Subsea 7 Wins Contract for Broom Field Development

Subsea 7 has been awarded a 30 million Letter of Intent from DNO Britain Limited for the Broom field development in the UK North Sea. Approval to develop the field as a subsea tieback to the Heather Alpha platform with a first oil target of June 2004 was recently granted by the Department of Trade and Industry.

The project consists of the installation of a 7km pipeline bundle incorporating two eight inch production and one eight inch water injection flowline, one gas lift flowline, one three inch scale squeeze flowline and electro/hydraulic/control/service cables and tubing.

The pipeline bundle product, in which multiple flowlines are contained within a single carrier pipe, is unique to Subsea 7.

The work scope includes the tie-in of the first five planned wells (three production and two water injection) and installation of four flexible and one dynamic umbilical catenary riser between the bundle towhead and Heather platform. The Heather platform will be the host facility for the proposed tie-back which in turn will export the processed oil to Ninian through an existing 16 inch oil export pipeline. The work will also include the replacement of a section of the existing 16 inch riser and Ninian oil export pipeline and will utilise several of Subsea7's in-house ROV, diving and support vessels.

Fabrication work will commence in the fourth quarter 2003 at Subsea 7's bundle fabrication site at Wick. The project will be manning up in preparation for the job and envisages employing approximately 20 new people bringing the number of personnel on site to 55. In addition, subcontractors are likely to employ an additional 50 people from the Wick and Caithness area.

Robin Davies, vice president UK of Subsea 7 stated, "This award highlights Subsea 7's unique 'bundle' product capability and provides a cost effective solution for this subsea development. The launch of the Broom bundle will bring the total number of bundles launched from our facility in Wick to 52, an indicator of the success of this product."

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