Subsea 7 Clinches Mad Dog 2 Deal from BP
Subsea 7 has been awarded a large contract by BP as part of the deepwater Mad Dog 2 development, located approximately 190 miles south of New Orleans.
The Oslo-listed SURF specialist defines a large contract as being between USD 300 million and USD 500 million.
The contract scope covers engineering, procurement, construction and installation (EPCI) of the subsea umbilicals, risers and flowlines (SURF) and associated subsea architecture.
Subsea 7 collaborated with OneSubsea, a Schlumberger company, and its Subsea Integration Alliance partner to identify additional areas of cost improvement to provide greater cost certainty and reduced risk. This has enabled the original cost of the Mad Dog 2 development to be substantially reduced, Subsea 7 noted.
In addition, the contract represents the first substantial project in the US to use Subsea 7’s Swagelining polymer lining technology.
Project management and engineering will take place in Houston, Texas with support from Subsea 7’s Global Project Centre in London, UK. Offshore installation activities are scheduled for 2019
Craig Broussard, Subsea 7 vice president for the Gulf of Mexico, said: “The Mad Dog 2 project is a significant award for Subsea 7. It combines Subsea 7’s capability with our Subsea Integration Alliance value offering to reduce risk and provide lower cost solutions for BP. This project serves as a step-change of how we work in the region and in Subsea 7’s ability to deliver superior value to the industry.”