                                        |  |              |       
|                                                        |  | 2005         |        |  | 2004 | 
|                                                        |  |              |        |  |      | 
|                                                        |  | In thousands |       
|Weighted Average Basic Number of Shares under U.S. GAAP |  |              | 95,687 |  |      |  | 94,620 | 
|OCEANE Bonds(2)                                         |  |              |       |  |      |  |       | 
|Stock Options                                           |  |              | 1,530  |  |      |  | 1,336  | 
|                                                        |  |              |        |  |      | 
|Diluted Shares under U.S. GAAP                          |  |              | 97,217 |  |      |  | 95,956 | 
|                                                        |  |              |        |  |      | 






|    |                                                                                                                                                                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | On May 13, 2005, the Company decided a one-for-four stock
    split. All share and per share data under U.S. GAAP on the
    Form 20-F for periods prior to and including that date have
    been retroactively adjusted to reflect this stock split.                                                                                   
|   
|(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 14,405,644 and 14,876,444 (after adjustment
    following share-split) at December 31, 2005 and 2004,
    respectively.

(d) Stock Based
Compensation


Stock
Option Plans:




F-77



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)








 




|                                         |  |        |            |          |       |  |       |        |          |  |           |   |  |  |       | 
|---------------------------------------- |  | ------ | ---------- | -------- | ----- |  | ----- | ------ | -------- |  | --------- | - |  |  | ----- | 
|                                         |  | 2005   |            |          | 2004  | 
|                                         |  |        |            |          |       | 
|                                         |  |        |            | Weighted |       |  |       |        | Weighted | 
|                                         |  |        |            | average  |       |  |       |        | average  | 
|                                         |  | Shares |            |          | price |  |       | Shares |          |  | price     |  
|                                         |  |        |            |          |       |  |       |        |          |  |           |  
|Outstanding at the beginning of the year |  |        | 1,208,334  |          |       |  | 104.7 |        |          |  | 1,521,884 |   |  |  | 103.6 | 
|Oustanding after share-split             |  |        | 4,833,336  |          |       |  | 26.2  |        |          |  |           |   |  |  |       | 
|Options granted                          |  |        | 965,213    |          |       |  | 48.2  |        |          |  |          |   |  |  |      | 
|Options exercised                        |  |        | (2,519,040 | )        |       |  | 28.6  |        |          |  | (232,195  | ) |  |  | 96.1  | 
|Options forfeited                        |  |        | (119,720   | )        |       |  | 26.3  |        |          |  | (81,355   | ) |  |  | 109.8 | 
|                                         |  |        |            |          |       |  |       |        |          |  |           |  
|Outstanding at the end of the year       |  |        | 3,159,789  |          |       |  | 31.0  |        |          |  | 1,208,334 |   |  |  | 104.7 | 
|                                         |  |        |            |          |       |  |       |        |          |  |           |  
|Exercisable at the end of the year       |  |        | 2,173,776  |          |       |  | 31.0  |        |          |  | 554,254   |   |  |  | 104.7 | 
|                                         |  |        |            |          |       |  |       |        |          |  |           |  



|                            |  |          |        |             |              |  |           |            |           |  |             |             |  |              |     |  |  |  |         | 
|--------------------------- |  | -------- | ------ | ----------- | ------------ |  | --------- | ---------- | --------- |  | ----------- | ----------- |  | ------------ | --- |  |  |  | ------- | 
|                            |  |          |        | Number of   |              |  |           |            | Weighted  |  |             | Number of   | 
|                            |  |          |        | outstanding |              |  |           |            | average   |  |             | exercisable | 
|                            |  |          |        | options at  |              |  |           |            | remaining |  |             | options at  | 
|                            |  | Exercise |        |             | December 31, |  |           | Equivalent |           |  | contractual |             |  | December 31, |    
|                            |  | prices   |        |             | 2005         |  |           | in Shares  |           |  | life        |             |  | 2005         |    
|                            |  |          |        |             |              |  |           |            |           |  |             |             |  |              |    
|                            |  | In EUR   |        |             |              |  |           |            | In years  |  |             |            
|Plan 1999/2001 Second Layer |  |          | 143.24 |             |              |  | 166,404   |            |           |  | 665,616     |             |  |              | 3.0 |  |  |  | 166,404 | 
|Plan 2002                   |  |          | 71.95  |             |              |  | 377,040   |            |           |  | 1,508,160   |             |  |              | 2.9 |  |  |  | 377,040 | 
|Plan 2003                   |  |          | 73.98  |             |              |  | 5,200     |            |           |  | 20,800      |             |  |              | 3.4 |  |  |  |        | 
|Plan 2005                   |  |          | 48.18  |             |              |  | 965,213   |            |           |  | 965,213     |             |  |              | 6.0 |  |  |  |        | 
|                            |  |          |        |             |              |  |           |            |           |  |             |             |  |              |    
|Total                       |  |          |        |             |              |  | 1,513,857 |            |           |  | 3,159,789   |             |  |              | 3.9 |  |  |  | 543,444 | 
|                            |  |          |        |             |              |  |           |            |           |  |             |             |  |              |    



Coflexip
Stock Options:




F-78



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)





Employee
Stock Purchase Plans:






|                                       |  |      |   |  |      |  |           | 
|-------------------------------------- |  | ---- | - |  | ---- |  | --------- | 
|                                       |  | 2005 |   |  | 2004 | 
|                                       |  |      |   |  |      | 
|Number of shares                       |  |      |  |  |      |  | 331,780.0 | 
|Proceeds on sales (in millions of EUR) |  |      |  |  |      |  | 24.4      | 
|Average cost of treasury sales         |  |      |  |  |      |  | 73.6      | 






|                                                                                                                                                    |  |                    |      |   |      |  |       |  
|--------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------ | ---- | - | ---- |  | ----- | -
|                                                                                                                                                    |  | Year ended         |     
|                                                                                                                                                    |  | December 31,       |     
|                                                                                                                                                    |  |                    |     
|                                                                                                                                                    |  | 2005               |      |   | 2004 | 
|                                                                                                                                                    |  |                    |      |   |      | 
|                                                                                                                                                    |  | In millions of EUR |     
|Net Income under U.S. GAAP                                                                                                                          |  |                    | 93.7 |   |      |  | 83.3  |  
|As reported                                                                                                                                         |  |                    |      |   |      |  |       |  
|Include: Total stock based-employee compensation expense
    determined under APB25 for all awards net of related tax effects                       |  |                    | 0.1  |   |      |  | 9.3   |  
|Deduct: Total stock-based employee compensation expense
    determined under fair value based method for all awards, net of
    related tax effects |  |                    | (5.5 | ) |      |  | (15.9 | )
|                                                                                                                                                    |  |                    |      |   |      | 
|Pro Forma                                                                                                                                           |  |                    | 88.3 |   |      |  | 76.7  |  
|                                                                                                                                                    |  |                    |      |   |      | 
|Basic earning per share(*)                                                                                                                          |  |                    | 0.98 |   |      |  | 0.88  |  
|Diluted earning per share(*)                                                                                                                        |  |                    | 0.96 |   |      |  | 0.87  |  
|Pro forma basic earnings per share(*)                                                                                                               |  |                    | 0.92 |   |      |  | 0.81  |  
|Pro forma diluted earnings per share(*)                                                                                                             |  |                    | 0.91 |   |      |  | 0.80  |  






|    |                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(*) | On May 13, 2005, the Company decided a one-for-four share
    split. All share and per share data under U.S. GAAP have
    been retroactively adjusted to reflect this share split.





| |                                                                                 
| | --------------------------------------------------------------------------------
| | (e) Pension Plan and other Cost Retirement Benefits
    other than Pension Plans



F-79



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)










|                                                                                  |  |                  |       |       |          |  |       |      |  |  |      |   |  |  |      |  
|--------------------------------------------------------------------------------- |  | ---------------- | ----- | ----- | -------- |  | ----- | ---- |  |  | ---- | - |  |  | ---- | -
|                                                                                  |  |                  |       | Other |         
|                                                                                  |  | Pension Benefits |       |       | Benefits | 
|                                                                                  |  |                  |       |       |          | 
|                                                                                  |  | 2005             |       |       | 2004     |  |       | 2005 |  |  | 2004 |  
|                                                                                  |  |                  |       |       |          |  |       |      |  |  |      |  
|Change in Benefit Obligation:                                                     |  |                  |       |       |          |  |       |      |  |  |      |   |  |  |      |  
|Benefit Obligation at Beginning of Year                                           |  |                  | 169.9 |       |          |  | 184.2 |      |  |  | 1.1  |   |  |  | 0.8  |  
|Service Cost                                                                      |  |                  | 7.9   |       |          |  | 7.3   |      |  |  |     |   |  |  |     |  
|Interest Cost                                                                     |  |                  | 7.4   |       |          |  | 7.9   |      |  |  |     |   |  |  | 0.1  |  
|Plan Participants Contributions                                                   |  |                  | 0.3   |       |          |  |      |      |  |  |     |   |  |  |     |  
|Amendments                                                                        |  |                  |      |       |          |  | (2.9  | )    |  |  |     |   |  |  |     |  
|Acquisitions/ Disposals                                                           |  |                  | (0.6  | )     |          |  | (20.9 | )    |  |  |     |   |  |  |     |  
|Curtailments/ Settlements                                                         |  |                  | (1.2  | )     |          |  | 0.2   |      |  |  |     |   |  |  |     |  
|Actuarial (Gain)                                                                  |  |                  | 9.9   |       |          |  | 1.8   |      |  |  | 0.1  |   |  |  | 0.3  |  
|Benefits Paid                                                                     |  |                  | (6.5  | )     |          |  | (7.7  | )    |  |  | (0.1 | ) |  |  | (0.1 | )
|Other                                                                             |  |                  | 1.1   |       |          |  |      |      |  |  |     |   |  |  |     |  
|                                                                                  |  |                  |       |       |          |  |       |      |  |  |      |  
|Benefit Obligation at End of Year                                                 |  |                  | 188.2 |       |          |  | 169.9 |      |  |  | 1.1  |   |  |  | 1.1  |  
|                                                                                  |  |                  |       |       |          |  |       |      |  |  |      |  
|Change in Plan Assets:                                                            |  |                  |       |       |          |  |       |      |  |  |      |   |  |  |      |  
|Fair Value of Plan Assets at Beginning of Year                                    |  |                  | 68.8  |       |          |  | 59.3  |      |  |  |     |   |  |  |     |  
|Actual Return on Plan Assets                                                      |  |                  | 7.5   |       |          |  | 5.4   |      |  |  |     |   |  |  |     |  
|Group Contribution                                                                |  |                  | 3.1   |       |          |  | 7.8   |      |  |  |     |   |  |  |     |  
|Plan Participants Contributions                                                   |  |                  | 0.3   |       |          |  | 0.2   |      |  |  |     |   |  |  |     |  
|Benefits Paid                                                                     |  |                  | (2.8  | )     |          |  | (5.9  | )    |  |  |     |   |  |  |     |  
|Acquisitions and Disposals                                                        |  |                  |      |       |          |  | 2.2   |      |  |  |     |   |  |  |     |  
|Other                                                                             |  |                  | 0.4   |       |          |  | (0.2  | )    |  |  |     |   |  |  |     |  
|                                                                                  |  |                  |       |       |          |  |       |      |  |  |      |  
|Fair Value of Plan Assets at End of Year                                          |  |                  | 77.3  |       |          |  | 68.8  |      |  |  |     |   |  |  |     |  
|                                                                                  |  |                  |       |       |          |  |       |      |  |  |      |  
|Funded Status of the Plan                                                         |  |                  | 110.9 |       |          |  | 101.1 |      |  |  | 1.1  |   |  |  | 1.1  |  
|Unrecognized Actuarial (Gains) or Losses and Unrecognized Prior
    Service Costs |  |                  | (31.6 | )     |          |  | (27.8 | )    |  |  | (0.4 | ) |  |  | (0.4 | )
|                                                                                  |  |                  |       |       |          |  |       |      |  |  |      |  
|Accrued (Prepaid) Benefit Cost                                                    |  |                  | 79.3  |       |          |  | 73.3  |      |  |  | 0.7  |   |  |  | 0.7  |  
|                                                                                  |  |                  |       |       |          |  |       |      |  |  |      |  

