Subsea7 Wins Egypt Work from BP

Subsea 7, the London-based Norway-listed contractor, said October 20 it had been awarded a “substantial contract”, which it defines as between $150mn and $300mn, offshore Egypt by a BP-led joint venture with state Egyptian General Petroleum Corp. 

The contract is for the engineering, procurement, construction and installation (EPCI) of more than 40km of rigid pipelines and associated structures for the new Atoll gas field, to be executed at water depths of over 900 metres. “This substantial contract award recognises our technical expertise and track record of strong execution for Pharaonic Petroleum Company," said Subsea 7's regional vice president for Africa, Gilles Lafaye. 

The new pipes will tie the new field into the existing Taurt field at a water depth of 100 metres; a 105km umbilical will also be installed linking the Atoll field to shore. Offshore campaigns will take place in the second half of 2017 and the early months of 2018, using three of Subsea 7’s vessels.

Seven Borealis, along with Seven Eagle and Seven Arctic will be used on the Atoll pipelaying contract (Photo credit: Subsea7)

BP announced June 20 the sanctioning of Atoll phase one project, an early production scheme that will bring up to 300mn ft³/d gross of gas to the Egyptian domestic gas market starting 1H2018. Atoll was only discovered in March 2015. The sanctioning involved an agreement involving BP, EGPC and state Egyptian Natural Gas Holding Company (Egas). BP has a 100% interest in the Atoll concession.

BP one of the largest foreign investors in Egypt and last month secured further production concessions there. The UK major is also a partner in the 3 trillion ft³ Eni-operated Greater Nooros area, which is increasing production ahead of schedule.

Mark Smedley