Subsea engineering company Subsea 7 has secured a new contract from Shell for the Penguins Redevelopment Project in the UK North Sea.
The Penguins oil and gas field is situated nearly 150 miles north-east of the Shetland Islands.
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The scope of this engineering, procurement, construction and installation (EPCI) contract involves the fabrication of two Pipeline Bundles featuring pipe-in-pipe production flowlines, gas lift flowlines and control systems.
Furthermore, it includes the development and installation of a 9km-long, 16in gas export pipeline, flexible riser system, dynamic umbilical riser system and ancillary subsea tie-ins.
Subsea 7 UK and Canada Vice-President Jonathan Tame said: “Following the successful conclusion of a competitive design competition, we are pleased to have the opportunity to bring our extensive expertise to a project of this importance.
“In doing so it demonstrates Shell’s confidence in our value-adding solutions, and continues a successful North Sea collaboration that has been in place since 1984.”
The project management and engineering work are scheduled to start immediately, while offshore activities are expected to begin in 2020.
Shell took the final investment decision for the Penguins Redevelopment Project in January this year, following which the construction works of a floating production, storage and offloading (FPSO) vessel started.
At peak production level, this FPSO is expected to recover 45,000 barrels of oil equivalent a day.
The redevelopment programme includes drilling of eight additional wells at the field, which currently produces hydrocarbons from four existing drill centres.
Situated under 165m of water, the Penguins field was discovered in 1974 and was first developed in 2002.
Shell operates the field under an equally owned joint venture with ExxonMobil.