F-80



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                                            |  |      |       |  |      |  |       | 
|----------------------------------------------------------- |  | ---- | ----- |  | ---- |  | ----- | 
|                                                            |  | 2005 |       |  | 2004 | 
|                                                            |  |      |       |  |      | 
|Projected Benefit Obligation                                |  |      | 111.2 |  |      |  | 103.4 | 
|Accumulated Benefit Obligation                              |  |      | 97.5  |  |      |  | 86.3  | 
|Fair Value of Plan Assets with ABO in excess of Plan Assets |  |      | 16.7  |  |      |  | 16.0  | 

|                                                                |  |                    |      |   |          |  |      |      |  |  |      |  |  |  |     | 
|--------------------------------------------------------------- |  | ------------------ | ---- | - | -------- |  | ---- | ---- |  |  | ---- |  |  |  | --- | 
|                                                                |  | Pension            |      |   | Other    | 
|                                                                |  | Benefits           |      |   | Benefits | 
|                                                                |  |                    |      |   |          | 
|                                                                |  | 2005               |      |   | 2004     |  |      | 2005 |  |  | 2004 | 
|                                                                |  |                    |      |   |          |  |      |      |  |  |      | 
|                                                                |  | In millions of EUR |     
|Annual Cost under U.S. GAAP:                                    |  |                    |      |   |          |  |      |      |  |  |      |  |  |  |     | 
|Service Cost                                                    |  |                    | 7.9  |   |          |  | 7.3  |      |  |  |     |  |  |  |    | 
|Expected Interest Cost                                          |  |                    | 7.4  |   |          |  | 7.9  |      |  |  | 0.1  |  |  |  | 0.1 | 
|Expected Return on Plan Assets                                  |  |                    | (3.8 | ) |          |  | (3.5 | )    |  |  |     |  |  |  |    | 
|Amortization of Actuarial Gain and Loss and Prior Service Costs |  |                    | 1.4  |   |          |  | 1.7  |      |  |  |     |  |  |  |    | 
|Effects of Settlements/ Curtailments                            |  |                    |     |   |          |  |     |      |  |  |     |  |  |  |    | 
|                                                                |  |                    |      |   |          |  |      |      |  |  |      | 
|Net Periodic Benefit Cost                                       |  |                    | 12.9 |   |          |  | 13.4 |      |  |  | 0.1  |  |  |  | 0.1 | 
|                                                                |  |                    |      |   |          |  |      |      |  |  |      | 



 




|                                          |  |                    |      |   |          |  |      |      |  |  |      |  |  |  |     | 
|----------------------------------------- |  | ------------------ | ---- | - | -------- |  | ---- | ---- |  |  | ---- |  |  |  | --- | 
|                                          |  | Pension            |      |   | Other    | 
|                                          |  | Benefits           |      |   | Benefits | 
|                                          |  |                    |      |   |          | 
|                                          |  | 2005               |      |   | 2004     |  |      | 2005 |  |  | 2004 | 
|                                          |  |                    |      |   |          |  |      |      |  |  |      | 
|                                          |  | In millions of EUR |     
|Accrued Benefit Liability (including MLA) |  |                    | 85.2 |   |          |  | 87.5 |      |  |  | 0.7  |  |  |  | 0.8 | 
|Prepaid Benefit Cost                      |  |                    |     |   |          |  | (6.1 | )    |  |  |     |  |  |  |    | 
|Minimum Liability Adjustment              |  |                    | (5.9 | ) |          |  | (8.1 | )    |  |  |     |  |  |  |    | 
|Included in Other Comprehensive Income    |  |                    | (5.1 | ) |          |  | (7.2 | )    |  |  |     |  |  |  |    | 
|Included in Intangible Assets             |  |                    | (0.8 | ) |          |  | (0.9 | )    |  |  |     |  |  |  |    | 
|                                          |  |                    |      |   |          |  |      |      |  |  |      | 
|Net Amount Recognized under U.S. GAAP     |  |                    | 79.3 |   |          |  | 73.3 |      |  |  | 0.7  |  |  |  | 0.8 | 
|                                          |  |                    |      |   |          |  |      |      |  |  |      | 

Pension Benefits to Be Paid in the Following Years


|                 |  |                    |     |  |      |  |     |      |  |  |      |  |  |      |     |  |            |  |      |  |  |  |      | 
|---------------- |  | ------------------ | --- |  | ---- |  | --- | ---- |  |  | ---- |  |  | ---- | --- |  | ---------- |  | ---- |  |  |  | ---- | 
|                 |  | 2006               |     |  | 2007 |  |     | 2008 |  |  | 2009 |  |  | 2010 |     |  | Thereafter | 
|                 |  |                    |     |  |      |  |     |      |  |  |      |  |  |      |     |  |            | 
|                 |  | In millions of EUR |    
|Pension Benefits |  |                    | 5.7 |  |      |  | 6.4 |      |  |  | 7.1  |  |  |      | 8.3 |  |            |  | 10.7 |  |  |  | 60.9 | 




F-81



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                                                                                                                                |  |                    |      |   |          |  |      |      |  |  |      |  |  |  |     | 
|----------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------ | ---- | - | -------- |  | ---- | ---- |  |  | ---- |  |  |  | --- | 
|                                                                                                                                                |  | Pension            |      |   | Other    | 
|                                                                                                                                                |  | Benefits           |      |   | Benefits | 
|                                                                                                                                                |  |                    |      |   |          | 
|                                                                                                                                                |  | 2005               |      |   | 2004     |  |      | 2005 |  |  | 2004 | 
|                                                                                                                                                |  |                    |      |   |          |  |      |      |  |  |      | 
|                                                                                                                                                |  | In millions of EUR |     
|Net Amount Accrued for under U.S. GAAP (before Prepaid
    Costs)                                                                               |  |                    | 85.2 |   |          |  | 87.5 |      |  |  | 0.7  |  |  |  | 0.7 | 
|Excess Funding of Plans Recognized in Income only when Paid Back
    to the Company                                                             |  |                    |     |   |          |  | (6.1 | )    |  |  |     |  |  |  |    | 
|Impact of Transition Obligation of Prior Service Cost and of
    Actuarial Gains Recognized with a Different Timing under Local
    Regulations |  |                    |     |   |          |  | (1.6 | )    |  |  |     |  |  |  |    | 
|Minimum Liability Adjustment                                                                                                                    |  |                    | (5.9 | ) |          |  | (8.1 | )    |  |  |     |  |  |  |    | 
|Included in Other Comprehensive Income                                                                                                          |  |                    | (5.1 | ) |          |  | (7.2 | )    |  |  |     |  |  |  |    | 
|Included in Intangible Assets                                                                                                                   |  |                    | (0.8 | ) |          |  | (0.9 | )    |  |  |     |  |  |  |    | 
|                                                                                                                                                |  |                    |      |   |          |  |      |      |  |  |      | 
|Net Amount Accrued for in Consolidated Financial
    Statements                                                                                 |  |                    | 79.3 |   |          |  | 71.7 |      |  |  | 0.7  |  |  |  | 0.7 | 
|                                                                                                                                                |  |                    |      |   |          |  |      |      |  |  |      | 

Defined contribution pension plan:





(f) Guarantees






F-82



---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(g) Income before Tax
Expense and Tax Expense




|                          |  |                          |      |  |         |  |       |       |  |  |            |   |  |         |      |  |       |  |       |   |  |  |       |  
|------------------------- |  | ------------------------ | ---- |  | ------- |  | ----- | ----- |  |  | ---------- | - |  | ------- | ---- |  | ----- |  | ----- | - |  |  | ----- | -
|                          |  | Years ended December 31, |     
|                          |  |                          |     
|                          |  | 2005                     |      |  | 2004    | 
|                          |  |                          |      |  |         | 
|                          |  | Domestical               |      |  | Foreign |  |       | Total |  |  | Domestical |   |  | Foreign |      |  | Total | 
|                          |  |                          |      |  |         |  |       |       |  |  |            |   |  |         |      |  |       | 
|                          |  | In millions of EUR       |     
|Income before Tax Expense |  |                          | 22.8 |  |         |  | 120.7 |       |  |  | 143.5      |   |  |         | 8.3  |  |       |  | 160.1 |   |  |  | 168.4 |  
|Income Tax Expense        |  |                          | 4.6  |  |         |  | (48.1 | )     |  |  | (43.5      | ) |  |         | 15.5 |  |       |  | (69.7 | ) |  |  | (54.2 | )

(h) Tax Loss
Carry-Forwards


 





(i) Segment Information




|                  |  |                    |       |  |         |  |       |         |  |  |       |  |  |            |       |  |         |  |       |         |  |  |       |  |  |  |       |  |  |  |       | 
|----------------- |  | ------------------ | ----- |  | ------- |  | ----- | ------- |  |  | ----- |  |  | ---------- | ----- |  | ------- |  | ----- | ------- |  |  | ----- |  |  |  | ----- |  |  |  | ----- | 
|                  |  | As of December 31, |      
|                  |  |                    |      
|                  |  | 2005               |       |  | 2004    | 
|                  |  |                    |       |  |         | 
|                  |  | Domestical         |       |  | Foreign |  |       | Vessels |  |  | Total |  |  | Domestical |       |  | Foreign |  |       | Vessels |  |  | Total | 
|                  |  |                    |       |  |         |  |       |         |  |  |       |  |  |            |       |  |         |  |       |         |  |  |       | 
|                  |  | In millions of EUR |      
|Long-Lived Assets |  |                    | 147.5 |  |         |  | 312.1 |         |  |  | 386.7 |  |  |            | 846.3 |  |         |  | 139.1 |         |  |  | 266.7 |  |  |  | 408.5 |  |  |  | 814.3 | 

