Subsea 7 has announced the award to Subsea Integration Alliance of an exclusive contract by Equinor for the front end engineering design (FEED) study on its Bacalhau (formerly Carcará) project, offshore Brazil. The Bacalhau field is located 185 kilometres from the coast of the State of São Paulo, in water depths of 2,050 metres.
The awarded work is required to finalise the technical definition of the proposed development prior to Equinor making final investment decisions (FID) late 2020. Subsea 7 has recognised the FEED award in its order backlog.
The contract is based on a two-step award. The FEED and pre-investment are starting now, with an option for the execution phase under a lump sum turnkey set-up which includes engineering, procurement, construction and installation for the entire SURF and SPS scope.
The development will include 19 wells, approximately 130 km of rigid risers and flowlines and 35 km of umbilicals. Furthermore, Subsea Integration Alliance will be responsible for subsequent life of field support, representing a fully integrated contract model across the entire field lifecycle, from engineering, early engagement to after-sales services.
The value of the EPCI contract will only be recognised by Subsea 7 in its order backlog after FID, and will represent a “major project” award. Project management and engineering will take place in Rio de Janeiro with support from Subsea 7’s Global Project Centre in UK, France and various OneSubsea® offices. Offshore installation activities are scheduled for 2022 and 2023.
Bacalhau is Brazil’s first ever integrated SPS and SURF project. The award is a significant endorsement of Subsea Integration Alliance’s strong position within the integrated market, Subsea 7’s long-established local presence in Brazil and the Group’s commitment to support Equinor’s strategy of long-term growth in the region.
“We are extremely pleased that Subsea Integration Alliance has been awarded the FEED contract for the Bacalhau project,” says Henning Berg, CEO, Subsea Integration Alliance LLC. “The award comes on the back of a design competition where we have demonstrated our ability to maximise asset value through our integrated field development service. This involves dynamically connecting reservoir, production and economic models with well, subsea infrastructure and topside facilities in a single, collaborative environment using the Subsea Planner* collaborative field development solution. Through its tools and methodologies, Subsea Integration Alliance helps uncover the true value of an asset while seamlessly unifying planning and execution.”
Stuart Fitzgerald, Deputy CEO for Subsea Integration Alliance LLC says, “The award to Subsea Integration Alliance of the FEED contract for the Bacalhau project builds on our early engagement expertise and successful track record of major integrated projects. It underlines the breadth and strength of our product portfolio, quality of onshore and offshore assets and our extensive project management and engineering capabilities in Brazil and worldwide. We look forward to supporting Equinor in this and future developments.”
Marcelo Xavier, Subsea 7’s Vice-President Brazil, says, “This contract award builds on our successful track record of solutions developed for deepwater projects in Brazil and demonstrates our capability to maximise asset value through early engagement and an integrated approach.”
“The award to Subsea Integration Alliance of the FEED contract for the Bacalhau project exemplifies our commitment to in-country value for Brazil, enabling regional efficiency and performance while increasing local content and alignment with Equinor’s strategic priorities,” says Don Sweet, president, OneSubsea.
Note: Subsea Integration Alliance is a non-incorporated strategic global alliance between Subsea 7 and OneSubsea®, the subsea technologies, production and processing systems division of Schlumberger, bringing together field development planning, project delivery and total lifecycle solutions under an extensive technology and services portfolio.
Subsea 7 defines a major contract as being over USD 750 million.