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Subsea 7 awarded contract offshore US Gulf of Mexico

21/12/2018

Subsea 7 S.A. announces the award of a sizeable(1) SURF (subsea umbilicals, risers and flowlines) contract by BP for the Manuel project in the US Gulf of Mexico. Project execution will be delivered by Subsea Integration Alliance (SIA)(2), which is a partnership between Subsea 7 and OneSubsea Schlumberger, to provide BP with a fully integrated solution. 

The Manuel project comprises a two well development tie-back to the Na Kika production facility, working at water depths of up to 1,900 meters. The project’s SURF workscope includes engineering, procurement, construction and installation (EPCI) of an electrically heat traced flowline (EHTF) and a steel catenary riser and all associated subsea structures as well as front-end engineering and design (FEED). Offshore operations are due to commence in the fourth quarter of 2019. 

Early engagement between SIA and BP has enabled the project to be the first in the US to use Subsea 7’s EHTF technology, which enables cost-effective longer tie back solutions. 

Craig Broussard, Subsea 7 Vice President for the Gulf of Mexico, said: 
“The award of the Manuel project is a clear demonstration of the power of collaboration between all stakeholders. Together with our SIA partner, OneSubsea, and the BP team, we have produced an optimised solution that will see the deployment of EHTF technology. This has enabled us to reduce the total cost of the project, while in parallel accelerating the first oil target date to just 24 months from discovery. SIA has been able to deliver this accelerated schedule by removing critical path challenges through early engagement, on both SPS and SURF scopes of work. This has ultimately allowed us to achieve a solution that creates sustainable value for all parties despite a challenging cost environment.”
 
(1) Subsea 7 defines a sizeable contract as being between USD 50 million and USD 150 million 

(2) Subsea Integration Alliance is a worldwide non-incorporated partnership between OneSubsea, Schlumberger and Subsea 7 developed to jointly design, develop, and deliver integrated subsea development solutions through the combination of subsurface expertise, subsea production systems (SPS), subsea processing systems, subsea umbilicals, risers and flowlines systems (SURF), and life of field services. Its goal is delivering complementary technology and expertise that help customers extend field life and lower production costs, ensuring greater certainty of recovery and return on the investment.

KeyFacts Energy Industry Directory: Subsea 7

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