SUBSEA 7 SECURES CONTRACT FOR PENGUINS RE-DEVELOPMENT

Subsea 7 announced the award of a contract by Shell for the Penguins Redevelopment Project, located approximately 150 miles north-east of the Shetland Islands.
The engineering, procurement, construction and installation (EPCI) contract incorporates the fabrication of two Pipeline Bundles containing pipe-in-pipe production flowlines, gas lift flowlines and control systems. Additionally, this award includes the fabrication of a 9km 16” gas export pipeline, flexible riser system, dynamic umbilical riser system and associated subsea tie-ins.
Project management and engineering work will commence immediately in Aberdeen, with support from Subsea 7’s specialist technical Pipeline Group in Glasgow. Offshore activities are scheduled for 2020 and 2021.
Jonathan Tame, Vice President UK & Canada, said: “Following the successful conclusion of a competitive design competition, we are pleased to have the opportunity to bring our extensive expertise to a project of this importance. In doing so it demonstrates Shell’s confidence in our value-adding solutions, and continues a successful North Sea collaboration that has been in place since 1984.”
The Penguins field is in 165 metres (541 feet) of water. Discovered in 1974, the field was first developed in 2002 and is a joint venture between Shell (50% and operator) and ExxonMobil (50%).
A joint venture-owned/Shell-operated Sevan 400 FPSO has been selected as the development option for the field. Oil will be transported via tanker to refineries and gas will be transported via the FLAGS pipeline to the St Fergus gas terminal in north-east Scotland. (Source: Subsea 7, Shell)