Brazil: Bacalhau FEED deal goes to Subsea Integration Alliance
Subsea Integration Alliance, a partnership between Subsea 7 and Schlumberger’s OneSubsea, has won an exclusive contract for a front-end engineering design (FEED) study on Equinor’s Bacalhau project, offshore Brazil.
Equinor on Thursday awarded Front End Engineering and Design (FEED) contracts with early commitments and pre-investments for phase 1 of the Bacalhau (formerly Carcará) area in Brazil. Subsea Integration Alliance, formed by Subsea7 and OneSubsea, has been selected for the SURF contract and MODEC for the FPSO contract.
In a separate statement on Thursday, Subsea 7 said that the awarded work was required to finalize the technical definition of the proposed development prior to Equinor making final investment decisions (FID) in late 2020.
According to the company, the contract is based on a two-step award. The FEED and pre-investment are starting immediately, with an option for the execution phase under a lump-sum turnkey set-up which includes engineering, procurement, construction, and installation for the entire SURF and SPS scope.
The development will include 19 wells, approximately 130 kilometers of rigid risers and flowlines and 35 kilometers of umbilicals. Subsea Integration Alliance will also be responsible for subsequent life of field support, representing a fully integrated contract model across the entire field lifecycle, from engineering, early engagement, to after-sales services.
The company added that the value of the EPCI contract would only be recognized by Subsea 7 in its order backlog after FID, and will represent a major project award, which Subsea 7 defines as a contract over $750 million.
Project management and engineering will take place in Rio de Janeiro with support from Subsea 7’s Global Project Centre in UK, France, and various OneSubsea offices. Offshore installation activities are scheduled for 2022 and 2023.
The Bacalhau field, formerly known as Carcará, is located 185 kilometers from the coast of the State of São Paulo, in water depths of 2050 meters and is Brazil’s first-ever integrated SPS and SURF project.
Stuart Fitzgerald, the deputy CEO of Subsea Integration Alliance, said: “The award to Subsea Integration Alliance of the FEED contract for the Bacalhau project builds on our early engagement expertise and successful track record of major integrated projects.
“It underlines the breadth and strength of our product portfolio, quality of onshore and offshore assets and our extensive project management and engineering capabilities in Brazil and worldwide. We look forward to supporting Equinor in this and future developments.”
Marcelo Xavier, Subsea 7’s VP in Brazil, added: “This contract award builds on our successful track record of solutions developed for deepwater projects in Brazil and demonstrates our capability to maximize asset value through early engagement and an integrated approach.”
The partners in Bacalhau field are Equinor, the operator with a 40% stake, while the other partners are ExxonMobil with 40%, Petrogal Brasil with 20%, and Pré-sal Petróleo SA as a non-investor government agency.
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