Continental Focus, International Reach

Subsea 7 Wins SNE Contract

Thursday, March 7, 2019

Subsea 7 was awarded three contracts by Australian firm Woodside. Each contract is for engineering studies and includes an option for Woodside to proceed to the execute phase with an EPCI contract. One of the contracts is for work in Africa, specifically for the SNE Field Development-Phase 1 offshore Mauritania/Senegal.

The awarded work is for engineering activities required to finalize the technical definition of the proposed developments prior to Woodside and its joint venture partners making FID, which Woodside is targeting for between mid-2019 and early 2020, depending on the project.

Subsea 7 has already recognized the value of the engineering studies in its Order Backlog. The value of the EPCI contracts will be recognized after FID, following exercise of the relevant option. Assuming FID is reached on all three projects, they would in aggregate be equivalent to a major project award for Subsea 7.

The SNE and Scarborough projects were awarded to Subsea Integration Alliance, a global partnership between Subsea 7 and OneSubsea, with integrated SPS (subsea production systems) and SURF (subsea umbilicals, risers and flowlines) project teams.

SNE is a deepwater oil field discovery located offshore, 100 km south of Dakar, Senegal. The proposed development scope includes up to 23 wells with in excess of 90 km of rigid pipelines featuring Subsea 7’s Swagelining pipeline and BuBi pipeline technologies. The SNE subsea integrated project will be led from Subsea 7’s London office, with support from other Subsea 7 and OneSubsea offices.

Gilles Lafaye, Vice President Africa for Subsea 7, said, “The award of the SNE FEED contract by Woodside to Subsea Integration Alliance reflects our expertise in integrated projects and we look forward to strengthening our relationship with Woodside. Senegal is an exciting new market for Subsea 7 and we are pleased to support the local oil and gas industry. We look forward to building a long-term and mutually beneficial partnership with Woodside on this project and in future developments.”