BP entrusts Singapore player with early works on its newbuild Gulf of Mexico-bound floating production unit

June 5, 2024, by Melisa Čavčić

BP Exploration & Production, a subsidiary of the UK-based energy heavyweight BP, has hired Singapore-headquartered Seatrium, former Sembcorp Marine and Keppel Offshore & Marine, to handle early engineering works for its newbuild floating production unit (FPU), which will be deployed at the oil major’s deepwater project in the U.S. Gulf of Mexico.

With its deepwater Kaskida project in the concept selection phase, BP is progressing further with its plans to develop this field in the U.S. Gulf of Mexico. To this end, the firm has awarded a letter of intent (LOI) to Seatrium for certain early engineering works pending the finalization of a definitive contract for engineering, procurement, construction, and commissioning (EPC) job for the FPU Kaskida.

While explaining that the LOI is not expected to have any material impact on its net tangible assets and earnings per share for the financial year ending December 31, 2024, Seatrium underlines that the EPC contract award is subject to mutually agreed terms and conditions management approval, and BP making a final investment decision (FID) for the project.

William Gu, Seatrium’s Executive Vice President of Oil & Gas (International), commented: “We are pleased to secure the letter of intent with BP for the Kaskida development. This award reflects our expertise and successful track record of delivering complex FPUs. Over the years, Seatrium has established itself as the market leader in EPC projects for FPUs. We look forward to the opportunity to contribute to the success of the Kaskida project.”

Located approximately 250 miles southwest of New Orleans, in the Keathley Canyon area of the Gulf of Mexico, the Kaskida greenfield development project comprises a single topside module supported by a four-column semi-submersible hull. This FPU is supported by subsea production wells situated in a water depth of approximately 6,000 feet.

Seatrium has been a busy bee this year with multiple new contracts in the bag. The most recent one was secured with Petrobras for the supply of two floating production, storage, and offloading (FPSO) units, which will work in the pre-salt Santos Basin off the coast of Brazil.

The Singapore-based player also won a deal with SBM Offshore for the topside fabrication and integration of the FPSO Jaguar, which will work at ExxonMobil’s Whiptail oil development on the Stabroek block off the coast of Guyana.

This was proceeded by a contract with MODEC for the installation and integration of topside modules on board the FPSO Errea Wittu, which will work at ExxonMobil-operated Uaru field offshore Guyana.