Subsea 7 consortium wins offshore project contracts in Saudi Arabia

2 April 2019 (Last Updated September 17th, 2020 12:16)

A consortium comprising Subsea 7 has received two contracts from Saudi Aramco to provide engineering, procurement, construction and installation (EPCI) services for projects located in shallow water offshore Saudi Arabia.

Subsea 7 consortium wins offshore project contracts in Saudi Arabia
The consortium will perform EPCI of three oil production deck manifolds and subsea pipelines in Zuluf field and subsea pipelines in Berri field. Credit: © SUBSEA 7.

Subsea 7 has received two contracts from Saudi Aramco to provide engineering, procurement, construction and installation (EPCI) services for projects located in shallow water offshore Saudi Arabia.

The company secured the contracts in a consortium with L&T Hydrocarbon Engineering, a subsidiary of Larsen & Toubro as part of a long-term agreement (LTA) with Saudi Aramco.

Work under the contracts will include EPCI of three oil production deck manifolds and subsea pipelines in the Zuluf field and subsea pipelines in the Berri field. The company expects to begin offshore execution in 2020.

Subsea 7 Middle East vice-president David Lowther said: “Our assets are well suited to deliver this type of work and this award builds on our track record of project execution in the Kingdom of Saudi Arabia.”

In January 2019, the consortium won an EPCI order for the Zuluf and Berri Fields.

“Our assets are well suited to deliver this type of work and this award builds on our track record of project execution in the Kingdom of Saudi Arabia.”

In September 2018, Saudi Aramco awarded a contract to China Harbour Engineering Arabia to construct two drilling islands under Berri oil field Increment Program (BIP). The BIP programme will enable Saudi Aramco to expand the production of Arabian light crude oil from the Berri oil field by 250 thousand barrels per day (bpd).

Separately, Subsea 7 won a contract from Shell for the Arran gas field development in the UK North Sea, around 150 miles east of Aberdeen.

The contract requires Subsea 7 to provide project management, engineering, procurement, construction and installation of 60km of mechanically lined pipe-in-pipe production flowline.

The scope also covers subsea structures and tie-ins at the Arran and Columbus gas condensate fields and the Shearwater platform.

While the company started project management and detailed engineering at its office in Aberdeen, offshore activities are anticipated to begin in 2020. Although the specific value of the Shell contract was not disclosed, Subsea 7 noted that it is in the range of $100m-$200m.