Subsea 7 awarded contract offshore US Gulf of Mexico
Luxembourg – 21 December 2018 - Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY)
today announced the award of a sizeable(1) SURF (subsea umbilicals, risers and
flowlines) contract by BP for the Manuel project in the US Gulf of Mexico.
Project execution will be delivered by Subsea Integration Alliance (SIA)(2),
which is a partnership between Subsea 7 and OneSubsea Schlumberger, to provide
BP with a fully integrated solution.
The Manuel project comprises a two well development tie-back to the Na Kika
production facility, working at water depths of up to 1,900 meters. The
project’s SURF workscope includes engineering, procurement, construction and
installation (EPCI) of an electrically heat traced flowline (EHTF) and a steel
catenary riser and all associated subsea structures as well as front-end
engineering and design (FEED). Offshore operations are due to commence in the
fourth quarter of 2019.
Early engagement between SIA and BP has enabled the project to be the first in
the US to use Subsea 7’s EHTF technology, which enables cost-effective longer
tie back solutions.
Craig Broussard, Subsea 7 Vice President for the Gulf of Mexico, said: “The
award of the Manuel project is a clear demonstration of the power of
collaboration between all stakeholders. Together with our SIA partner,
OneSubsea, and the BP team, we have produced an optimised solution that will see
the deployment of EHTF technology. This has enabled us to reduce the total cost
of the project, while in parallel accelerating the first oil target date to just
24 months from discovery. SIA has been able to deliver this accelerated schedule
by removing critical path challenges through early engagement, on both SPS and
SURF scopes of work. This has ultimately allowed us to achieve a solution that
creates sustainable value for all parties despite a challenging cost
environment.”
(1) Subsea 7 defines a sizeable contract as being between USD 50 million and USD
150 million
(2) Subsea Integration Alliance is a worldwide non-incorporated partnership
between OneSubsea, Schlumberger and Subsea 7 developed to jointly design,
develop, and deliver integrated subsea development solutions through the
combination of subsurface expertise, subsea production systems (SPS), subsea
processing systems, subsea umbilicals, risers and flowlines systems (SURF), and
life of field services. Its goal is delivering complementary technology and
expertise that help customers extend field life and lower production costs,
ensuring greater certainty of recovery and return on the investment.
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Subsea 7 S.A. is a leading global contractor in seabed-to-surface engineering,
construction and services to the offshore energy industry. We provide technical
solutions to enable the delivery of complex projects in all water depths and
challenging environments.
Subsea 7 is listed on the Oslo Bors (SUBC), ISIN LU0075646355.
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Contact for investment community enquiries:
Isabel Green
Investor Relations Director
Tel +44 20 8210 5568
isabel.green@subsea7.com
www.subsea7
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