Subsea Integration Alliance, a joint venture between Subsea 7 and Schlumberger's OneSubsea, is anticipating final confirmation of a major contract award by Equinor 'in the near future," Subsea 7 said Tuesday.
Subsea 7 defines a major contract as being one where Subsea 7’s share of revenue is over USD 750 million.
The announcement by Subsea 7 follows a final investment decision by Equinor on the development of the Bacalhau field in Brazil, as announced earlier on Tuesday.
"If confirmed, it is envisaged that the project work scope will cover engineering, procurement, construction, and installation (EPCI) of the subsea pipelines (SURF) and production systems (SPS) for the Bacalhau field, located 185 kilometers from the coast of the state of São Paulo, Brazil. Offshore activities would take place from 2022 to 2023," Subsea 7 said.
Subsea Integration Alliance was last year awarded an exclusive contract by Equinor for the Front End Engineering Design (FEED) study for the SURF (Subsea, Umbilical, Risers and Flowlines) on the Bacalhau (formerly Carcará) project.
The JV at the time said that the awarded work was required to finalize the technical definition of the proposed field development prior to Equinor making the final investment decision.
Subsea 7 said at the time that the FEED and pre-investment were starting immediately, with an option for the execution phase under a lump-sum turnkey set-up which includes engineering, procurement, construction, and installation for the entire SURF and SPS scope.
The development will include 19 wells, approximately 130 km of rigid risers and flowlines and 35 km of umbilicals.
Equinor said Tuesday that the development of the Bacalhau field located in the Santos Basin would cost around $8 billion.
The Bacalhau field spreads across two licenses, BM-S-8 and Norte de Carcará. The FPSO at the field will be one of the largest FPSOs in Brazil with a production capacity of 220,000 barrels per day and two million barrels in storage capacity. The stabilized oil will be offloaded to shuttle tankers and the gas from Phase 1 will be re-injected in the reservoir.
The FPSO contractor MODEC will operate the FPSO for the first year. After that, Equinor plans to operate the facilities until the end of the license period.
Partners in Bacalhau are Equinor 40% (operator), ExxonMobil 40%, Petrogal Brasil 20% and Pré-sal Petróleo SA (Government Company, PSA Manager).