(j) Discontinued
Operations




|                                    |  |                    |      |   |             |  |       |          |  |  |             |   |  |  |        |  
|----------------------------------- |  | ------------------ | ---- | - | ----------- |  | ----- | -------- |  |  | ----------- | - |  |  | ------ | -
|                                    |  | 2005               |      |   | 2004        | 
|                                    |  |                    |      |   |             | 
|                                    |  | Technip            |      |   | Gulf Marine |  |       | Technip  |  |  | Gulf Marine |  
|                                    |  | BioPharm           |      |   | Fabricators |  |       | BioPharm |  |  | Fabricators |  
|                                    |  |                    |      |   |             |  |       |          |  |  |             |  
|                                    |  | In millions of EUR |     
|Revenues                            |  |                    | 3.1  |   |             |  | 27.1  |          |  |  | 1.4         |   |  |  | 114.3  |  
|Cost of Sales                       |  |                    | (7.9 | ) |             |  | (30.0 | )        |  |  | (1.4        | ) |  |  | (108.7 | )
|                                    |  |                    |      |   |             |  |       |          |  |  |             |  
|Gross Margin                        |  |                    | (4.8 | ) |             |  | (2.9  | )        |  |  |            |   |  |  | 5.6    |  
|Other Operating Income and Expenses |  |                    | (2.6 | ) |             |  | (4.5  | )        |  |  | (5.0        | ) |  |  | (4.6   | )
|                                    |  |                    |      |   |             |  |       |          |  |  |             |  
|Income/(Loss) from Operations       |  |                    | (7.4 | ) |             |  | (7.4  | )        |  |  | (5.0        | ) |  |  | 1.0    |  
|                                    |  |                    |      |   |             |  |       |          |  |  |             |  
|Financial Income                    |  |                    |     |   |             |  |      |          |  |  |            |   |  |  |       |  
|Financial Expenses                  |  |                    | (0.4 | ) |             |  | (0.3  | )        |  |  | (0.1        | ) |  |  | (0.6   | )
|                                    |  |                    |      |   |             |  |       |          |  |  |             |  
|Income/(Loss) before Tax            |  |                    | (7.8 | ) |             |  | (7.7  | )        |  |  | (5.1        | ) |  |  | 0.4    |  
|                                    |  |                    |      |   |             |  |       |          |  |  |             |  
|Income Tax Expense                  |  |                    | 1.9  |   |             |  |      |          |  |  | 0.6         |   |  |  |       |  
|                                    |  |                    |      |   |             |  |       |          |  |  |             |  
|Net Income/(Loss)                   |  |                    | (5.9 | ) |             |  | (7.7  | )        |  |  | (4.5        | ) |  |  | 0.4    |  
|                                    |  |                    |      |   |             |  |       |          |  |  |             |  

F-83



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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(k) Related Parties


   


(l) Recently issued
Accounting Pronouncements


Inventory Costs








Non Monetary Asset Exchange








Share-Based Payments








F-84



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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Accounting Changes and Error Corrections








Accounting by an Investor for its Proportionate Share of
Other Comprehensive Income of an Investee Accounted for under
the Equity Method






(m) Subsequent Events








F-85



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##### Table of Contents






TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS


(INFORMATION RELEASED ON OCTOBER 31, 2005)


The following release relates to the 2004 financial
information regarding the transition to IFRS. The analyses
performed by Technip while closing the consolidated accounts
under IFRS as of December 31, 2005 led the Group to make
insignificant reclassifications on this information. See
Note 1A. (a) of the consolidated financial
statements as of December 31, 2005.





1) Framework for Publication










| |   |                                                                                                
| | - | -----------------------------------------------------------------------------------------------
| | - | Reconciliation of the consolidated equity statement as at
    transition date (January 1, 2004)
|
| | - | Reconciliation of the consolidated profit and loss statement as
    at December 31, 2004       
|
| | - | Reconciliation of the consolidated balance sheet statement as at
    December 31, 2004         





| |   |                                                                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | The IFRS and interpretations which application is mandatory for
    the financial year ended December 31, 2005, as they are
    known at this date;                                                                                                                                   
|
| | - | The principles resulting from Technip anticipated resolution of
    some technical questions and projects currently under discussion
    by the IASB and IFRIC, which could be applicable in the
    publication of its consolidated financial statements for 2005
    financial year;
|
| | - | The options and exemptions that the Group has applied and that
    will be used very likely in the preparation of its first IFRS
    consolidated financial statements for the 2005 financial year.                                                                                   








2) Organization of the IFRS Standards Transition
Project






| |                                                                                                                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | a) Stage 1: Key differences between IFRS and
    French accounting standards have been identified through a study
    launched within the Group in 2003. Summary findings have been
    submitted to Technips Audit Committee.

F-86



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##### Table of Contents



TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
STANDARDS  (Continued)




| |                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------
| | b) Stage 2: The main steps leading to the
    preparation of the IFRS opening balance sheet as of
    January 1, 2004 are listed below:



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | During 2004, the Groups finance division finalized its
    IFRS accounting options and submitted scenarios in successive
    Audit Committee meetings to assess the impact on equity of IFRS
    as at January 1, 2004.                                                                                                                                                                                       
|
| | - | Subsidiaries were informed of the IFRS accounting options chosen
    by the Group as well as the main impacts they would have. They
    were required to identify and report the estimated impacts that
    IFRS would have on their accounts. The Group then compiled those
    changes in a re-written accounting principles manual that was
    sent to all subsidiaries and reviewed by statutory auditors.
|
| | - | On February 2, 2005, Technip issued a press release which
    provided preliminary unaudited estimates about the Groups
    opening balance sheet under IFRS as of January 1, 2004 as
    well as the expected IFRS impacts on the Groups 2005
    consolidated accounts.                                                                                                                                    
|
| | - | Opening balance sheet and shareholders equity
    reconciliations as of January 1, 2004 under IFRS were made
    public on April 14, 2005.                                                                                                                                                                                                                                                                    



| |                                                                                                         
| | --------------------------------------------------------------------------------------------------------
| | c) Stage 3: Presentation of 2004 Group
    consolidated accounts and 2005 quarterly accounts under IFRS:



| |   |                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | Our first quarter 2005 un-audited results were compiled and
    published pursuant to IFRS and were compared to the 2004 first
    quarter figures, which were restated according to IFRS. That
    restatement was not audited either.
|
| | - | The current publication includes the restated 2004 financial
    statements, which are compliant with IFRS.                                                                                                                            




3) Introduction to the Norms and Interpretations Applied
for these first Financial Information under IFRS




| |                                                               
| | --------------------------------------------------------------
| | (a) Presentation of the Standards within Technips
    Context





| |   |                                                                                                                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | The IFRS framework and interpretations, which application is
    mandatory as of December 31, 2005, as known at date;                                                                                                                                                                                                            
|
| | - | The technical matters and ongoing projects currently discussed
    by the IASB (International Accounting Standards Board) and the
    IFRIC (International Financial Reporting Interpretation
    Committee), which have been foreseen by the Group and which
    could be applied for the release of 2005 consolidated accounts;
|
| | - | As mentioned in paragraph 6.3) (b) a), the options
    taken and the exemptions used by the Group for its first IFRS
    consolidated accounts in 2005;                                                                                                                                                                          
|
| | - | As mentioned in paragraph 6.3) (b) b), the option
    taken by the Group to apply the IAS 32 and 39 only on
    January 1, 2005, as allowed by the regulators.                                                                                                                                                                   



| |                                 
| | --------------------------------
| | (b) First-Time Adopters Options

A






| |   |                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------
| | - | Business combinations (IFRS 3): Technip has decided not to
    restate business combinations prior to January 1, 2004.

F-87



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##### Table of Contents



TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
STANDARDS  (Continued)




| |   |                                                                                                                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | Fair value or revaluation as a deemed cost (IAS 16): Technip has
    decided not to record the fair value or revaluation of its
    assets as a deemed cost. On the other hand, Technip has analyzed
    and occasionally revised the depreciation periods and residual
    values of its main assets.
|
| | - | Employee benefits (IAS 19): Technip has decided to book against
    shareholders equity unrecorded actuarial variances at the
    IFRS transition date and to subsequently apply the
    corridor method to any actuarial variances generated
    thereafter.                                      
|
| | - | Cumulative translation adjustments (IFRS 1): as of
    January 1, 2004, Technip has decided to assume that the
    amount of the cumulative translation adjustments for all its
    activities abroad was nil.                                                                                        
|
| | - | Share based payments (IFRS 2): Technip has applied IFRS
    retroactively to all stock options attributed before
    January 1, 2004, including the ones granted after
    November 7, 2002.                                                                                                          
|
| | - | Technip has taken the option to apply IFRS 4 to insurance
    contracts as of January 1, 2004. The application of this
    standard does not impact Technips accounts as of
    January 1, 2004 and December 31, 2004.                                                                               
|
| | - | For the other standards, the restatement of assets and
    liabilities as of January 1, 2004 was performed
    retrospectively as though these standards had always been
    applied.                                                                                                                 

B)






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | Accounting for convertible bond OCEANE in accordance with the
    split accounting method (splitting the bond into a separate debt
    and a shareholders equity component), which results in an
    increase in shareholders equity estimated at about
    35 million
    as of January 1, 2005. This accounting treatment should
    generate an additional annual financial expense of around
    17 million
    in both 2005 and 2006, without any cash impact.
|
| | - | Marking to market financial instruments (mainly the Groups
    foreign exchange risk hedging contracts) and recording incurred
    currency translation adjustments in the balance sheet and profit
    and loss statement.                                                                                                                                                                                                                                           






| |                                                  
| | -------------------------------------------------
| | (c) Main Changes in Technip Accounting Principles



A)






B)






F-88



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##### Table of Contents



TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
STANDARDS  (Continued)


















| |                                                                                                                                                                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) The total costs incurred together with the recognized
    gross margin under the Groups accounting methods (less
    provisions for foreseeable losses on contract when applicable),
    and                                                                                       
|
| | (ii) The progress billings under the contract terms limited
    to work performed as measured by the revenue recognized under
    the Groups accounting methods is the Due from
    Clients item or Due to Clients depending on
    whether the difference is positive or negative.

