Schlumberger Unit and Subsea 7 Win Pioneering Brazil Contract

Schlumberger Unit and Subsea 7 Win Pioneering Brazil Contract
Offshore installation for Brazil's first integrated SPS and SURF project could start in two years. IMAGE SOURCE: Equinor

Equinor has awarded an alliance between Subsea 7 and Schlumberger’s OneSubsea unit a contract for Brazil’s first integrated subsea production system (SPS) and subsea umbilicals, risers and flowlines (SURF) project, Schlumberger reported recently.

Under the contract, the Subsea Integrated Alliance will perform the front-end engineering design (FEED) for Equinor’s Bacalhau project offshore Brazil. Previously known as Carcará, the Bacalhau Field is located in 6,756 feet (2,050 meters) of water 115 miles (185 kilometer) offshore Ilhabela in Brazil’s Sao Paulo state, Schlumberger noted in a written statement emailed to Rigzone.

“The award comes on the back of a design competition where we have demonstrated our ability to maximize asset value through our integrated field development service,” commented Henning Berg, CEO of Subsea Integrated Alliance LLC. “This involves dynamically connecting reservoir, production and economic models with well, subsea infrastructure and topside facilities in a single, collaborative environment using the Subsea Planner collaborative field development solution.”

According to Schlumberger, Equinor awarded the contract on a two-step basis. The firm explained that the FEED and preinvestment are starting now. Pending the outcome of Equinor’s planned investment decision for the Bacalhau project at the end of this year, the contract also includes an option for the execution phase under a lump-sum turnkey setup that includes engineering, procurement, construction and installation for the entire SURF and SPS scope, Schlumberger added. Moreover, Subsea Integrated Alliance reportedly would oversee life-of-field support.

In a separate written statement, Subsea 7 noted the 19-well Bacalhau field development will require approximately 81 miles (130 kilometers) of rigid risers and flowlines and 22 miles (35 kilometers) of umbilicals.

“The award to Subsea Integration Alliance of the FEED contract for the Bacalhau project exemplifies our commitment to in-country value for Brazil, enabling regional efficiency and performance while increasing local content and alignment with Equinor’s strategic priorities,” stated OneSubsea President Don Sweet.

Subsea 7 stated that project management will occur in Rio de Janeiro with support from the U.K., France and other locations. It added that offshore installation activities are scheduled for 2022 and 2023.

“This contract award builds on our successful track record of solutions developed for deepwater projects in Brazil and demonstrates our capability to maximize asset value through early engagement and an integrated approach,” remarked Marcelo Xavier, Subsea 7’s vice president for Brazil.

Subsea 7 classified the project as “major,” which in the company’s parlance means a value exceeding US$750 million.

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