Subsea 7 Wins Major African Contract
Oilfield services firm Subsea 7 announced Thursday that it has won a significant contract to supply and install subsea components to the development of the Lianzi field, offshore Congo and Angola.
Subsea 7 said that the contract award – which at $600 million is equivalent to around a tenth of its annual revenues – will "maximize the use of local personnel and resources in Congo and Angola".
A significant part of the design and fabrication will be executed in Angola's capital city, Luanda, with additional work carried out some 200 miles away in Lobito by Subsea 7's Angolan joint venture. All flow-lines will be spooled to the Seven Oceans rigid reel-lay ship at Subsea 7's Luanda base.
Subsea 7 said that its Angolan and Congolese personnel will join the offshore construction teams during the offshore phase, which is scheduled for the second half of 2014.
The firm added that the contract's technical specifications include a 12-inch wet, insulated production flow-line with direct electrical heating that will set a record for the deepest electrically-heated pipe.
"We are very pleased to be awarded this EPIC [engineering, procurement, installation and commissioning] contract including the design and procurement of the subsea facilities which fits perfectly with Subsea 7's capacity to deliver large scale projects. We look forward to working in close cooperation with Chevron to deliver the Lianzi project safely and to the highest standards," Olivier Carre, who is senior vice president for Subsea 7's Africa and Gulf of Mexico territory, said in a statement.
The contract news comes a week after Subsea 7 announced strong results for its second quarter. In the three months to June 30 the firm boosted its revenue 11.2 percent to $1.5 billion, while its 2Q net income improved 226 percent to $411 million.
On August 9, the day of its 2Q results, Subsea 7 said that its positive views of the market had not changed and that it expected the present high level of bidding activity to translate into market awards in the North Sea, Africa and Brazil.
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