C)






| |   |                                                                                                                                                                                             
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | The values used as a basis of calculation for depreciation
    amounts have been reviewed and where necessary written off, if a
    residual value remained at the end of their useful life.
|
| | - | Analysis of asset use periods has led in some cases to reviewing
    the depreciation schedules according to the useful lives of the
    main components.                                   







D)






F-89



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##### Table of Contents



TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
STANDARDS  (Continued)




E)










F)







4) Financial Statements as of January 1, 2004







| |                                                                       
| | ----------------------------------------------------------------------
| | (a) Shareholders Equity Reconciliation Table:
    French GAAP to IFRS

|                                     |  |                     |         |     |       |  |       |        |  |     |             |   |     |        |           |     |        |       |       |                |      |  |              |   |  |            |      |   |  |  |       |   |  |  |         |  
|------------------------------------ |  | ------------------- | ------- | --- | ----- |  | ----- | ------ |  | --- | ----------- | - | --- | ------ | --------- | --- | ------ | ----- | ----- | -------------- | ---- |  | ------------ | - |  | ---------- | ---- | - |  |  | ----- | - |  |  | ------- | -
|                                     |  | French              |         |     |       |  |       |        |  |     |             |   |     |        | Other     |     |        |       |       |               
|                                     |  | GAAP                |         |     |       |  |       |        |  |     |             |   |     |        | Standards |     |        | Total |       |                | IFRS | 
|Notes                                |  | 12/31/2003          |         |     | IAS 1 |  |       | IAS 11 |  |     | IAS 2/16/37 |   |     | IAS 17 |           |     | IAS 19 |       |       | (incl. IAS 12) |      |  | Restatements |   |  | 01/01/2004 |     
|                                     |  |                     |         |     |       |  |       |        |  |     |             |   |     |        |           |     |        |       |       |                |      |  |              |   |  |            |     
|                                     |  |                     |         | (a) |       |  | (b)   |        |  | (c) |             |   | (d) |        |           | (e) |        |       | (g)   |                |      |  |              |  
|                                     |  | In millions of Euro |        
|Consolidated Shareholders Equity    |  |                     |         |     |       |  |       |        |  |     |             |   |     |        |           |     |        |       |       |                |      |  |              |   |  |            |      |   |  |  |       |   |  |  |         |  
|Common Stock                         |  |                     | 72.4    |     |       |  |      |        |  |     |            |   |     |        |          |     |        |       |      |                |      |  |             |   |  |            |     |   |  |  |      |   |  |  | 72.4    |  
|Paid-in-Surplus                      |  |                     | 1,250.4 |     |       |  |      |        |  |     |            |   |     |        |          |     |        |       |      |                |      |  |             |   |  |            | (0.1 | ) |  |  | (0.1  | ) |  |  | 1,250.3 |  
|Treasury Shares                      |  |                     | (9.7    | )   |       |  |      |        |  |     |            |   |     |        |          |     |        |       |      |                |      |  |             |   |  |            |     |   |  |  |      |   |  |  | (9.7    | )
|Foreign Currency Translation Reserve |  |                     | (1.9    | )   |       |  |      |        |  |     |            |   |     |        |          |     |        |       |      |                |      |  |             |   |  |            | 1.9  |   |  |  | 1.9   |   |  |  |        |  
|Retained Earnings                    |  |                     | 646.5   |     |       |  | (13.7 | )      |  |     | (13.3       | ) |     |        | 23.8      |     |        |       | (20.3 | )              |      |  | (29.3        | ) |  |            | 0.5  |   |  |  | (52.3 | ) |  |  | 594.2   |  
|Net Income/(Loss)                    |  |                     | (19.7   | )   |       |  |      |        |  |     |            |   |     |        |          |     |        |       |      |                |      |  |             |   |  |            |     |   |  |  |      |   |  |  | (19.7   | )
|                                     |  |                     |         |     |       |  |       |        |  |     |             |   |     |        |           |     |        |       |       |                |      |  |              |   |  |            |     
|Shareholders Equity                 |  |                     | 1,938.0 |     |       |  | (13.7 | )      |  |     | (13.3       | ) |     |        | 23.8      |     |        |       | (20.3 | )              |      |  | (29.3        | ) |  |            | 2.3  |   |  |  | (50.5 | ) |  |  | 1,887.5 |  
|                                     |  |                     |         |     |       |  |       |        |  |     |             |   |     |        |           |     |        |       |       |                |      |  |              |   |  |            |     
|Minority Interests                   |  |                     | 9.2     |     |       |  |      |        |  |     |            |   |     |        |          |     |        |       |      |                |      |  |             |   |  |            | 0.3  |   |  |  | 0.3   |   |  |  | 9.5     |  

F-90



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##### Table of Contents



TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
STANDARDS  (Continued)




| |                                                                
| | ---------------------------------------------------------------
| | (b) Balance Sheet Reconciliation Table: French GAAP to
    IFRS

|                                                  |  |                     |          |     |       |  |       |        |  |     |             |   |     |        |      |     |           |  |     |        |  |     |                |   |  |              |        |   |            |  |       |   |  |  |          |   |  |  |         | 
|------------------------------------------------- |  | ------------------- | -------- | --- | ----- |  | ----- | ------ |  | --- | ----------- | - | --- | ------ | ---- | --- | --------- |  | --- | ------ |  | --- | -------------- | - |  | ------------ | ------ | - | ---------- |  | ----- | - |  |  | -------- | - |  |  | ------- | 
|                                                  |  | French              |          |     |       |  |       |        |  |     |             |   |     |        |      |     | Other     |  |     |        |  |    
|                                                  |  | GAAP                |          |     |       |  |       |        |  |     |             |   |     |        |      |     | Standards |  |     | Total  |  |     | IFRS           |  
|Notes                                             |  | 12/31/2003          |          |     | IAS 1 |  |       | IAS 11 |  |     | IAS 2/16/37 |   |     | IAS 17 |      |     | IAS 19    |  |     | IFRS 5 |  |     | (incl. IAS 12) |   |  | Restatements |        |   | 01/01/2004 | 
|                                                  |  |                     |          |     |       |  |       |        |  |     |             |   |     |        |      |     |           |  |     |        |  |     |                |   |  |              |        |   |            | 
|                                                  |  |                     |          | (a) |       |  | (b)   |        |  | (c) |             |   | (d) |        |      | (e) |           |  | (f) |        |  | (g) |                |   |  |              |       
|                                                  |  | In millions of Euro |         
|Non-Current Assets                                |  |                     |          |     |       |  |       |        |  |     |             |   |     |        |      |     |           |  |     |        |  |     |                |   |  |              |        |   |            |  |       |   |  |  |          |   |  |  |         | 
|Intangible Assets, Net                            |  |                     | 2,497.0  |     |       |  | (0.8  | )      |  |     |            |   |     |        | 0.1  |     |           |  |    |        |  |     |               |   |  |              | (4.0   | ) |            |  | (4.6  | ) |  |  | (9.3     | ) |  |  | 2,487.7 | 
|Property, Plant and Equipment, Net                |  |                     | 738.5    |     |       |  |      |        |  |     |            |   |     |        | 20.3 |     |           |  |    |        |  |     |               |   |  |              | (18.1  | ) |            |  | 0.1   |   |  |  | 2.3      |   |  |  | 740.8   | 
|Equity Affiliates                                 |  |                     | 2.1      |     |       |  |      |        |  |     |            |   |     |        |     |     |           |  |    |        |  |     |               |   |  |              |       |   |            |  | 4.4   |   |  |  | 4.4      |   |  |  | 6.5     | 
|Other Financial Assets                            |  |                     | 8.4      |     |       |  | (3.0  | )      |  |     |            |   |     |        |     |     |           |  |    |        |  |     |               |   |  |              | (0.5   | ) |            |  | (0.2  | ) |  |  | (3.7     | ) |  |  | 4.7     | 
|Deferred Tax Assets                               |  |                     | 120.1    |     |       |  | 20.9  |        |  |     |            |   |     |        |     |     |           |  |    |        |  |     | 13.9           |   |  |              |       |   |            |  | 10.0  |   |  |  | 44.8     |   |  |  | 164.9   | 
|Assets Held for Sale                              |  |                     |         |     |       |  |      |        |  |     |            |   |     |        |     |     |           |  |    |        |  |     | (3.3           | ) |  |              | 131.0  |   |            |  |      |   |  |  | 127.7    |   |  |  | 127.7   | 
|Non-Current Assets                                |  |                     | 3,366.1  |     |       |  | 17.1  |        |  |     |            |   |     |        | 20.4 |     |           |  |    |        |  |     | 10.6           |   |  |              | 108.4  |   |            |  | 9.7   |   |  |  | 166.2    |   |  |  | 3,532.3 | 
|                                                 
|Current Assets                                    |  |                     |          |     |       |  |       |        |  |     |             |   |     |        |      |     |           |  |     |        |  |     |                |   |  |              |        |   |            |  |       |   |  |  |          |   |  |  |         | 
|Inventories, Net                                  |  |                     | 73.6     |     |       |  |      |        |  |     | (5.3        | ) |     |        | (2.7 | )   |           |  |    |        |  |     |               |   |  |              | (0.7   | ) |            |  |      |   |  |  | (8.7     | ) |  |  | 64.9    | 
|Construction Contracts  Amounts Due from Clients |  |                     | 6,368.2  |     |       |  |      |        |  |     | (6,014.7    | ) |     |        |     |     |           |  |    |        |  |     |               |   |  |              | (36.4  | ) |            |  |      |   |  |  | (6,051.1 | ) |  |  | 317.1   | 
|Advances to Suppliers                             |  |                     | 244.6    |     |       |  |      |        |  |     |            |   |     |        |     |     |           |  |    |        |  |     |               |   |  |              |       |   |            |  | (2.3  | ) |  |  | (2.3     | ) |  |  | 242.3   | 
|Accounts Receivable, Net                          |  |                     | 755.6    |     |       |  |      |        |  |     | (33.5       | ) |     |        |     |     |           |  |    |        |  |     |               |   |  |              | (40.8  | ) |            |  | 0.1   |   |  |  | (74.2    | ) |  |  | 681.4   | 
|Current Income Tax                                |  |                     | 39.8     |     |       |  |      |        |  |     |            |   |     |        |     |     |           |  |    |        |  |     |               |   |  |              |        |   |            |  | 46.3  |   |  |  | 46.3     |   |  |  | 86.1    | 
|Other Current Assets, Net                         |  |                     | 267.8    |     |       |  | (89.7 | )      |  |     |            |   |     |        |     |     |           |  |    |        |  |     |               |   |  |              | (6.4   | ) |            |  | (42.0 | ) |  |  | (138.1   | ) |  |  | 129.7   | 
|Cash and Cash                                     |  |                     | 892.4    |     |       |  |      |        |  |     |            |   |     |        |     |     |           |  |    |        |  |     |               |   |  |              | (24.1  | ) |            |  |      |   |  |  | (24.1    | ) |  |  | 868.3   | 
|Current Assets                                    |  |                     | 8,642.0  |     |       |  | (89.7 | )      |  |     | (6,053.5    | ) |     |        | (2.7 | )   |           |  |    |        |  |     |               |   |  |              | (108.4 | ) |            |  | 2.1   |   |  |  | (6,252.2 | ) |  |  | 2,389.8 | 
|                                                  |  |                     |          |     |       |  |       |        |  |     |             |   |     |        |      |     |           |  |     |        |  |     |                |   |  |              |        |   |            | 
|TOTAL ASSETS                                      |  |                     | 12,008.1 |     |       |  | (72.6 | )      |  |     | (6,053.5    | ) |     |        | 17.7 |     |           |  |    |        |  |     | 10.6           |   |  |              |       |   |            |  | 11.8  |   |  |  | (6,086.0 | ) |  |  | 5,922.1 | 
|                                                  |  |                     |          |     |       |  |       |        |  |     |             |   |     |        |      |     |           |  |     |        |  |     |                |   |  |              |        |   |            | 

