Subsea 7 Wins EPIC Contract from Petrobras

Subsea 7 has been awarded an EPIC (engineering, procurement, installation and construction) contract from Petrobras. The contract, valued in excess of US $250m, is for pipeline installation in the deeper part of the development program for the re-distribution of oil and gas transport within the Campos Basin known as "PDEG (B)".

The workscope includes engineering, procurement, fabrication, installation and pre-commissioning of six pipelines, including both 10" and 12" diameter lines totalling 168km in length, all located in the Campos Basin. The installation scope includes pre-lay surveys along the proposed routes, full-time ROV monitoring of the touchdown point and a full as-built survey once the pipe has been tested and stabilized. The pre-commission scope consists of flooding, pressure testing, gauging and drying, and in the case of the gas lines, filling with Nitrogen. Several of the pipelines to be installed cross over existing lines which will require support structures to be pre-installed.

The Campos Basin is located offshore the state of Rio de Janeiro and operations on this project will take place in water depths of up to 1410 meters. The project will be executed, engineered and supported from the Subsea 7 base in Niteroi in the state of Rio de Janiero. Offshore work will commence in late 2005 with the installation of a single flexible pipeline using a combination of Lochnagar and Kommandor 3000, the Subsea 7 deepwater flexible installation vessels currently based in Brazil. The remainder of the lines are rigid steel and will be laid using the Skandi Navica in 2006 and 2007. The pipeline spools will be welded and prepared at the Subsea 7 Ubu base in the state of Esprito Santo close to Vitoria, Brazil.

Victor Bomfim, Vice President for Subsea 7 do Brasil, stated, "We are delighted that Subsea 7 is again playing a key role with Petrobras to further develop the reserves of the Campos basin. Utilising our capabilities in deepwater installation, this award supports our goal to establish Subsea 7 as a leading underwater construction company globally".

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