Study awards on project trio could lead to lucrative EPCI deals for UK contractor with co-venturer OneSubsea
Subsea 7 has netted a potentially lucrative contract haul from Woodside Petroleum for engineering studies on three projects that could be worth more than $750 million in total for the UK-based contractor.
The contracts, awarded since last December, cover studies to finalise the technical definition of the proposed phase one of the SNE oilfield development off Senegal, and the Scarborough gas field and phase two of the Julimar-Brunello gas field schemes off Australia.
The awards also carry an option for engineering, procurement, construction and installation contracts on the project trio, contingent on final investment decisions by the Australian operator that are due to be made sometime between mid-2019 and early 2020.
If all projects are sanctioned, this would amount to a major project award for Subsea 7 with a total value of more than $750 million, the Oslo-listed player said in a statement.
The contracts for SNE and Scarborough have been awarded to the so-called Subsea Integration Alliance, a joint venture between Subsea 7, OneSubsea and Schlumberger, that is competing mainly with TechnipFMC in the global market for integrated EPCI contracts for both subsea production systems and subsea umbilical, risers and flowlines.
Subsea 7 would install about 90 kilometres of rigid pipelines on SNE on which Woodside recently confirmed the award to Modec of a floating production, storage and offloading vessel to exploit the field in the Sangomar Deep Offshore area where 23 production wells will be drilled.
At Scarborough, the contractor would carry out engineering, procurement, construction and installation of subsea rigid pipelines, flexible risers, umbilicals and associated infrastructure at the field project off North West Australia
The full scope of work on Julimar will be to design, procure, install and commission a 22-kilometre gas transmission flowline and umbilical system under the standalone Surf contract.
All three projects will be executed using reeled pipelay and heavy construction vessels from Subsea 7’s fleet, with offshore campaigns scheduled between 2021 and 2023.
Subsea 7’s vice president for Australia and New Zealand, Andy Woolgar, said the awards “highlight the engineering expertise and strength of our business and our local workforce to perform integrated projects from pre-FEED to execution as well as standalone projects”.
Its Africa boss Gilles Lafaye said “Senegal is an exciting new market for Subsea 7” and “we look forward to building a long-term and mutually beneficial partnership with Woodside on this project and in future developments”.
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