F-91



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##### Table of Contents



TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
STANDARDS  (Continued)


|                                           |  |                     |          |     |       |  |       |        |  |     |             |   |     |        |      |     |           |  |       |        |  |     |                |   |  |              |       |   |            |  |      |   |  |  |          |   |  |  |         |  
|------------------------------------------ |  | ------------------- | -------- | --- | ----- |  | ----- | ------ |  | --- | ----------- | - | --- | ------ | ---- | --- | --------- |  | ----- | ------ |  | --- | -------------- | - |  | ------------ | ----- | - | ---------- |  | ---- | - |  |  | -------- | - |  |  | ------- | -
|                                           |  | French              |          |     |       |  |       |        |  |     |             |   |     |        |      |     | Other     |  |       |        |  |    
|                                           |  | GAAP                |          |     |       |  |       |        |  |     |             |   |     |        |      |     | Standards |  |       | Total  |  |     | IFRS           |  
|Notes                                      |  | 12/31/2003          |          |     | IAS 1 |  |       | IAS 11 |  |     | IAS 2/16/37 |   |     | IAS 17 |      |     | IAS 19    |  |       | IFRS 5 |  |     | (incl. IAS 12) |   |  | Restatements |       |   | 01/01/2004 | 
|                                           |  |                     |          |     |       |  |       |        |  |     |             |   |     |        |      |     |           |  |       |        |  |     |                |   |  |              |       |   |            | 
|                                           |  |                     |          | (a) |       |  | (b)   |        |  | (c) |             |   | (d) |        |      | (e) |           |  | (f)   |        |  | (g) |                |   |  |              |      
|                                           |  | In millions of Euro |         
|Shareholders Equity                       |  |                     |          |     |       |  |       |        |  |     |             |   |     |        |      |     |           |  |       |        |  |     |                |   |  |              |       |   |            |  |      |   |  |  |          |   |  |  |         |  
|Common Stock                               |  |                     | 72.4     |     |       |  |      |        |  |     |            |   |     |        |     |     |           |  |      |        |  |     |               |   |  |              |      |   |            |  |     |   |  |  |         |   |  |  | 72.4    |  
|Paid-in-Surplus                            |  |                     | 1,250.4  |     |       |  |      |        |  |     |            |   |     |        |     |     |           |  |      |        |  |     |               |   |  |              |      |   |            |  | (0.1 | ) |  |  | (0.1     | ) |  |  | 1,250.3 |  
|Treasury Shares                            |  |                     | (9.7     | )   |       |  |      |        |  |     |            |   |     |        |     |     |           |  |      |        |  |     |               |   |  |              |      |   |            |  |     |   |  |  |         |   |  |  | (9.7    | )
|Foreign Currency Translation Reserve       |  |                     | (1.9     | )   |       |  |      |        |  |     |            |   |     |        |     |     |           |  |      |        |  |     |               |   |  |              |      |   |            |  | 1.9  |   |  |  | 1.9      |   |  |  |        |  
|Retained Earnings                          |  |                     | 646.5    |     |       |  | (13.7 | )      |  |     | (13.3       | ) |     |        | 23.8 |     |           |  | (20.3 | )      |  |     | (29.3          | ) |  |              |      |   |            |  | 0.5  |   |  |  | (52.3    | ) |  |  | 594.2   |  
|Net Income/(Loss)                          |  |                     | (19.7    | )   |       |  |      |        |  |     |            |   |     |        |     |     |           |  |      |        |  |     |               |   |  |              |      |   |            |  |     |   |  |  |         |   |  |  | (19.7   | )
|                                           |  |                     | 1,938.0  |     |       |  | (13.7 | )      |  |     | (13.3       | ) |     |        | 23.8 |     |           |  | (20.3 | )      |  |     | (29.3          | ) |  |              |      |   |            |  | 2.3  |   |  |  | (50.5    | ) |  |  | 1,887.5 |  
|Minority Interests                         |  |                     | 9.2      |     |       |  |      |        |  |     |            |   |     |        |     |     |           |  |      |        |  |     |               |   |  |              |      |   |            |  | 0.3  |   |  |  | 0.3      |   |  |  | 9.5     |  
|Non-Current Liabilities                    |  |                     |          |     |       |  |       |        |  |     |             |   |     |        |      |     |           |  |       |        |  |     |                |   |  |              |       |   |            |  |      |   |  |  |          |   |  |  |         |  
|Convertible Bond                           |  |                     | 800.0    |     |       |  | (58.9 | )      |  |     |            |   |     |        |     |     |           |  |      |        |  |     |               |   |  |              |      |   |            |  |     |   |  |  | (58.9    | ) |  |  | 741.1   |  
|Other Financial Liabilities                |  |                     | 187.7    |     |       |  |      |        |  |     |            |   |     |        |     |     |           |  |      |        |  |     |               |   |  |              |      |   |            |  | (1.8 | ) |  |  | (1.8     | ) |  |  | 185.9   |  
|Provisions                                 |  |                     | 101.2    |     |       |  |      |        |  |     | 0.1         |   |     |        | (6.1 | )   |           |  |       |        |  |     | 39.9           |   |  |              | (14.9 | ) |            |  | (0.1 | ) |  |  | 18.9     |   |  |  | 120.1   |  
|Deferred Tax Liabilities                   |  |                     | 162.5    |     |       |  |      |        |  |     |            |   |     |        |     |     |           |  |      |        |  |     |               |   |  |              |      |   |            |  | 7.7  |   |  |  | 7.7      |   |  |  | 170.2   |  
|Liabilities Held for Sale                  |  |                     |         |     |       |  |      |        |  |     |            |   |     |        |     |     |           |  |      |        |  |     |               |   |  |              | 109.4 |   |            |  |     |   |  |  | 109.4    |   |  |  | 109.4   |  
|Non-Current Liabilities                    |  |                     | 1,251.4  |     |       |  | (58.9 | )      |  |     | 0.1         |   |     |        | (6.1 | )   |           |  |      |        |  |     | 39.9           |   |  |              | 94.5  |   |            |  | 5.8  |   |  |  | 75.3     |   |  |  | 1,326.7 |  
|Current Liabilities                        |  |                     |          |     |       |  |       |        |  |     |             |   |     |        |      |     |           |  |       |        |  |     |                |   |  |              |       |   |            |  |      |   |  |  |          |   |  |  |         |  
|Short-Term Debt                            |  |                     | 226.3    |     |       |  |      |        |  |     |             |   |     |        |     |     |           |  |      |        |  |     |               |   |  |              |      |   |            |  | 1.9  |   |  |  | 1.9      |   |  |  | 228.2   |  
|Provisions                                 |  |                     | 222.9    |     |       |  |      |        |  |     | (98.9       | ) |     |        |     |     |           |  |      |        |  |     |               |   |  |              | (6.6  | ) |            |  | 0.2  |   |  |  | (105.3   | ) |  |  | 117.6   |  
|Advances Received                          |  |                     | 7,047.8  |     |       |  |      |        |  |     | (6,039.7    | ) |     |        |     |     |           |  |      |        |  |     |               |   |  |              | (32.4 | ) |            |  | (0.8 | ) |  |  | (6,072.9 | ) |  |  | 974.9   |  
|Accounts Payable                           |  |                     | 783.1    |     |       |  |      |        |  |     |             |   |     |        |     |     |           |  |      |        |  |     |               |   |  |              | (36.1 | ) |            |  | 0.1  |   |  |  | (36.0    | ) |  |  | 747.1   |  
|Construction Contracts                     |  |                     |         |     |       |  |      |        |  |     | 16.1        |   |     |        |     |     |           |  |      |        |  |     |               |   |  |              |      |   |            |  |     |   |  |  | 16.1     |   |  |  | 16.1    |  
|Amounts Due to Clients                     |  |                     |          |     |       |  |       |        |  |     |             |   |     |        |      |     |           |  |       |        |  |     |                |   |  |              |       |   |            |  |      |   |  |  |          |   |  |  |         |  
|Current Income Tax                         |  |                     | 111.3    |     |       |  |      |        |  |     |             |   |     |        |     |     |           |  |      |        |  |     |               |   |  |              |      |   |            |  |     |   |  |  |         |   |  |  | 111.3   |  
|Other Current Liabilities                  |  |                     | 418.1    |     |       |  |      |        |  |     | 82.2        |   |     |        |     |     |           |  | 20.3  |        |  |     |               |   |  |              | (19.4 | ) |            |  | 2.0  |   |  |  | 85.1     |   |  |  | 503.2   |  
|Current Liabilities                        |  |                     | 8,809.5  |     |       |  |      |        |  |     | (6,040.3    | ) |     |        |     |     |           |  | 20.3  |        |  |     |               |   |  |              | (94.5 | ) |            |  | 3.4  |   |  |  | (6,111.1 | ) |  |  | 2,698.4 |  
|                                           |  |                     |          |     |       |  |       |        |  |     |             |   |     |        |      |     |           |  |       |        |  |     |                |   |  |              |       |   |            | 
|TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |  |                     | 12,008.1 |     |       |  | (72.6 | )      |  |     | (6,053.5    | ) |     |        | 17.7 |     |           |  |      |        |  |     | 10.6           |   |  |              |      |   |            |  | 11.8 |   |  |  | (6,086.0 | ) |  |  | 5,922.1 |  
|                                           |  |                     |          |     |       |  |       |        |  |     |             |   |     |        |      |     |           |  |       |        |  |     |                |   |  |              |       |   |            | 






| |                                   
| | ----------------------------------
| | (c) Notes on the Main Restatements

a)   







| |   |                                                                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | The reclassification of the redemption premium and issuance
    costs related to the convertible bond issue entered under the
    assets for respective amounts of
    51.6 million
    and
    7.3 million,
    less the convertible bond issue entered under the liabilities;
|
| | - | The cancellation of cumulative translation adjustments in the
    assets for a total of
    9.5 million;                                                                                                                                                                        
|
| | - | The cancellation of the amount of deferred tax asset on the
    reclassification of costs incurred to acquire Coflexip net of
    tax into the value of securities for
    16.8 million;                                                                                        
|
| | - | The cancellation of deferred expenses, net of tax,
    4.5 million.                                                                                                                                                                                                             

F-92



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##### Table of Contents



TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
STANDARDS  (Continued)


  


b) 




| |   |                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | Reallocation under overhead expenses previously allocated to
    building contracts for a total of
    (9.9) million;                                                                                 
|
| | - | Allocation to bid costs previously recorded under contract costs
    for
    (3.8) million;                                                                                                           
|
| | - | Margin recognition according to the percentage of completion
    method on certain minor contracts previously accounted for under
    the completed method, i.e. a positive impact of
    0.4 million.

 





c)     


  


d)   


e) 




| |   |                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | Recording additional provisions for employee benefits, net of
    hedging assets, for
    39.9 million
    under liabilities;                                                                                                         
|
| | - | Booking a deferred tax asset of
    13.9 million
    as well as deducting from Assets Held for Sale the
    reversal of provisions for employee benefits
    (3.3 million)
    associated to companies being sold off under assets.

f)





F-93



---



##### Table of Contents



TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
STANDARDS  (Continued)





g)







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | Recognition of a deferred tax asset of
    7.2 million
    on the additional rental charge booked on the Technip building
    (see d)).                                                                                                                                                                                                                                                                                                                                                   
|
| | - | Recognition of a deferred tax asset on adjustments related to
    construction contracts for
    4.4 million.                                                                                                                                                                                                                                                                                                                                                                             
|
| | - | Cancellation of a negative deferred tax asset of
    (1.6) million as
    a result of the capitalization of dry docking expenses.                                                                                                                                                                                                                                                                                                                                                         
|
| | - | Recognition of a deferred tax liability of
    7.7 million
    on the adjustment on Property, Plant and Equipment (see c)).                                                                                                                                                                                                                                                                                                                                                               
|
| | - | The reclassification of cumulative translation adjustments
    within shareholders equity
    (1.9) million.                                                                                                                                                                                                                                                                                                                                                                             
|
| | - | Inclusion of the goodwill amount in the value of securities
    accounted for under the equity method. (IAS 28 Accounting
    for investments in associates). The goodwill amounts
    recognized following the acquisition of securities accounted for
    under the equity method were previously booked as intangible
    assets under French GAAP. This adjustment applies to Nargan
    securities, which in this specific instance underwent a
    revaluation of
    4.4 million.




