Shell Subsea Contract Goes to TechnipFMC
Shell has awarded TechnipFMC an integrated engineering, procurement, construction and installation (iEPCI) contract for its PowerNap project in the deepwater Gulf of Mexico (GOM), TechnipFMC reported Thursday.
As Rigzone reported early this month, PowerNap will be a subsea tie-back to the Shell-operated Olympus production hub that the supermajor co-owns with BP. The deepwater discovery is located in the GOM Mississippi Canyon area approximately 150 miles (240 kilometers) from New Orleans in roughly 4,200 feet (1,280 meters) of water.
The iEPCI contract calls on TechnipFMC to design, manufacture and install subsea hardware for three wells, the contract recipient noted in a written statement emailed to Rigzone. Hardware includes subsea tree systems, subsea distribution controls, topside controls, flying leads and connectors, TechnipFMC pointed out. It added that it will supply 20 miles (32 kilometers) of production umbilical and flowlines.
“We are very pleased to have been awarded this iEPCI contract for the Shell PowerNap project,” Arnaud Pieton, president of TechnipFMC’s Subsea unit, stated. “We look forward to executing the scope of work and to further expanding our 25-year successful relationship with Shell and our deep water portfolio in the Gulf of Mexico.”
Shell estimates that PowerNap, which is slated to begin production in late 2021, will produce up to 35,000 barrels of oil equivalent per day and break-even below $35 per barrel.
Although it did not specify the contract amount, TechnipFMC stated that it ranges from $75 million to $250 million.
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