Subsea 7 S.A. announces the award of three contracts by Woodside since December 2018. Each contract is for engineering studies and includes an option for Woodside to proceed to the execute phase with an engineering, procurement, construction and installation (EPCI) contract.

The contracts are for:

  • SNE Field Development-Phase 1, offshore Senegal (SNE)1
  • Scarborough Project, offshore Australia (Scarborough)
  • Julimar Development Phase 2, offshore Australia (Julimar)

The awarded work is for engineering activities required to finalize the technical definition of the proposed developments prior to Woodside and its joint venture partners making final investment decisions (FID), which Woodside is targeting for between mid-2019 and early 2020 depending on the project. Subsea 7 has already recognized the value of the engineering studies in its Order Backlog. The value of the EPCI contracts will be recognized after FID, following exercise of the relevant option. Assuming FID is reached on all three projects, they would in aggregate be equivalent to a major(2) project award for Subsea 7.

The Julimar field is located approximately 200km offshore North West Australia. The full scope of work will be to design, procure, install and commission a 22km 18” Corrosion Resistant Alloy (CRA) gas transmission flowline and an umbilical system. The Julimar project was awarded to Subsea 7 as a stand-alone SURF contract and will be led from Subsea 7’s Perth office, with support from other Subsea 7 offices.

The SNE and Scarborough projects were awarded to Subsea Integration Alliance(3), a global partnership between Subsea 7 and OneSubsea, with integrated SPS (subsea production systems) and SURF (subsea umbilicals, risers and flowlines) project teams.

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 in excess of 90km of rigid pipelines featuring Subsea 7’s Swagelining pipeline and BuBi pipeline technologies. The SNE subsea integrated project will be led from Subsea 7’s London office, with support from other Subsea 7 and OneSubsea offices.

The Scarborough Field is located approximately 380km offshore North West Australia. Subject to FID by the Scarborough joint venture, the full integrated project scope of work would include the engineering, procurement, construction and installation of subsea rigid pipelines, flexible risers, umbilicals and associated infrastructure. The Scarborough integrated project will be led from OneSubsea’s Perth office, with support from other Subsea 7 and OneSubsea offices.

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

Andy Woolgar, Vice President Australia and New Zealand for Subsea 7, said: “These awards build on our relationship with Woodside and our successful track record of projects executed offshore Australia. They highlight the engineering expertise and strength of our business and our local workforce to perform integrated projects from pre-FEED to execution as well as standalone projects.” Gilles Lafaye, Vice President Africa for Subsea 7, said: “The award of the SNE FEED contract by Woodside to Subsea Integration Alliance reflects our expertise in integrated projects and we look forward to strengthening our relationship with Woodside. Senegal is an exciting new market for Subsea 7 and we are pleased to support the local oil and gas industry. We look forward to building a long-term and mutually beneficial partnership with Woodside on this project and in future developments.”

(1) Woodside is Operator of the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) joint venture comprising Capricorn Senegal Limited (a subsidiary of Cairn Energy), Woodside Energy (Senegal) B.V., FAR Ltd and Petrosen (the Senegal National Oil Company).

(2) Subsea 7 defines a major contract as being over USD 750 million.

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