5) Financial Statements as of December 31, 2004







| |                                                                       
| | ----------------------------------------------------------------------
| | (a) Shareholders Equity Reconciliation Table:
    French GAAP to IFRS

|                                          |  |                     |         |     |       |  |       |        |  |     |             |   |     |        |      |     |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            |  |  |      |   |  |  |       |   |  |  |         |  
|----------------------------------------- |  | ------------------- | ------- | --- | ----- |  | ----- | ------ |  | --- | ----------- | - | --- | ------ | ---- | --- | ------ |  | --------- | ------ |  | ----- | ------ | - | ---- | -------------- | ---- | - | ------------ |  | ----- | ---------- |  |  | ---- | - |  |  | ----- | - |  |  | ------- | -
|                                          |  | French              |         |     |       |  |       |        |  |     |             |   |     |        |      |     |        |  | Other     |        |  |       |        |  
|                                          |  | GAAP                |         |     |       |  |       |        |  |     |             |   |     |        |      |     |        |  | Standards |        |  | Total |        |   | IFRS |               
|Notes                                     |  | 12/31/2004          |         |     | IAS 1 |  |       | IAS 11 |  |     | IAS 2/16/37 |   |     | IAS 17 |      |     | IAS 19 |  |           | IFRS 2 |  |       | IFRS 3 |   |      | (incl. IAS 12) |      |   | Restatements |  |       | 12/31/2004 | 
|                                          |  |                     |         |     |       |  |       |        |  |     |             |   |     |        |      |     |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            | 
|                                          |  |                     |         | (a) |       |  | (b)   |        |  | (c) |             |   | (d) |        |      | (e) |        |  | (f)       |        |  | (g)   |        |   | (h)  |                |      |   |              | 
|                                          |  | In millions of Euro |        
|Consolidated shareholders equity         |  |                     |         |     |       |  |       |        |  |     |             |   |     |        |      |     |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            |  |  |      |   |  |  |       |   |  |  |         |  
|Common Stock                              |  |                     | 73.5    |     |       |  |      |        |  |     |            |   |     |        |     |     |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |     |   |  |  |      |   |  |  | 73.5    |  
|Paid-in-Surplus                           |  |                     | 1,275.6 |     |       |  |      |        |  |     |            |   |     |        |     |     |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |     |   |  |  |      |   |  |  | 1,275.6 |  
|Treasury Shares                           |  |                     | (32.4   | )   |       |  |      |        |  |     |            |   |     |        |     |     |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |     |   |  |  |      |   |  |  | (32.4   | )
|Foreign Currency                          |  |                     | (25.0   | )   |       |  |      |        |  |     |            |   |     |        |     |     |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  | (9.3 | ) |  |  | (9.3  | ) |  |  | (34.3   | )
|Translation Reserve
    Retained Earnings |  |                     | 492.6   |     |       |  | (13.7 | )      |  |     | (13.3       | ) |     |        | 23.8 |     |        |  | (20.3     | )      |  |       | (29.3  | ) |      |                | 5.6  |   |              |  |      |            |  |  | 12.0 |   |  |  | (35.2 | ) |  |  | 457.4   |  
|Net Income/(Loss)                         |  |                     | 4.7     |     |       |  | (5.9  | )      |  |     | (9.5        | ) |     |        | 0.1  |     |        |  | (1.7      | )      |  |       | 2.5    |   |      |                | (5.8 | ) |              |  | 116.6 |            |  |  | 10.8 |   |  |  | 107.1 |   |  |  | 111.8   |  
|                                          |  |                     |         |     |       |  |       |        |  |     |             |   |     |        |      |     |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            | 
|Shareholders Equity                      |  |                     | 1,789.0 |     |       |  | (19.6 | )      |  |     | (22.8       | ) |     |        | 23.9 |     |        |  | (22.0     | )      |  |       | (26.8  | ) |      |                | (0.2 | ) |              |  | 116.6 |            |  |  | 13.5 |   |  |  | 62.6  |   |  |  | 1,851.6 |  
|                                          |  |                     |         |     |       |  |       |        |  |     |             |   |     |        |      |     |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            | 
|Minority Interests                        |  |                     | 10.4    |     |       |  |      |        |  |     |            |   |     |        |     |     |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  | (0.6 | ) |  |  | (0.6  | ) |  |  | 9.8     |  

F-94



---



##### Table of Contents



TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
STANDARDS  (Continued)




| |                                                                
| | ---------------------------------------------------------------
| | (b) Balance Sheet Reconciliation Table: French GAAP to
    IFRS

|                                                  |  |                     |          |  |       |  |       |        |  |  |             |   |  |        |      |   |        |  |           |        |  |       |        |  |      |                |   |  |              |  |       |            |  |  |       |   |  |  |          |   |  |  |         | 
|------------------------------------------------- |  | ------------------- | -------- |  | ----- |  | ----- | ------ |  |  | ----------- | - |  | ------ | ---- | - | ------ |  | --------- | ------ |  | ----- | ------ |  | ---- | -------------- | - |  | ------------ |  | ----- | ---------- |  |  | ----- | - |  |  | -------- | - |  |  | ------- | 
|                                                  |  | French              |          |  |       |  |       |        |  |  |             |   |  |        |      |   |        |  | Other     |        |  |       |        | 
|                                                  |  | GAAP                |          |  |       |  |       |        |  |  |             |   |  |        |      |   |        |  | Standards |        |  | Total |        |  | IFRS |               
|Notes                                             |  | 12/31/2004          |          |  | IAS 1 |  |       | IAS 11 |  |  | IAS 2/16/37 |   |  | IAS 17 |      |   | IAS 19 |  |           | IFRS 2 |  |       | IFRS 3 |  |      | (incl. IAS 12) |   |  | Restatements |  |       | 12/31/2004 | 
|                                                  |  |                     |          |  |       |  |       |        |  |  |             |   |  |        |      |   |        |  |           |        |  |       |        |  |      |                |   |  |              |  |       |            | 
|                                                  |  | (*)                 |          |  | (a)   |  |       | (b)    |  |  | (c)         |   |  | (d)    |      |   | (e)    |  |           | (f)    |  |       | (g)    |  |      | (h)            |   |  |              |  |      
|                                                  |  | In millions of Euro |         
|Non-Current Assets                                |  |                     |          |  |       |  |       |        |  |  |             |   |  |        |      |   |        |  |           |        |  |       |        |  |      |                |   |  |              |  |       |            |  |  |       |   |  |  |          |   |  |  |         | 
|Intangible Assets, Net                            |  |                     | 2,363.9  |  |       |  | (0.7  | )      |  |  |            |   |  |        | (0.3 | ) |        |  |          |        |  |       |       |  |      |                |  |  |              |  | 116.6 |            |  |  | (6.8  | ) |  |  | 108.8    |   |  |  | 2,472.7 | 
|Property, Plant and Equipment, Net                |  |                     | 714.9    |  |       |  |      |        |  |  |            |   |  |        | 22.5 |   |        |  |          |        |  |       |       |  |      |                |  |  |              |  |      |            |  |  | (0.9  | ) |  |  | 21.6     |   |  |  | 736.5   | 
|Equity Affiliates                                 |  |                     | 13.5     |  |       |  |      |        |  |  |            |   |  |        |     |   |        |  |          |        |  |       |       |  |      |                |  |  |              |  |      |            |  |  | 6.4   |   |  |  | 6.4      |   |  |  | 19.9    | 
|Other Financial Assets                            |  |                     | 5.8      |  |       |  | (3.1  | )      |  |  |            |   |  |        |     |   |        |  |          |        |  |       |       |  |      |                |  |  |              |  |      |            |  |  | 0.7   |   |  |  | (2.4     | ) |  |  | 3.4     | 
|Deferred Tax Assets                               |  |                     | 80.2     |  |       |  | 14.4  |        |  |  |            |   |  |        |     |   |        |  |          |        |  |       | 12.7   |  |      |                |  |  |              |  |      |            |  |  | (40.7 | ) |  |  | (13.6    | ) |  |  | 66.6    | 
|Assets Held for Sale                              |  |                     |         |  |       |  |      |        |  |  |            |   |  |        |     |   |        |  |          |        |  |       |       |  |      |                |  |  |              |  |      |            |  |  |      |   |  |  |         |   |  |  |        | 
|Non-Current Assets                                |  |                     | 3,178.3  |  |       |  | 10.6  |        |  |  |            |   |  |        | 22.2 |   |        |  |          |        |  |       | 12.7   |  |      |                |  |  |              |  | 116.6 |            |  |  | (41.3 | ) |  |  | 120.8    |   |  |  | 3,299.1 | 
|Current Assets                                    |  |                     |          |  |       |  |       |        |  |  |             |   |  |        |      |   |        |  |           |        |  |       |        |  |      |                |   |  |              |  |       |            |  |  |       |   |  |  |          |   |  |  |         | 
|Inventories, Net                                  |  |                     | 98.2     |  |       |  |      |        |  |  | (8.3        | ) |  |        | (2.7 | ) |        |  |          |        |  |       |       |  |      |                |  |  |              |  |      |            |  |  |      |   |  |  | (11.0    | ) |  |  | 87.2    | 
|Construction Contracts  Amounts Due from Clients |  |                     | 6,593.4  |  |       |  |      |        |  |  | (6,192.8    | ) |  |        |     |   |        |  |          |        |  |       |       |  |      |                |  |  |              |  |      |            |  |  |      |   |  |  | (6,192.8 | ) |  |  | 400.6   | 
|Advances to Suppliers                             |  |                     | 249.4    |  |       |  |      |        |  |  |            |   |  |        |     |   |        |  |          |        |  |       |       |  |      |                |  |  |              |  |      |            |  |  | (0.1  | ) |  |  | (0.1     | ) |  |  | 249.3   | 
|Accounts Receivable, Net                          |  |                     | 594.8    |  |       |  |      |        |  |  | (245.8      | ) |  |        |      |   |        |  |           |        |  |       |        |  |      |                |   |  |              |  |       |            |  |  |       |   |  |  | (245.8   | ) |  |  | 349.0   | 
|Current Income Tax                                |  |                     | 109.5    |  |       |  | 0.2   |        |  |  |            |   |  |        |     |   |        |  |          |        |  |       |       |  |      |                |  |  |              |  |      |            |  |  | 27.4  |   |  |  | 27.6     |   |  |  | 137.1   | 
|Other Current Assets, Net                         |  |                     | 515.6    |  |       |  | (62.7 | )      |  |  | 8.0         |   |  |        |     |   |        |  |          |        |  |       |       |  |      |                |  |  |              |  |      |            |  |  | 0.4   |   |  |  | (54.3    | ) |  |  | 461.3   | 
|Cash and Cash                                     |  |                     | 1,434.0  |  |       |  |      |        |  |  |            |   |  |        |     |   |        |  |          |        |  |       |       |  |      |                |  |  |              |  |      |            |  |  |      |   |  |  |         |   |  |  | 1,434.0 | 
|Current Assets                                    |  |                     | 9,594.9  |  |       |  | (62.5 | )      |  |  | (6,438.9    | ) |  |        | (2.7 | ) |        |  |          |        |  |       |       |  |      |                |  |  |              |  |      |            |  |  | 27.7  |   |  |  | (6,476.4 | ) |  |  | 3,118.5 | 
|                                                  |  |                     |          |  |       |  |       |        |  |  |             |   |  |        |      |   |        |  |           |        |  |       |        |  |      |                |   |  |              |  |       |            | 
|TOTAL ASSETS                                      |  |                     | 12,773.2 |  |       |  | (51.9 | )      |  |  | (6,438.9    | ) |  |        | 19.5 |   |        |  |          |        |  |       | 12.7   |  |      |                |  |  |              |  | 116.6 |            |  |  | (13.6 | ) |  |  | (6,355.6 | ) |  |  | 6,417.6 | 
|                                                  |  |                     |          |  |       |  |       |        |  |  |             |   |  |        |      |   |        |  |           |        |  |       |        |  |      |                |   |  |              |  |       |            | 

