Subsea 7 Wins US $60 Million Contract Offshore Nigeria

Subsea 7 has been awarded first major contract offshore Nigeria for Addax Petroleum Exploration (Nigeria) Ltd valued at approximately US $60 million.

The EPIC (Engineering, Procurement, Installation and Construction) project is for the development of the Okwori Field which comprises eight oil production wells (each with a gas lift facility) and one gas injection well for storage purposes. The offshore works are to be carried out as two separate campaigns; the first, scheduled for commencement in January 2005, will consist of the laying of all flowlines and umbilicals with five of the nine wells being tied-in to the in field FPSO (floating production storage and offloading vessel). The remaining four wells will be tied-in as a second campaign which is due to take place during the third quarter 2005.

The Okwori development lies in water depth ranging between 127 m and 146 m and is situated approximately 25 miles off Nigeria in the Gulf of Guinea in block OPL-90. The field is remote from any existing infrastructure.

The contract is based on utilizing one of Subsea 7's multi purpose support vessels for the execution of the workscope. The vessel will be used to install the flexible flowlines, risers and umbilicals and will undertake the tie-ins, protection and commissioning activities. Flexible flowlines and umbilicals will be transported to Nigeria by a heavy lift vessel, for inshore transfer to the installation vessel.

Jan Willem van der Graaf, Subsea 7's vice president for the West Africa region commented, 'This is an ideal project to start our Nigerian operations as Subsea 7 has a proven track record in this work. Following on from the award of the pipelay work on the Baobab project in Equatorial Guinea, we are quickly realizing our ambition of establishing Subsea 7 as a major service contractor throughout the West Africa region.'