Subsea 7 to net up to $750 million for Sangomar job
Australia’s Woodside has awarded a very large contract to Subsea Integration Alliance, a partnership between Subsea 7 and Schlumberger’s OneSubsea, for the Sangomar Field Development Phase 1 project located offshore Senegal.
Subsea 7 defines a very large contract as being between $500 million and $750 million. This value range refers to Subsea 7’s share of the consortium contract and will be included in Subsea 7’s order intake for the first quarter 2020.
This contract was initially awarded in December 2018 subject to final investment decision, which has now occurred.
Announcing the contract, Subsea 7 said on Friday that the project work scope covers the engineering, procurement, construction, transportation and installation of the SURF system and associated subsea production systems (SPS). The development will include 23 wells, 107 km of rigid flowlines, 28 km of flexible risers and jumpers, and 45 km of umbilicals in water depths between 700 metres and 1400 metres.
Offshore activities will take place from 2021 to 2023 using Subsea 7’s reel-lay, flex-lay, and light construction vessels, Subsea 7 said.
The Subsea Integration Alliance team established during the Front End Engineering Design (FEED) phase will now transition into the full EPIC phase based at Subsea 7 Global Projects Center (GPC) in Sutton, UK. SURF engineering will be performed by Subsea 7 GPC centers in Sutton and Suresnes, France. A base in Senegal will support the offshore campaign and conduct site receipt testing and equipment storage.
Gilles Lafaye, Subsea 7’s Vice President Africa Region, said: “We are delighted to expand our operations to Senegal adding to our network of local presences in West Africa.”
Stuart Fitzgerald, Deputy CEO of Subsea Integration Alliance, said: “Subsea 7 and OneSubsea, through our Subsea Integration Alliance, have been working closely with Woodside since before the FEED award. This award reflects our successful experience of previous projects delivered by the Alliance and a strong relationship built over many years with Woodside.”
Woodside has also awarded a contract to Japan’s MODEC to supply a floating production storage and offloading vessel for the Sangomar field development Phase 1 project.