Subsea 7 Wins $275M BC-10 Contract Offshore Brazil

Subsea 7 said that it has been awarded a contract valued at approximately US $275 million by the BC-10 Consortium, operated by Shell Brasil Ltda for the development of the BC10 fields, in the Campos Basin offshore Brazil.

The project will involve the installation of ten steel pipelines totalling approximately 109 km, as well as the fabrication and installation of six steel lazy-wave risers totalling approximately 18 km. The project also involves the transportation and installation of three dynamic and two static umbilicals totalling approximately 50 km, as well as the installation of four client supplied manifolds and the fabrication and installation of twenty-five rigid jumpers.

The BC10 fields lie approximately 120 km southeast of the city of Vitoria, in water depths between 1600 and 2000 meters.

Subsea 7's two new pipeline installation vessels, the Seven Oceans and the Seven Seas will undertake the offshore installation. Project management, engineering and procurement activities will commence immediately.

The Seven Oceans deepwater rigid pipelay vessel is due to be delivered to Subsea 7 in 2007. The vessel will have the ability to perform a wide variety of offshore and subsea operations. The high specification pipelay spread, being designed and manufactured in Holland, comprises main and piggyback reels and an adjustable lay ramp. The ramp has a top tension capability of 400 tonnes and hold back capability of 600 tonnes. The main reel has a storage capacity of 3500 tonnes.

The Seven Seas deepwater Flexlay and J-Lay vessel, will be delivered mid-2008. The vessel will have the ability to perform a wide variety of offshore and subsea operations in addition to its main pipelay role, including construction, ROV support and survey. The high specification pipelay spread, consists of two 1250t underdeck carousels with option of a 3000t carousel or equivalent powered reels on deck. The J-lay configuration uses a 400t tensioner in conjunction with the adjustable ramp with facilities for pipe storage, welding, coating and inspection. Up to 24" diameter pipe can be deployed in both Flexible and J-lay modes.

All Engineering and Project Management work will be conducted at Subsea 7's Brazilian offices and the fabrication of all rigid flowlines and jumpers will be conducted at their spool base in Brazil. This commitment to the BC10 project reinforces the importance placed by Subsea 7 and Shell on the utilization of local Brazilian content within their projects.

Victor Bomfim, Vice President for Subsea 7 in Brazil commented, "This is a hugely significant contract award for Subsea 7 since it will be the first time that our two flagship vessels will work together on the same project. We are extremely pleased at the confidence Shell has placed in Subsea 7 by awarding us such an important project and look forward to continuing our successful relationship in Brazil following the previous installation works on the Bijupira Salema field development in 2004."

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