Subsea 7 in 'Large' Barossa SURF Contract

Subsea 7 has won what it describes as "a large contract" by ConocoPhillips in Australia. Subsea 7 defines a large contract as between $300 million and $500 million.

The contract is for the supply of the SURF scope for the Barossa Project. The Barossa Project is a gas and light condensate field located offshore about 300 kilometers north of Darwin, Northern Territory. 

Subsea 7’s scope of work includes project management, engineering, procurement, fabrication, transportation, installation and pre-commissioning of 36 km of flowlines and associated client-supplied risers, umbilicals and subsea structures in water depths between 230 and 270 meters. 

The offshore work scope is scheduled to occur in 2022 and 2023, using Subsea 7’s reel-lay and heavy construction vessels.

Related: Barossa FID Expected in Early 2020

Andy Woolgar, Vice President Australia, and New Zealand for Subsea 7 said: "We are delighted to be working on this prestigious project which will utilize the full range of installation and pipelay capabilities that we have in Australia and illustrates how Subsea 7’s global technology portfolio allows us to deliver cost-effective solutions to our clients worldwide.”

The Barossa Project is a Joint Venture between ConocoPhillips Australia Barossa Pty Ltd (the Operator) (37.5%), SK E&S Australia Pty Ltd (37.5%) and Santos Offshore Pty Ltd (25%). The development is currently awaiting final investment decision.

Santos, ConocoPhillips' partner in the project said Tuesday the Subsea 7 SURF supplies would be "the last major facilities commitments ahead of a Final Investment Decision (FID)."

Closing in on FID

Santos has also sharded that the contract for the transport and installation of all the subsea umbilicals, risers, and flowlines, as well as the supply of the in-field flowlines, has been awarded to Subsea 7, whilst Aker Solutions will supply the umbilicals and National Oilwell Varco Denmark I/S will supply the flexible risers.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said: “These are the final major facilities contracts for Barossa as we get closer to pushing the button on the project’s development in the second quarter.”

"They follow the award of the FPSO facility, subsea wells and subsea production system, and gas export pipeline tenders, with the contract for the drilling of the production wells to be awarded in the near future."

Back in October 2019, the Barossa partners awarded a contract for the delivery of the Barossa FPSO to Japan's Modec.

The Barossa development concept consists of an FPSO, six subsea production wells, supporting in-field subsea infrastructure and a gas export pipeline tied into the existing Bayu-Undan to Darwin pipeline, supplying gas to Darwin LNG.

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