Subsea 7 Confirms Three Contracts with Woodside

Subsea 7, The Offshore Installation and Construction Company, Confirmed That It Has Received Three Engineering, Procurement, Construction, And Installation Contracts With Woodside Since December 2018

Following previous reports, Subsea 7 has officially confirmed the contract for the first phase of the Senegal offshore (SNE Scarborough Project), offshore Australia (Scarborough), and the phase 2 development of Julimar, also in the offshore Australia.

The work is for the engineering activities necessary to finalize the technical definition of the proposed developments before Woodside and its joint venture partners make final investment decisions (FID), which Woodside is planning between mid-2019 and early 2020 depending on the project.

“Subsea 7 has already recognized the value of engineering studies in its Order Backlog. The value of the EPCI contracts will be recognized after the FID,
following the exercise of the relevant option. Assuming the FID is achieved on all three projects, they would total the equivalent of a significant award for
Subsea 7,” said Subsea 7.

The Julimar field is located approximately 200 km off the northwest coast of Australia. The full scope of work will be to design, procure, install and commission a gas transmission flowline of 18K of 18” (Corrosion Resistant Alloy) and an umbilical system. The Julimar project has been awarded to Subsea 7 as a standalone SURF contract and will be executed from Subsea 7’s office in Perth, with support from other Subsea 7 offices.

The SNE and Scarborough projects have been awarded to Subsea Integration Alliance, a global partnership between Subsea 7 and OneSubsea, with integrated design teams for SPS (subsea production systems) and SURF (subsea umbilicals, risers and flowlines).

The SNE is a deepwater oil field discovery located offshore, 100 km south of Dakar, Senegal. The proposed development scope includes up to 23 wells with 90 km of rigid pipelines using Subsea 7’s Swagelining pipeline and BuBi pipeline technologies. The integrated subsea project SNE will be led by Subsea.

The Scarborough field is located approximately 380 km off the northwest coast of Australia. Subject to FID by the Scarborough joint venture, the full project integrated scope of work would include the engineering, procurement, construction, and installation of subsea rigid pipelines, flexible risers, umbilicals, and associated infrastructure.

All three projects will be executed using pipeline vessels from Subsea 7’s fleet with offshore campaigns scheduled between 2021 and 2023.

Andy Woolgar, Vice President of Australia and New Zealand for Subsea 7, said: “These awards are based on our relationship with Woodside and our track record of successfully executed projects offshore Australia. They highlight the engineering expertise and strength of our business and our local workforce to execute integrated projects from pre-FEED to execution, as well as standalone projects.”

Gilles Lafaye, Vice President of Subsea 7 for Africa, said: “The granting of the Woodside SNE FEED contract to Subsea Integration Alliance reflects our expertise in integrated projects, and we look forward to strengthening our relationship with Woodside. Senegal is a new market for Subsea 7, and we are pleased to support the local oil and gas industry. We are looking forward to building a long-term and mutually beneficial partnership with Woodside on this project and future developments.”