Subsea 7 has secured what it says is a “substantial” contract to provide subsea installation services for Beacon Offshore Energy’s Shenandoah development in the Gulf of Mexico.
The project covers the tie-back of four subsea wells to the Shenandoah host facility through a subsea manifold with dual flowlines and risers.
The work scope includes engineering, procurement, construction, installation (EPIC) and commissioning of the subsea equipment including structures, umbilicals, and production and gas export flowlines.
Subsea 7 is also in charge of the wet tow and hook-up of the semi-submersible floating production system (FPS) to the field and mooring system installation.
The contract is said to be worth between $150 million and $300 million and will be executed in water depths of up to 6,300 feet.
Project management and engineering will commence immediately at the company’s offices in Houston, Texas, with the fabrication of the flowlines and risers taking place at the spoolbase in Ingleside. Offshore operations are scheduled for 2024.
“This project allows Subsea 7 to demonstrate the full capacity of our offering, including our extensive involvement in mooring and installation of host facilities, EPIC activities related to the flowline system, and utilizing our industry leading experience and welding capabilities to support the development of high-pressure fields,” said Craig Broussard , vice president for Subsea 7 U.S.
“We look forward to building on the collaborative approach demonstrated by the Shenandoah project to form a long-term cooperative relationship in support of Beacon Offshore Energy’s future growth plans.”
Shenandoah is located 160 miles off the coast of Louisiana in the Walker Ridge area of the Gulf of Mexico. Beacon is the operator of the project following its acquisition of interest from LLOG. The co-owner is ShenHai, a subsidiary of Israel’s Navitas Petroleum.
South Korea’s Hyundai Heavy is in charge of the design, procurement, construction, and delivery of the project’s FPS and its installation. U.S. energy company Williams will provide offshore natural gas gathering and transportation services and onshore natural gas processing services to the development.
Shenandoah is expected to come online as early as late 2024.