F-95



---



##### Table of Contents



TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
STANDARDS  (Continued)


|                                                |  |                     |          |   |       |  |       |        |  |  |             |   |  |        |      |   |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            |  |  |       |   |  |  |          |   |  |  |         |  
|----------------------------------------------- |  | ------------------- | -------- | - | ----- |  | ----- | ------ |  |  | ----------- | - |  | ------ | ---- | - | ------ |  | --------- | ------ |  | ----- | ------ | - | ---- | -------------- | ---- | - | ------------ |  | ----- | ---------- |  |  | ----- | - |  |  | -------- | - |  |  | ------- | -
|                                                |  | French              |          |   |       |  |       |        |  |  |             |   |  |        |      |   |        |  | Other     |        |  |       |        |  
|                                                |  | GAAP                |          |   |       |  |       |        |  |  |             |   |  |        |      |   |        |  | Standards |        |  | Total |        |   | IFRS |               
|Notes                                           |  | 12/31/2004          |          |   | IAS 1 |  |       | IAS 11 |  |  | IAS 2/16/37 |   |  | IAS 17 |      |   | IAS 19 |  |           | IFRS 2 |  |       | IFRS 3 |   |      | (incl. IAS 12) |      |   | Restatements |  |       | 12/31/2004 | 
|                                                |  |                     |          |   |       |  |       |        |  |  |             |   |  |        |      |   |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            | 
|                                                |  | (*)                 |          |   | (a)   |  |       | (b)    |  |  | (c)         |   |  | (d)    |      |   | (e)    |  |           | (f)    |  |       | (g)    |   |      | (h)            |      |   |              |  |      
|                                                |  | In millions of Euro |         
|Shareholders Equity                            |  |                     |          |   |       |  |       |        |  |  |             |   |  |        |      |   |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            |  |  |       |   |  |  |          |   |  |  |         |  
|Common Stock                                    |  |                     | 73.5     |   |       |  |      |        |  |  |            |   |  |        |     |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |      |   |  |  |         |   |  |  | 73.5    |  
|Paid-in-Surplus                                 |  |                     | 1,275.6  |   |       |  |      |        |  |  |            |   |  |        |     |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |      |   |  |  |         |   |  |  | 1,275.6 |  
|Treasury Shares                                 |  |                     | (32.4    | ) |       |  |      |        |  |  |            |   |  |        |     |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |      |   |  |  |         |   |  |  | (32.4   | )
|Foreign Currency                                |  |                     | (25.0    | ) |       |  |      |        |  |  |            |   |  |        |     |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  | (9.3  | ) |  |  | (9.3     | ) |  |  | (34.3   | )
|Translation Reserve Retained Earnings           |  |                     | 492.6    |   |       |  | (13.7 | )      |  |  | (13.3       | ) |  |        | 23.8 |   |        |  | (20.3     | )      |  |       | (29.3  | ) |      |                | 5.6  |   |              |  |      |            |  |  | 12.0  |   |  |  | (35.2    | ) |  |  | 457.4   |  
|Net Income/(Loss)                               |  |                     | 4.7      |   |       |  | (5.9  | )      |  |  | (9.5        | ) |  |        | 0.1  |   |        |  | (1.7      | )      |  |       | 2.5    |   |      |                | (5.8 | ) |              |  | 116.6 |            |  |  | 10.8  |   |  |  | 107.1    |   |  |  | 111.8   |  
|                                                |  |                     | 1,789.0  |   |       |  | (19.6 | )      |  |  | (22.8       | ) |  |        | 23.9 |   |        |  | (22.0     | )      |  |       | (26.8  | ) |      |                | (0.2 | ) |              |  | 116.6 |            |  |  | 13.5  |   |  |  | 62.6     |   |  |  | 1,851.6 |  
|Minority Interests                              |  |                     | 10.4     |   |       |  |      |        |  |  |            |   |  |        |     |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  | (0.6  | ) |  |  | (0.6     | ) |  |  | 9.8     |  
|Non-Current Liabilities                         |  |                     |          |   |       |  |       |        |  |  |             |   |  |        |      |   |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            |  |  |       |   |  |  |          |   |  |  |         |  
|Convertible Bond                                |  |                     | 706.9    |   |       |  | (36.0 | )      |  |  |            |   |  |        |     |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |      |   |  |  | (36.0    | ) |  |  | 670.9   |  
|Other Financial Liabilities                     |  |                     | 735.5    |   |       |  | 2.3   |        |  |  |            |   |  |        |     |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |      |   |  |  | 2.3      |   |  |  | 737.8   |  
|Provisions                                      |  |                     | 78.9     |   |       |  |      |        |  |  | 1.2         |   |  |        | (4.5 | ) |        |  |          |        |  |       | 39.5   |   |      |                |     |   |              |  |      |            |  |  | 0.2   |   |  |  | 36.4     |   |  |  | 115.3   |  
|Deferred Tax Liabilities                        |  |                     | 144.8    |   |       |  |      |        |  |  |            |   |  |        |     |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  | (29.3 | ) |  |  | (29.3    | ) |  |  | 115.5   |  
|Liabilities Held for Sale                       |  |                     |         |   |       |  |      |        |  |  |            |   |  |        |     |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |      |   |  |  |         |   |  |  |        |  
|Non-Current Liabilities                         |  |                     | 1,666.1  |   |       |  | (33.7 | )      |  |  | 1.2         |   |  |        | (4.5 | ) |        |  |          |        |  |       | 39.5   |   |      |                |     |   |              |  |      |            |  |  | (29.1 | ) |  |  | (26.6    | ) |  |  | 1,639.5 |  
|Current Liabilities                             |  |                     |          |   |       |  |       |        |  |  |             |   |  |        |      |   |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            |  |  |       |   |  |  |          |   |  |  |         |  
|Short-term Debt                                 |  |                     | 194.4    |   |       |  | (2.3  | )      |  |  |            |   |  |        |     |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  | (0.1  | ) |  |  | (2.4     | ) |  |  | 192.0   |  
|Provisions                                      |  |                     | 243.8    |   |       |  |      |        |  |  | (122.3      | ) |  |        |     |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |      |   |  |  | (122.3   | ) |  |  | 121.5   |  
|Advances Received                               |  |                     | 7,353.6  |   |       |  |      |        |  |  | (6,438.0    | ) |  |        |     |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |      |   |  |  | (6,438.0 | ) |  |  | 915.6   |  
|Accounts Payable                                |  |                     | 852.5    |   |       |  |      |        |  |  |             |   |  |        |     |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |      |   |  |  |         |   |  |  | 852.5   |  
|Construction Contracts  Amounts due to Clients |  |                     |         |   |       |  |      |        |  |  | 33.1        |   |  |        |     |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |      |   |  |  | 33.1     |   |  |  | 33.1    |  
|Current Income Tax                              |  |                     | 27.6     |   |       |  |      |        |  |  |            |   |  |        |     |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  | 2.7   |   |  |  | 2.7      |   |  |  | 30.3    |  
|Other Current Liabilities                       |  |                     | 635.8    |   |       |  | 3.7   |        |  |  | 109.9       |   |  |        | 0.1  |   |        |  | 22.0      |        |  |       |       |   |      |                | 0.2  |   |              |  |      |            |  |  |      |   |  |  | 135.9    |   |  |  | 771.7   |  
|Current Liabilities                             |  |                     | 9,307.7  |   |       |  | 1.4   |        |  |  | (6,417.3    | ) |  |        | 0.1  |   |        |  | 22.0      |        |  |       |       |   |      |                | 0.2  |   |              |  |      |            |  |  | 2.6   |   |  |  | (6,391.0 | ) |  |  | 2,916.7 |  
|                                                |  |                     |          |   |       |  |       |        |  |  |             |   |  |        |      |   |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            | 
|TOTAL LIABILITIES AND SHAREHOLDERS EQUITY      |  |                     | 12,773.2 |   |       |  | (51.9 | )      |  |  | (6,438.9    | ) |  |        | 19.5 |   |        |  |          |        |  |       | 12.7   |   |      |                |     |   |              |  | 116.6 |            |  |  | (13.6 | ) |  |  | (6,355.6 | ) |  |  | 6,417.6 |  
|                                                |  |                     |          |   |       |  |       |        |  |  |             |   |  |        |      |   |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            | 






|    |                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------
|(*) | the breakdown of current and non current assets/ liabilities
    appears in the French GAAP column in order to comply
    with the balance sheet format.

