Melissa Sustaita, 30 December 2015
Subsea 7 inked a contract estimated to be between US$50 million to $150 million with Burullus Gas Co. for the platform extension and tie-in on the first phase of BP's West Nile Delta development of the Taurus and Libra fields, offshore Egypt.Subsea 7's Cairo office and Subsea 7's Global Projects Centre in London will immediately begin engineering and project management work on the project.
Fabrication of the deck extension and spools will be carried out at the Petrojet Maadia yard near Alexandria. Offshore work is scheduled to commence in 2H 2016 using Subsea 7's Rockwater 2 as the main hook-up and accommodation vessel with Seven Borealis performing the offshore lift of the platform extension and the heavy construction vessel, Seven Arctic, installing the umbilical, Subsea 7 said.
The $12 billion West Nile Delta project involves the development of 5 Tcf of gas resources and 55 MMbbl of condensates. Production from the project is expected to be around 1.2 Bcf/d, equivalent to about 25% of Egypt’s current gas production. All the produced gas will be fed into the country’s national gas grid. Production is expected to start in 2017.
"This contract recognizes the value we bring to our clients through early engagement to engineer, design and deliver cost-effective solutions for complex field developments. We look forward to expanding our presence in Egypt and building a long, successful and collaborative relationship with Burullus," Oeyvind Mikaelsen, executive VP southern hemisphere and global projects said.
At the end of July, Subsea 7 won a contract worth about $500 million from BP for the development of the Taurus and Libra subsea fields offshore Alexandria, Egypt, in the first phase of Egypt's West Nile Delta.
Earlier this month, BP Egypt completed the acquisition of 22.75% in the North Alexandria Concession and 2.75% in the West Mediterranean Deep Water Concession from Hamburg-based DEA Deutsche Erdoel, which brought the company's working interest in both concessions of the West Nile Delta project to 82.75%.
In mid-May, BP increased its interest in the West Nile Delta project in Egypt after partner DEA farmed down its stake, which left DEA holding 17.25% in North Alexandria and West Mediterranean Deepwater. DEA formerly held 40% in North Alexandria, and 20% in West Mediterranean Deepwater.
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