Subsea 7 lands Shell Brazil subsea deal

Subsea-721 March 2014, News Wires – Subsea 7 has signed a deal with Shell covering subsea installation at a project off Brazil.

The deal, worth around $110 million, will see Subsea 7 install jumpers, umbilicals and associated subsea structures at the Parque das Conchas (BC-10) Phase 3 project in the Campos basin.

Project management and engineering will be carried out at the contractor’s facility in Rio de Janeiro and will begin this quarter.

Offshore work will commence in the third quarter next year using the construction support and flexible pipelay unit Skandi Neptune.

The contract has a duration of about two years.

In January Shell agreed to sell a 23% stake in BC-10 to Qatar Petroleum International for $1 billion. The supermajor had only bought a 23% stake in the project from Brazil’s Petrobras last year for $1 billion, to take its holding up to 73%.

Shell made a final investment decision on the third phase of development in July last year and, once online, it is expected to add 28,000 boepd at peak production.

The project has produced more than 80 million boe since coming online in 2009, with the second phase of the project to tie in the Argonauta O-North field coming online in October last year, with an expected peak production of 35,000 boepd.

The project consists of five fields – Ostra, Abalone, Argonauta B-West, Argonauta O-North and Nautilus – which all lie in the Campos basin in water depths ranging from 1500 to 2000 metres.


– Upstream

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