U.S. oil & gas company Chevron has awarded Subsea7 with a contract for subsea equipment and associated infrastructure for the third stage of its Gorgon gas project offshore Western Australia.
Subsea7 said that the contract for Gorgon Stage 3 is substantial, meaning it is worth between $150 million and $300 million. The contract covers project management, engineering, procurement, fabrication, transportation, installation and pre-commissioning of subsea equipment and associated infrastructure at 1,350 meters of water depth.
Project management and engineering work will begin right away from Subsea7’s office in Perth, Australia, with support from Kuala Lumpur, Malaysia, and Paris, France. Offshore operations are expected in 2028.
“This project marks an important milestone and reinforces our long-term strategic engagement with Chevron,” said David Bertin , Senior Vice President for Subsea7 Global Projects Centre East.
“ Building on our local and international capability and experience, we look forward to working collaboratively with Chevron Australia – focusing on safety and quality to optimise reliability, technical integrity and offshore operations – to successfully deliver the Gorgon Stage 3 subsea installation .”
The Chevron-operated Gorgon project is a joint venture between the Australian subsidiaries of Chevron (47.33%), ExxonMobil (25%), Shell (25%), Osaka Gas (1.25%), MidOcean (1%) and JERA (0.417%).
The final investment decision (FID) on the Gorgon Stage 3 was announced earlier this month, followed by TechnipFMC securing a contract for the delivery of subsea production systems for the project.
The development entails the installation of three manifolds and a 35-kilometer production flowline among other associated infrastructure, with six wells expected to be drilled in the two fields about 100 kilometers northwest of Barrow Island in water depths of about 1,300 meters.
As part of the original development plan for Gorgon, which has the capacity to produce 300 terajoules per day of gas for the WA market and 15.6 million tons of LNG per year, Gorgon Stage 3 is the first in a series of planned subsea tie-backs.