F-96



---



##### Table of Contents



TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
STANDARDS  (Continued)





(c) Income Statement
Reconciliation Table: French GAAP to IFRS


|                                                                               |  |                     |          |   |       |  |       |        |  |  |             |   |  |        |       |   |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            |  |  |      |   |  |  |        |   |  |  |          |  
|------------------------------------------------------------------------------ |  | ------------------- | -------- | - | ----- |  | ----- | ------ |  |  | ----------- | - |  | ------ | ----- | - | ------ |  | --------- | ------ |  | ----- | ------ | - | ---- | -------------- | ---- | - | ------------ |  | ----- | ---------- |  |  | ---- | - |  |  | ------ | - |  |  | -------- | -
|                                                                               |  | French              |          |   |       |  |       |        |  |  |             |   |  |        |       |   |        |  | Other     |        |  |       |        |  
|                                                                               |  | GAAP                |          |   |       |  |       |        |  |  |             |   |  |        |       |   |        |  | Standards |        |  | Total |        |   | IFRS |               
|Notes                                                                          |  | 12/31/2004          |          |   | IAS 1 |  |       | IAS 11 |  |  | IAS 2/16/37 |   |  | IAS 17 |       |   | IAS 19 |  |           | IFRS 2 |  |       | IFRS 3 |   |      | (incl. IAS 12) |      |   | Restatements |  |       | 12/31/2004 | 
|                                                                               |  |                     |          |   |       |  |       |        |  |  |             |   |  |        |       |   |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            | 
|                                                                               |  | (*)                 |          |   | (a)   |  |       | (b)    |  |  | (c)         |   |  | (d)    |       |   | (e)    |  |           | (f)    |  |       | (g)    |   |      | (h)            |      |   |              |  |      
|                                                                               |  | In millions of Euro |         
|Revenues                                                                       |  |                     | 5,141.0  |   |       |  |      |        |  |  | (0.2        | ) |  |        |      |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  | 0.1  |   |  |  | (0.1   | ) |  |  | 5,140.9  |  
|Cost of Sales                                                                  |  |                     | (4,472.4 | ) |       |  | (88.2 | )      |  |  | (4.1        | ) |  |        | (12.8 | ) |        |  |          |        |  |       | (0.3   | ) |      |                |     |   |              |  |      |            |  |  |     |   |  |  | (105.4 | ) |  |  | (4,577.8 | )
|Gross Margin                                                                   |  |                     | 668.6    |   |       |  | (88.2 | )      |  |  | (4.3        | ) |  |        | (12.8 | ) |        |  |          |        |  |       | (0.3   | ) |      |                |     |   |              |  |      |            |  |  | 0.1  |   |  |  | (105.5 | ) |  |  | 563.1    |  
|Depreciation and Amortization other than Goodwill                              |  |                     | (116.2   | ) |       |  | 103.3 |        |  |  |            |   |  |        | 12.9  |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |     |   |  |  | 116.2  |   |  |  |         |  
|Other Operating Income                                                         |  |                     |         |   |       |  | 4.8   |        |  |  | (1.7        | ) |  |        |      |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |     |   |  |  | 3.1    |   |  |  | 3.1      |  
|Research and Development Expenses                                              |  |                     | (30.2    | ) |       |  |      |        |  |  |            |   |  |        |      |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |     |   |  |  |       |   |  |  | (30.2    | )
|Selling Costs                                                                  |  |                     | (96.8    | ) |       |  |      |        |  |  | (2.3        | ) |  |        |      |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |     |   |  |  | (2.3   | ) |  |  | (99.1    | )
|Administrative Costs                                                           |  |                     | (166.9   | ) |       |  | (13.9 | )      |  |  | (1.0        | ) |  |        |      |   |        |  | (1.7      | )      |  |       |       |   |      |                |     |   |              |  |      |            |  |  |     |   |  |  | (16.6  | ) |  |  | (183.5   | )
|Other Operating Expenses                                                       |  |                     | (21.2    | ) |       |  | (4.6  | )      |  |  | (0.2        | ) |  |        |      |   |        |  |          |        |  |       | 5.0    |   |      |                | (5.8 | ) |              |  |      |            |  |  |     |   |  |  | (5.6   | ) |  |  | (26.8    | )
|Goodwill Amortization                                                          |  |                     | (117.3   | ) |       |  |      |        |  |  |            |   |  |        |      |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  | 116.6 |            |  |  |     |   |  |  | 116.6  |   |  |  | (0.7     | )
|                                                                               |  |                     |          |   |       |  |       |        |  |  |             |   |  |        |       |   |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            | 
|Income/(Loss) from Operations                                                  |  |                     | 120.0    |   |       |  | 1.4   |        |  |  | (9.5        | ) |  |        | 0.1   |   |        |  | (1.7      | )      |  |       | 4.7    |   |      |                | (5.8 | ) |              |  | 116.6 |            |  |  | 0.1  |   |  |  | 105.9  |   |  |  | 225.9    |  
|                                                                               |  |                     |          |   |       |  |       |        |  |  |             |   |  |        |       |   |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            | 
|Financial Expenses                                                             |  |                     | (70.6    | ) |       |  | (7.3  | )      |  |  |            |   |  |        |      |   |        |  |          |        |  |       | (4.6   | ) |      |                |     |   |              |  |      |            |  |  | (0.2 | ) |  |  | (12.1  | ) |  |  | (82.7    | )
|Financial Income                                                               |  |                     | 16.3     |   |       |  |      |        |  |  |            |   |  |        |      |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |     |   |  |  |       |   |  |  | 16.3     |  
|Share of Income/(Loss) of Associates Accounted for using the
    Equity Method |  |                     | 1.2      |   |       |  |      |        |  |  |            |   |  |        |      |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |     |   |  |  |       |   |  |  | 1.2      |  
|                                                                               |  |                     |          |   |       |  |       |        |  |  |             |   |  |        |       |   |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            | 
|Income/(Loss) before Tax                                                       |  |                     | 66.9     |   |       |  | (5.9  | )      |  |  | (9.5        | ) |  |        | 0.1   |   |        |  | (1.7      | )      |  |       | 0.1    |   |      |                | (5.8 | ) |              |  | 116.6 |            |  |  | (0.1 | ) |  |  | 93.8   |   |  |  | 160.7    |  
|                                                                               |  |                     |          |   |       |  |       |        |  |  |             |   |  |        |       |   |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            | 
|Income Tax Expense                                                             |  |                     | (65.0    | ) |       |  |      |        |  |  |            |   |  |        |      |   |        |  |          |        |  |       | (0.9   | ) |      |                |     |   |              |  |      |            |  |  | 11.7 |   |  |  | 10.8   |   |  |  | (54.2    | )
|Income/(Loss) from Discontinued Operations                                     |  |                     | 5.2      |   |       |  |      |        |  |  |            |   |  |        |      |   |        |  |          |        |  |       | 3.3    |   |      |                |     |   |              |  |      |            |  |  | (0.8 | ) |  |  | 2.5    |   |  |  | 7.7      |  
|                                                                               |  |                     |          |   |       |  |       |        |  |  |             |   |  |        |       |   |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            | 
|Net Income/(Loss) for the Year                                                 |  |                     | 7.1      |   |       |  | (5.9  | )      |  |  | (9.5        | ) |  |        | 0.1   |   |        |  | (1.7      | )      |  |       | 2.5    |   |      |                | (5.8 | ) |              |  | 116.6 |            |  |  | 10.8 |   |  |  | 107.1  |   |  |  | 114.2    |  
|                                                                               |  |                     |          |   |       |  |       |        |  |  |             |   |  |        |       |   |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            | 
|Attributable to:                                                               |  |                     |          |   |       |  |       |        |  |  |             |   |  |        |       |   |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            |  |  |      |   |  |  |        |   |  |  |          |  
|Shareholders of the Parent Company                                             |  |                     | 4.7      |   |       |  | (5.9  | )      |  |  | (9.5        | ) |  |        | 0.1   |   |        |  | (1.7      | )      |  |       | 2.5    |   |      |                | (5.8 | ) |              |  | 116.6 |            |  |  | 10.8 |   |  |  | 107.1  |   |  |  | 111.8    |  
|Minority Interests                                                             |  |                     | 2.4      |   |       |  |      |        |  |  |            |   |  |        |      |   |        |  |          |        |  |       |       |   |      |                |     |   |              |  |      |            |  |  |     |   |  |  |       |   |  |  | 2.4      |  
|                                                                               |  |                     |          |   |       |  |       |        |  |  |             |   |  |        |       |   |        |  |           |        |  |       |        |   |      |                |      |   |              |  |       |            | 






|    |                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(*) | the non operating charge (16.1 million euros) disclosed in
    French GAAP has been reclassified in the French GAAP column as
    follows to comply with the IFRS format:



| |   |                                                                  
| | - | -----------------------------------------------------------------
| | - | 5.2 million euros in Income/loss from discontinued
    operations
|
| | - | (21.3) million euros in Income/loss from operations              

a)  




| |   |                                                                                                                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | Cancellation of the unrealized exchange losses posted on the
    balance sheet
    (0.6) million;                                                                                                                                                                                                                                              
|
| | - | Cancellation of deferred expenses
    (2.7) million of
    which
    (2.0) million
    are related to the reimbursement premium and issuance cost
    related to the convertible bond less the depreciations posted in
    2004 as per French GAAP, which were reclassified to equity
    accounts as of January 1, 2004 for
    1.1 million;
|
| | - | The restatement of the exchange losses recognized by the
    Offshore activity in French GAAP
    (3.7) million.                                                                                                                                                                                                                               




F-97



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TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
STANDARDS  (Continued)


  







| |   |                                                                                                                                                                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | The transfer from the asset side of the balance sheet of the
    reimbursement premium and issuance cost related to the
    convertible bond OCEANE  respectively for
    (32.1) million
    and
    (3.9) million 
    to the account Convertible Bond on the liability
    side;
|
| | - | The cancellation of the unrealized exchange losses for an amount
    of
    (13.3) million;                                                                                                                                                                                            
|
| | - | The reclassification of deferred tax asset related to Coflexip
    acquisition costs for an amount of
    (16.8) million.                                                                                                                                                              

   





b)  




| |   |                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | Overhead expenses related to functional activities,
    3.4 million
    have been reallocated, as they are no longer attributable to
    contract costs;                                                  
|
| | - | Bid costs on contracts are not capitalized any more, if there is
    not a strong probability that the contract will be awarded to
    Technip. Those costs are expenses when incurred
    (12.9) million.

   





c)   







| |   |                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------
| | - | Additional amortization on spare parts which have been
    capitalized to comply with IFRS:
    (1.0) million
    (see information below);

F-98



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##### Table of Contents



TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
STANDARDS  (Continued)




| |   |                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | Cancellation of the release of provision related to the dry
    docking operations. Under French GAAP, this release was posted
    through a profit and loss account:
    (1.7) million;                   
|
| | - | Additional amortization incurred by the change of the useful
    life of fixed assets located in the Trait factory:
    (0.6) million;                                                                     
|
| | - | Cancellation of the dry docking expenses incurred in the year as
    they are capitalized. The impact has been partially offset by
    the related amortization. The net impact is
    6.8 million,
    and
|
| | - | Additional amortization incurred by the change of the useful
    life of ships:
    (3.4) million.                                                                                                         







d)      


e)  




| |   |                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | A charge after tax of
    (0.8) million
    corresponding to the difference between the Group actuary
    calculation done as per IAS 19 and the recognized debts shown on
    the local books by the subsidiaries                                         
|
| | - | The profit of
    3.3 million
    incurred by the release of provision attached to the
    subsidiaries sold in the course of the year 2004. That amount is
    now shown under the Discontinued Operations line
    item in the profit and loss account.





| |   |                                                                                                
| | - | -----------------------------------------------------------------------------------------------
| | - | On the liability side, an additional provision for employee
    benefits, of
    39.5 million;
|
| | - | On the asset side a deferred tax asset of
    12.7 million.                                   

f)   


g) 


h)





F-99



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##### Table of Contents



TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
STANDARDS  (Continued)









| |   |                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | As per IAS 12, the offset between deferred tax assets and
    deferred tax liabilities for
    (23.9) million;                                                                                     
|
| | - | As per IAS 28, inclusion of the goodwill amount in the
    value of securities accounted for under the equity method. The
    total restatement amounts to
    6.4 million
    at the closing date.

F-100