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US Gulf deepwater subsea installation contract awarded
Subsea 7 has gained a contract to design, manufacture and install subsea structures and pipelines for LLOG Exploration Offshore’s Salamanca project in the US Gulf of Mexico
LLOG is developing the Castile and Leon hydrocarbon fields with a network of subsea facilities in water depths ranging from 1,800 m to 2,000 m tied back to the Salamanca floating production system (FPS).
Subsea 7 will install subsea infrastructure, including two pipeline systems for the Leon field and one for Castile, located in the Keathley Canyon (KC), plus the oil and gas export pipelines from the FPS to existing pipeline transport systems 48 km from the production facility.
Offshore activity is expected to begin in 2024, while project management and engineering will commence immediately at Subsea 7’s office in Houston, Texas.
Subsea 7 said this was a sizeable contract, which it valued US$50M-US$150M. Subsea 7 vice president Craig Broussard said this was a “fast-paced, greenfield development” for LLOG.
“Our strengths as a collaborative partner and the versatility of our fleet will be instrumental in ensuring predictable, safe and timely project delivery,” he said.
LLOG is renovating a semi-submersible deep-draught production platform, formerly Anadarko’s Independence Hub, for this project.
It will operate the project with partners include Repsol Exploration and Production USA and Beacon Offshore Energy with the Salamanca facility set to be moored in block KC 689.
Two wells will produce oil and gas from the Leon field in KC blocks 642, 643, 686 and 687 and one from the Castile discovery in KC 736.
The Salamanca FPS will have production capacity of around 60,000 barrels of oil and 40M ft3 of gas per day.
Because it reuses a laid-up platform that was scheduled to be decommissioned, it has a positive environmental, social and governance impact for LLOG and its partners.
This project will accomplish a 70% reduction in emissions impact compared with the construction of a new unit. All of the major topsides repurposing and modifications work is being undertaken in the US.
Capital expenditure on the FPS is being financed through an ownership arrangement with investment vehicles managed by Boston-headquartered ArcLight Capital Partners.
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