LNG

McDermott International and Baker Hughes-GE, the US energy services companies, have been awarded substantial subsea contracts by BP to develop the Greater Tortue-Ahmeyim natural gas fields that will underpin several floating LNG projects offshore Mauritania and Senegal.

The initial subsea infrastructure supplied will connect the first four of 12 wells consolidated through production pipelines leading to a floating production, storage, and offloading (FPSO) vessel.

From here liquids are removed and the export gas is transported via a pipeline to the FLNG production hulls where the gas is liquefied.

McDermott defines a substantial contract as between $500 million and $750M. The contract award will be reflected in McDermott's first-quarter 2019 backlog.

McDermott and BH-GE said the contract follows an initial front-end engineering and design (FEED) phase awarded in March 2018 when both companies worked together to define the technology and equipment scope for a four-well development phase.

Project management and engineering teams from BP, BHGE and McDermott will remain co-located at McDermott's London offices for this next phase.

McDermott and BH-GE will supply subsea umbilicals, risers and flowlines (SURF) and subsea production systems (SPS) equipment.

McDermott said it planned to use its upgraded “Amazon” vessel, “DLV 2000”, “North Ocean 101” and third-party vessels to support the installation scheduled to begin in late 2020.

“The ‘Amazon’ modifications are scheduled to be completed before the installation campaign begins and will include a multi-joint (hex) J-Lay system to handle the most challenging ultra-deepwater projects as well as the addition of a multi-joint facility, dual pipe loading cranes and additional power generation,” explained McDermott.

McDermott-designed pipeline and riser structures will be fabricated at its yard in Batam, Indonesia.

BH-GE will provide five large-bore deepwater horizonal xmas trees (DHXTs), a 6-slot dual bore manifold, a pipeline end manifold, subsea distribution units (SDUs), three subsea isolation valves (SSIVs), diverless connections and subsea production control systems, specifically designed to enable the future integration of additional wells for the first phase of the development.

“This contract marks a number of firsts. Our first significant subsea EPCI project in West Africa, the first project using our state of the art pipelay vessel ‘Amazon’ and our support of BP's first entry into Senegal and Mauritania,” said Tareq Kawash, McDermott's Senior Vice President in the region.

“Our collaboration with BH-GE allows us to offer BP an integrated approach that builds on our proven solutions. We look forward, along with BHGE, to delivering this landmark project to BP with the highest levels of safety and quality,” stated Kawash.

Graham Gillies, BH-GE's Vice President for Subsea Production Systems, said the company aimed to deliver the best-in-class solution to BP with cost-efficiency and industry-leading safety.

“This major deepwater gas development is strategically important for Mauritania and Senegal's domestic and global gas supply, and supports the industry's drive for a more sustainable, lower carbon future,” added Gilles.

BH-GE has also signed an agreement to become a “Country Partner” of “Invest in Africa's (IIA) Senegal chapter”, of which BP is a founding member.

The IIA helps local suppliers to connect with international oil and gas companies, increasing the opportunities for local businesses to support large-scale projects, and training African suppliers on core business skills and entrepreneurship.

Kosmos Energy, the partner of BP in two floating LNG projects offshore Senegal and Mauritania, said the front-end engineering and design for phase one was almost completed and the development plan had been submitted to both governments.