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Subsea JV wins first Australian contracts

A joint venture (JV) of subsea companies has won contracts to deliver a new flowline to link with an existing pipeline.

The Subsea Integration Alliance (SIA), comprising OneSubsea and Subsea 7, was awarded the subsea engineering, procurement, construction, installation and commissioning contracts by Esso Australia, a subsidiary of Exxon Mobil, for the work on the West Barracouta project.

Part of the Esso-BHP Gippsland Basin JV, the project is located in the VIC/L1 block offshore Victoria.

SIA combines OneSubsea and Subsea 7’s expertise in subsea production systems and subsea umbilical, riser and flowline systems.

As part of the group’s first integrated subsea project in Australia, the scope of work includes the engineering, procurement, construction and installation (EPCI) of two production wells at a depth of 45 m, which will be tied back to Exxon’s Longford Plants, located 20 km from Sale.

Subsea 7 will manage the EPCI of two production wells, as well as an electrohydraulic umbilical from the Barracouta Platform to the West Barracouta drill centre.

OneSubsea, a Schulumberger company, will deliver two vertical monobore on-wellhead production trees, wellheads, controls and installation and commissioning services.

“By adopting our supplier-led approach, Esso will leverage our technical specifications as well as standardised configurable products that will allow for shorter lead times, overall lower system costs, and accelerated first gas production,” said OneSubsea President Don Sweet.

“Further, SIA’s execution strategy will enable Esso to achieve cost and schedule certainty and reduce interface risk.”

Subsea 7 Australian and New Zealand Vice President Andy Woolgar said the contracts build on SIA’s relationship with Esso and reflects the reputation the JV has for quality-focused project execution, with optimised production and improved cost efficiency.

“By bringing together complementary technology and expertise, we are able to provide our clients with greater certainty of return on investment and enhanced asset profit potential,” he said.

“This project serves as a step-change of how we work in the region and demonstrates our ability to deliver superior value to the industry.”

Project management and engineering will be provided by OneSubsea and Subsea 7 from offices in Perth and Melbourne, with offshore installation activities scheduled for 2020.

The project is operated by Esso, which owns a 50 per cent interest, along with BHP (50 per cent).

For more information visit the SIA website.

If you have company news you would like featured in The Australian Pipeliner contact Assistant Editor David Convery at dconvery@gs-press.com.au

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