Shell hands out Penguins award to Subsea 7

Subsea engineering and construction services firm Subsea 7 has been awarded a contract by Shell for the Penguins redevelopment project, located approximately 150 miles north-east of the Shetland Islands.

The engineering, procurement, construction and installation (EPCI) contract incorporates the fabrication of two pipeline bundles containing pipe-in-pipe production flowlines, gas lift flowlines and control systems, Subsea 7 said on Monday.

Additionally, this award includes the fabrication of a 9km 16″ gas export pipeline, flexible riser system, dynamic umbilical riser system and associated subsea tie-ins.

Project management and engineering work will start immediately in Aberdeen, with support from Subsea 7’s specialist technical Pipeline Group in Glasgow. Offshore activities are scheduled for 2020 and 2021, the company said.

Jonathan Tame, Vice President UK & Canada, said: “Following the successful conclusion of a competitive design competition, we are pleased to have the opportunity to bring our extensive expertise to a project of this importance. In doing so it demonstrates Shell’s confidence in our value-adding solutions, and continues a successful North Sea collaboration that has been in place since 1984.”

Shell sanctioned the Penguins project last January, authorizing the construction of an FPSO, the first new manned installation for Shell in the northern North Sea in almost 30 years.

Fluor was awarded the FPSO engineering, procurement and construction contract. In addition, Sevan Marine was awarded a contract to provide the technology for the circular FPSO and provide technical support during the design phase of the project, making it the 6th Sevan Marine-designed cylindrical FPSO to be built. The FPSO will be designed to operate continuously for 20 years.

It is worth reminding that Sevan Marine last week entered into an agreement to divest a substantial part of its business to Singapore’s Sembcorp Marine. Under this deal, the Shell Penguins License agreement was intended to be transferred to Sembcorp Marine.

The Penguins field currently processes oil and gas using four existing drill centers tied back to the Brent Charlie platform. The redevelopment of the field, required when Brent Charlie ceases production will see an additional eight wells drilled, which will be tied back to the new FPSO vessel. Natural gas will be exported through the tie-in of existing subsea facilities and additional pipeline infrastructure.

The field is a joint venture between Shell (50% and operator) and ExxonMobil (50%).

Offshore Energy Today Staff