AI assistant
Subsea 7 — Capital/Financing Update 2017
Mar 21, 2017
6244_iss_2017-03-21_865f413d-8b53-4303-be09-199968546846.html
Capital/Financing Update
Open in viewerOpens in your device viewer
Subsea 7 awarded contract offshore Gulf of Mexico
Subsea 7 awarded contract offshore Gulf of Mexico
Luxembourg - 21 March 2017 - Subsea 7 announced today
the award of a large(1) contract by BP as part of the
deepwater Mad Dog 2 development, located approximately
190 miles south of New Orleans.
The contract scope covers engineering, procurement,
construction and installation (EPCI) of the subsea
umbilicals, risers and flowlines (SURF) and associated
subsea architecture.
Subsea 7 has worked closely with BP to deliver a lump
sum integrated solution from design through to supply,
installation and commissioning. Furthermore, by
collaborating with OneSubsea, a Schlumberger company,
our Subsea Integration Alliance(2) partner that has been
awarded the Subsea Production Systems (SPS) contract,
additional areas of cost improvement have been identified
to provide greater cost certainty and reduced risk.
This has enabled the original cost of the Mad Dog 2
development to be substantially reduced.
Together the SURF and SPS contract awards are a
significant endorsement of our Alliance offering
and confirmation of the client's high level of
interest in this approach, and in Subsea 7 as a key
partner. This is also the first substantial project
in the US to use Subsea 7's Swagelining(3) polymer
lining technology.
Project management and engineering will take place
in Houston, Texas with support from Subsea 7's
Global Project Centre in London, UK. Offshore
installation activities are scheduled for 2019
and 2020.
Craig Broussard, Subsea 7 Vice President for the
Gulf of Mexico, said: "The Mad Dog 2 project is a
significant award for Subsea 7. It combines Subsea 7's
capability with our Subsea Integration Alliance value
offering to reduce risk and provide lower cost solutions
for BP. This project serves as a step-change of how
we work in the region and in Subsea 7's ability to
deliver superior value to the industry."
-Ends-
1.Contract term: Subsea 7 defines a large contract as
being between USD 300 million and USD 500 million.
2.Subsea Integration Alliance is a worldwide
non-incorporated partnership between OneSubsea,
Schlumberger, and Subsea 7 developed to jointly design,
develop, and deliver integrated subsea development
solutions through the combination of subsurface
expertise, subsea production systems (SPS), subsea
processing systems, subsea umbilicals, risers and
flowlines systems (SURF), and life of field services.
Its goal is delivering complementary technology and
expertise that help customers extend field life and
lower production costs, ensuring greater certainty of
recovery and return on the investment.
3.Swagelining Limited is a Subsea 7 company. It designs
and installs polymer lining systems for strategic
pipeline and riser systems. The company is at the
forefront of the drive to extend polymer lining
technology to provide internal corrosion protection
in carbon steel pipes, transporting corrosive or
erosive products under high pressure.
*****************************************************
Subsea 7 S.A. is a leading global contractor in seabed
-to-surface engineering, construction and services to
the offshore energy industry. We provide technical
solutions to enable the delivery of complex projects
in all water depths and challenging environments.
*****************************************************
Contact for investment community enquiries:
Isabel Green
Investor Relations Director
Tel +44 (0)20 8210 5568
www.subsea7.com
Contact for media enquiries:
Michelle Wainwright
Communications Manager, Gulf of Mexico
Tel +44 1224 526570 Mobile +44 (0)7876778370
www.subsea7.com