Subsea 7 announced 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 and Julimar Development Phase 2, offshore Australia.
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 the 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.
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.