TechnipFMC has won an engineering, procurement, construction and installation (EPCI) target cost contract from Neptune Energy and its joint venture partners BP and JAPEX for the Seagull development oil project in the UK North Sea.

The contract, awarded under a Global Alliance Agreement between TechnipFMC and Neptune Energy, is for an initial five-year term with an option for further extension. TechnipFMC will construct and install wellheads, Xmas trees, umbilical, flowlines, four-slot manifold, as well as subsea wye structure and subsea control system. The offshore construction is scheduled to commence in the second quarter of 2020.

Neptune Energy UK managing director Pete Jones said: “Seagull is an exciting project and shows what can be achieved through a collaborative and innovative approach.

“Using existing infrastructure and unlocking production, it fully supports the objectives of the Maximising Economic Recovery (MER) UK strategy.

“As operator, it not only provides us with the opportunity to demonstrate our capability to safely execute a technologically-challenging subsea development, but underlines our commitment to growing our operational footprint on the UKCS.”

Seagull, a high-pressure, high-temperature development, is located in the Central North Sea, around 17km south of the ETAP Central Processing Facility (CPF) operated by BP. The Seagull facility will be tied back to the ETAP CPF partially using existing subsea infrastructure.

Gas from the project will be transported onshore to the CATS processing terminal at Teesside. Oil will be brought onshore through the Forties Pipeline System to the Kinneil Terminal at Grangemouth.

The project is expected to produce 50,000 barrels of oil equivalent (boe) (80% oil) per day across its 10-year design life. Proved and probable gross reserves have been estimated at 50 MMboe.

The Oil and Gas Authority (OGA) approved the Field Development Plan (FDP) for the Seagull project in March 2019.

Neptune, with a 35% equity interest, is the operator of Seagull project. BP has a 50% interest and JAPEX 15% stake in the project. Neptune acquired the 35% interest in Seagull from Apache North Sea in 2018.