Photo: Illustration; Seven Arctic (Source: Subsea 7)

Subsea 7 bags Scarborough project deal

Oslo Børs-listed Subsea 7 has secured a large contract to Subsea Integration Alliance with energy company Woodside for the Scarborough project offshore Australia.

Subsea 7 defines a large contract as being between $300 million and $500 million and the value refers to Subsea 7’s share of the contract.

The contract scope includes the engineering, procurement, construction, and installation (EPCI) of subsea pipelines and production systems.

The project will see the development of 45 kilometres of rigid flowlines, six flexible flowline risers, 42 kilometres of umbilicals and eight trees, as well as associated subsea equipment, in water depths of approximately 950 metres.

Following the initial front-end engineering and design (FEED) phase, awarded in January 2019, Subsea Integration Alliance, a partnership between Subsea 7 and OneSubsea, will now move on to the full EPCI phase.

The project management and design will take place in Perth with support from Subsea 7’s Global Project Centre’s offices in Malaysia, UK and France and various OneSubsea offices.

The alliance aims to commence the offshore activities from 2023 to 2025 using Subsea 7’s reel-lay and flex-lay vessels.

“This award is the result of a strong and collaborative early engagement process with Woodside, working with a high level of transparency and cooperation during the pre-tender and FEED phases”, said Olivier Blaringhem, CEO of Subsea Integration Alliance.

“It demonstrates the potential value of Subsea Integration Alliance and its optimised and integrated offering capacity. We look forward to working with Woodside to deliver the project successfully and safely while maximising the client’s production objectives”.

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On 22 November, the final investment decision was made for the Scarborough offshore gas project located in the North Carnarvon Basin, approximately 375 kilometres off the coast of Western Australia. The field is estimated to contain 11.1 trillion cubic feet of dry gas.

The development of the Scarborough field comprises 13 subsea wells, a semi-submersible floating production unit, and a 430km subsea export pipeline to the Woodside-operated Pluto LNG facility in Karratha in Western Australia.

Field development will be completed in two phases with eight wells drilled in Phase 1. The upstream production facilities will be installed to supply 8 Mtpa LNG and 180 TJ/day of domestic gas, with the first cargo expected in the 2026 calendar year.