MEOG: Subsea7 picked for Abu Sa’fah work

Luxembourg-based Subsea7 this week announced that it has been awarded a contract by Saudi Aramco to replace a subsea pipeline for the offshore Abu Sa’fah oilfield.

In a press release on its website, the company said that the contract covers “decommissioning of existing subsea facilities as well as engineering, procurement, construction, and installation [EPCI] of a new pipeline and subsea equipment”.

Subsea7 said that engineering work would begin imminently, with the facilities expected to be operational by 2026. It added that the project, valued at $150-300mn, will be managed from the company’s local office in Al Khobar, supported by teams in Dubai and Singapore.

David Bertin, Senior Vice President for Subsea7 Global Projects Centre East, was quoted as saying: “This award builds on Subsea7’s decade-long relationship with Aramco and track record of reliable project execution in the Kingdom of Saudi Arabia.”

Subsea7 is a signatory of Aramco’s long-term agreement (LTA) programme as part of a consortium with India’s L&T.

The pool of signatories comprises: Italy’s Saipem, McDermott of the US, US firm Dynamic Industries, a consortium of UAE-based Lamprell and Dutch company Royal Boskalis Westminster, the UAE’s National Petroleum Construction Co. (NPCC), Sapura Energy of Malaysia, a consortium of TechnipFMC and Malaysia’s MMHE, China Offshore Oil Engineering Co. and South Korea’s Hyundai Heavy Industries.

In July, Italy’s Saipem was contracted to carry out EPCI work on a 42-inch (1,067mm), 50km crude trunkline.

Abu Sa’fah produces around 300,000 barrels per day (bpd) of crude, with Aramco working to expand output and the new trunkline seen as key to that uptick. In accordance with a deal signed in the 1950s, Bahrain receives a 50% share of production, though this crude is marketed and exported on its behalf by Aramco.

The oil is sold from Aramco’s Ras Tanura and Juaymah terminals, and Bahrain’s Bapco Energies receives a share of revenues minus Aramco’s marketing costs.

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