TechnipFMC to deliver subsea equipment for Neptune’s North Sea project

French oilfield services provider TechnipFMC has won a contract to build and install subsea equipment for Neptune Energy’s Seagull offshore oil development project in the UK North Sea.

“The […] contract was awarded under a Global Alliance Agreement between TechnipFMC and Neptune Energy which was signed for an initial five-year term with options for further extensions,” Neptune Energy said on Monday, without disclosing the financial details.

TechnipFMC will construct and install the wellheads, Xmas trees, an umbilical, flowlines, a four-slot manifold, a subsea wye structure, and a subsea control system. The offshore construction campaign is scheduled to start Q2 2020.

Seagull is a high pressure, high-temperature development located in the Central North Sea on UK license P1622 Block 22/29C, 17km south of the BP Operated ETAP Central Processing Facility (CPF). Seagull will be tied back to the ETAP CPF partially using existing subsea infrastructure. Gas from the development will come onshore at the CATS processing terminal at Teesside, while oil will come onshore through the Forties Pipeline System to the Kinneil Terminal, Grangemouth.

Related: Neptune sanctions Seagull project in North Sea

Neptune Energy’s UK Managing Director, Pete Jones, said: “Seagull is an exciting project and shows what can be achieved through a collaborative and innovative approach. Using existing infrastructure and unlocking production, it fully supports the objectives of the Maximising Economic Recovery (MER) UK strategy.”

The Seagull development is expected to initially produce around 50,000 barrels of oil equivalent (boe) per day1 (80 per cent oil) across its 10-year design life. Proved plus probable gross reserves are estimated at 50 million boe.

The Field Development Plan (FDP) was submitted to and approved by the Oil and Gas Authority (OGA) in March 2019.

Neptune is the operator of Seagull and has a 35 per cent equity interest, with partners being BP with 50 per cent and JAPEX with 15 per cent. Neptune acquired its 35 per cent interest in Seagull from Apache North Sea Limited in 2018.

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