Petrobras Awards Sepia Phase 1 Contract
Petrobras has awarded McDermott International, Inc. an engineering, procurement, construction and installation (EPCI) contract for subsea risers and flowlines for the first phase of the Sepia field project, McDermott reported Tuesday.
“McDermott has had a strong presence in Brazil going back more than four decades, and we see tremendous opportunity for growth in the region,” Mark Coscio, McDermott’s senior vice president for North, Central and South America, said in a written statement emailed to Rigzone. “We will use our first-class assets and proven track record to deliver the highest levels of safety, quality and cost-efficiency during the first phase of this important greenfield development.”
Located in Block BM-S-24 in the Santos Basin 174 miles (280 kilometers) offshore the Rio de Janeiro coastline, the Sepia pre-salt development is expected to achieve first oil in 2021, McDermott stated. According to the company, the Phase 1 project scope includes detailed engineering, surveys, supply, installation and pre-commissioning of:
- Rigid pipelines
- Buoyance modules
- Strakes and riser mooring systems for seven riser wells
Under the first phase, seven wells – three producers and four injector wells – will be linked to the Carioca floating production, storage and offloading (FPSO) vessel, McDermott noted. The company, which reported that engineering work will start “immediately” from its Rio de Janeiro office with support from its Houston office, stated that installation will use five vessels and will take place in up to 7,021 feet (2,140 meters) of water. The full Sepia development will include an additional eight wells, McDermott added.
Petrobras will charter the Carioca FPSO under a 21-year deal from MODEC, Inc., which is constructing the vessel. According to MODEC’s website, the FPSO will be capable of processing 180,000 barrels per day of crude oil and 212 million cubic feet per day of natural gas. Moreover, the vessel will boast 1.4 million barrels of oil storage capacity.
McDermott did not specify the contract amount, but it noted the value of the Phase 1 Sepia award ranges from USD $250 million to USD $500 million.
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