Subsea 7 Secures Substantial Gulf of Mexico Deal

Subsea 7 Secures Substantial Gulf of Mexico Deal
Subsea 7 defines a 'substantial' project as being worth between $150 million and $300 million.

Subsea 7 has announced the award of a “substantial” project for subsea installation services related to Beacon Offshore Energy LLC’s Shenandoah Development, which is located in the Gulf of Mexico in water depths up to 6,300 feet.

The project covers the tie-back of four subsea wells to the Shenandoah host facility through a subsea manifold with dual flowlines and risers, Subsea 7 outlined. The company noted that the work scope includes engineering, procurement, construction, installation and commissioning of the subsea equipment including structures, umbilicals, and production and gas export flowlines, as well as the wet tow and hook-up of the semi-submersible FPS to the field and mooring system installation.

Project management and engineering will commence immediately at Subsea 7’s offices in Houston, Texas, according to the company, which added that fabrication of the flowlines and risers will take place at Subsea 7’s spoolbase in Ingleside, Texas, with offshore operations scheduled for 2024. Subsea 7 defines a “substantial” project as being worth between $150 million and $300 million.

“We are pleased to have been selected as a partner for the delivery of the Shenandoah development,” Craig Broussard, the vice president for Subsea 7 U.S., said in a company statement.

“This project allows Subsea 7 to demonstrate the full capacity of our offering, including our extensive involvement in mooring and installation of host facilities, EPIC activities related to the flowline system, and utilizing our industry leading experience and welding capabilities to support the development of high-pressure fields,” he added in the statement.

“We look forward to building on the collaborative approach demonstrated by the Shenandoah project to form a long-term cooperative relationship in support of Beacon Offshore Energy’s future growth plans,” Broussard went on to say.

Subsea 7’s Beacon Offshore Energy deal is its first contract award announcement in 2022. The company announced a spate of awards last year, including a “large” contract in December for the Subsea Integration Alliance by Woodside for the Scarborough project. The Subsea Integration Alliance is a non-incorporated strategic global alliance between Subsea 7 and OneSubsea, the subsea technologies, production and processing systems division of Schlumberger. A “large” deal is defined by Subsea 7 as being worth between $300 and $500 million.

Also in December 2021, Subsea 7 announced a “sizeable” contract by Aker BP for the Hanz field development in the North Sea and in October 2021 the company announced a “very large” award by Petrobras for new long-term day-rate contracts for the pipelay support vessels Seven Waves, Seven Rio and Seven Sun. The company also announced a “major” contract in October by Turkish Petroleum for the Sakarya field development offshore Turkey.

A “very large” contract has a combined value of between $500 million and $750 million and a “major” contract is one where Subsea 7’s share of revenue is over $750 million, the company outlined.

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