Offshore engineering and construction specialist Subsea 7 has won a second construction contract for Shell’s Vito development.
With the first contract awarded in June by Shell for infield production flowlines, the latest contract comes from Enbridge for the transportation and installation of 50 miles of 18-inch oil export pipelines, 17 miles of 10-inch Gas Export pipelines and three miles of associated Steel Catenary Risers and pipeline end terminations.
Subsea 7 said the Enbridge contract was below Subsea 7’s disclosure threshold of USD 50 million.
For comparison, the Shell contract from June was described by Subsea 7 as a “sizeable” one, which is the term Subsea 7 uses to describe contracts valued between $50 million and $150 million.
“This second Vito contract underlines Subsea 7’s reputation in the Gulf of Mexico for providing cost-effective solutions even in the most challenging deepwater environments.”
Sitting some 150 miles south of New Orleans, Louisiana, Shell’s Vito development, approved in April 2018, will consist of eight subsea wells with deep (18,000 feet) in-well gas lift.
The development currently has an estimated, recoverable resource of 300 million boe. Vito will be Shell’s 11th deep-water host in the Gulf of Mexico and is currently scheduled to begin producing oil in 2021. Vito is expected to reach peak production of approximately 100,000 barrels of oil equivalent (boe) per day.
Subsea 7 said the offshore installation activities under the Enbridge contract would take place in 2019 and 2020.
Craig Broussard, Subsea 7 Vice President for the Gulf of Mexico, said: “This second Vito contract underlines Subsea 7’s reputation in the Gulf of Mexico for providing cost-effective solutions even in the most challenging deepwater environments.”
While the Enbridge award is Subsea 7’s second contract at the Vito development, it is also Subsea 7’s second contract announced on Wednesday. Namely, earlier during the day Subsea 7 announced a contract award with Tullow at the Jubilee field in Ghana.
This award was a sizeable contract for Subsea 7, meaning – as described above – it is worth between $50 million and $150 million.
Offshore Energy Today Staff