Subsea Picks up Penguin Contract
Subsea 7 has won the contract for the Shell-operated Penguins Redevelopment Project, some 150 miles northeast of the Shetland Islands off Scotland, it said June 11. The engineering, procurement, construction and installation (EPCI) contract incorporates pipe-in-pipe production flowlines, gas lift flowlines and control systems, as well as a 9-km 16” gas export pipeline, flexible riser system, dynamic umbilical riser system and associated subsea tie-ins.
Project management and engineering work will start immediately in Aberdeen, with support from Subsea 7’s specialist technical Pipeline Group in Glasgow. Offshore activities are scheduled for 2020 and 2021.
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Announcing the final investment decision in January, Shell said the project would break-even at an oil price below $40/barrel and is expected to have a peak production (100%) of about 45,000 boe/d. The Penguins field processes oil and gas using four existing drill centres tied back to the Brent Charlie platform. The redevelopment of the field will see an additional eight wells drilled, which will be tied back to a new floating production, storage and offloading vessel, operated by Shell Expro, its 50-50 joint venture with ExxonMobil. Gas will be exported through the tie-in of existing subsea facilities and additional pipeline infrastructure to St Fergus.