TechnipFMC announced on Monday it has been awarded an integrated engineering, procurement, construction and installation (iEPCI) contract from Neptune Energy for the Seagull project, located in the UK North Sea.
The contract, which is said to be worth $75 million-$250 million, is the second call-off under the recently announced five-year strategic global alliance agreement between the two companies.
Under the latest deal, TechnipFMC will manufacture, deliver and install subsea equipment including production and water wash pipelines, umbilicals, subsea structures and control systems, it said. The offshore construction campaign is scheduled to start in the second quarter of 2020.
Arnaud Pieton, President Subsea at TechnipFMC, said, “We are delighted to partner again with Neptune Energy. Our alliance clearly demonstrates the importance and value of early engagement and collaboration as well as our ability to offer clients a full suite of services and global experience. We look forward to expanding our working relationship through the development of fields such as Seagull. As architects of our clients’ projects and through the adoption of collaborative working methods, we can bring more efficient, repeatable solutions to our clients that increase value, reduce engineering interfaces and time to market.”
Seagull is a high-pressure, high-temperature (HPHT) development located in approximately 90 meters water depth in the Central North Sea on UK licence P1622 Block 22/29C, 17 kilometers south of the BP-operated ETAP (Eastern Trough Area Project) Central Processing Facility (CPF). Comprising four subsea production wells, a new 5 kilometer pipe-in-pipe production line and a 17 kilometer control umbilical, Seagull outputs will travel via the Heron pipeline system to the ETAP development and on through the Forties pipeline system to Grangemouth, UK. Gas from the development will come onshore at the CATS processing terminal at Teesside, while oil will come onshore through the Forties Pipeline System to the Kinneil Terminal, Grangemouth.
The Field Development Plan (FDP) was submitted to and approved by the Oil and Gas Authority (OGA) in March this year.
Neptune Energy’s 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 Maximizing 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.”
Neptune, which acquired its 35% interest in Seagull from Apache in 2018, is the operator of the project. Its joint venture partners are BP with 50% and JAPEX with 15%.
The development is expected to initially produce around 50,000 barrels of oil equivalent (boe) per day (80% oil) across its 10-year design life. Proved plus probable gross reserves are estimated at 50 million boe.