Norwegian seabed to surface engineering contractor Subsea 7 has been awarded a $100m contract by Royal Dutch Shell Plc for installation work in the Gulf of Mexico.
The contract will see Subsea 7 install 27 miles of 8 inch flowlines and steel catenary risers (SCRs) with associated structures such as pipeline end terminations (PLETs) and inline structures (ILS).
This is not the first project that Shell and Subsea 7 have worked on together. It is believed this most recent contract will help to further build upon their strong track record in the deepwater subsea construction market.
CEO of Subsea 7, Jean Cahuzac, has suggested the uncertainty of timing with regards to large scale projects still remains, as highlighted in the company’s Q3 2014 interim report released on 12th November.
“This trend was particularly evident in the third quarter when a number of projects were postponed to 2015 and beyond. The decline in crude oil prices, which began at the start of the third quarter, is adding to the uncertainty of our clients’ timing to proceed with offshore field development projects.”
The main offshore installation phase is expected to take place in Q2 and Q3 of 2016.
