LNG

July 26 (LNGJ) - Subsea 7, the Norwegian-listed contractor working on projects including the Sakarya gas field in the Black Sea, Turkey’s largest ever discovery that will reduce LNG needs, said it expected a rise in revenues as “pricing and contract terms showed continued positive momentum” during the second quarter.

   The company reported an 11 percent rise in earnings to $162 million from $134M in the same quarter of 2022. Quarterly revenues jumped to $1.51 billion from $1.24Bln. “The backlog is $10.4 billion, of which $3.0Bln is to be executed in 2023 and $4.3Bln in 2024,” it said. Subsea 7 added that contracts included “notable awards” such as the Sakarya Phase 2A integrated subsea development project in Turkey.

Subsea 7 SA, the European contractor listed on the Norwegian stock exchange, said it was proud to support African oil and gas development after being awarded a lean-gas project contract in the LNG-producing nation of Angola.

Subsea 7 said its “substantial” contract was awarded by Cabinda Gulf Oil Company (CABGOC), a subsidiary of US major Chevron Corp. operator of the LNG plant.

The contract is for the Sanha Lean Gas Connection (SLGC) project comprising the construction and installation of the Lean Gas Platform system in Block-0 offshore the southwest African state at a water depth of around 70 metres.

Project management and engineering would be performed from Subsea 7’s offices in Paris and Lisbon.

Subsea 7 contracts listed as “substantial” are usually worth between $150 million to $300M.

Fabrication will take place at Sonamet’s yard in Lobito, Angola, from 2021 to 2022, while offshore operations will occur from 2022 and 2023.

“We are delighted to have been awarded this contract by CABGOC, following a public tender,” said Gilles Lafaye, the Subsea 7 Senior Vice President for Africa, the Middle East and Caspian Region.

“This is the result of a long-term collaboration with the client and a track record of delivering successful projects,” added Lafaye.

“The project reinforces Subsea 7’s presence in Angola and our commitment to support Africa’s energy industry,” he stated.

Angola has taken up the rotating presidency of the Organisation of Petroleum Exporting Countries and will chair OPEC meetings during 2021 at a time of change and challenges in the industry.

Angola is the second-largest oil producer in Sub-Saharan Africa and uses associated gas to produce LNG as a clean energy source at its liquefaction plant.

The other shareholders in addition to Chevron and Angolan energy company Sonangol are BP of the UK, Eni of Italy and France’s Total.

The Angola LNG plant is located 350 kilometres north of the capital Luanda in Soyo, at the mouth of the Congo River and is one of the world’s most modern LNG processing facilities.

A pipeline network of over 500km delivers gas from offshore oil fields to the Soyo plant designed to process 1.1 billion cubic feet of natural gas per day and produce 5.2 million tonnes per annum of LNG.

Norway-listed oil and gas contractor Subsea 7 SA has been awarded a contract by Chevron Corp. on the $5.7-billion first phase of the Anchor field project in the Gulf of Mexico.

Australian LNG plant operator Santos has awarded contracts to European firms for the supply and installation of subsea infrastructure for the Barossa natural gas field that will provide future feed-gas for the Darwin LNG export plant in the Northern Territory.

Santos, operator of the Gladstone LNG plant in Queensland and with stakes in Darwin LNG and the Papua New Guinea plant, said these contract awards were the final commitment made prior to the final investment decision for the Barossa project.

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, was awarded to European firm Subsea 7, while Aker Solutions of Norway will supply the umbilicals and National Oilwell Varco Denmark I/S will supply the flexible risers.

“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,” said Santos Chief Executive Kevin Gallagher.

“They follow the award of the floating production, storage and offloading  (FPSO) unit, 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,” explained Gallagher.

“They represent the final stages of the front-end engineering design phase and give us greater certainty over cost and schedule for the Barossa development,” stated the CEO of the Adelaide-based company.

The Barossa project area encompasses petroleum permit NT-RL5 located in Commonwealth waters, 300 kilometres north of Darwin, offshore the Northern Territory.

The 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.

On 14th October 2019, Santos announced the acquisition of Australian assets from ConocoPhillips in northern Australia.

These included the Timor-Leste portfolio including its interests in Darwin LNG and the Bayu-Undan and Barossa gas fields. 

Completion of the transaction and the planned sell-down to SK E&S of South Korea will leave Santos with increased stakes in these assets amounting to 43.4 percent for Darwin LNG, 43.4 percent for Bayu-Undan and 62.5 percent of the Barossa field.

Santos has said it was prepared to sell down equity in Barossa to a target ownership of 40-50 percent to achieve increased partner alignment. 

Dec 12 (LNGJ) - The Europe-based offshore development company Subsea 7 SA has been awarded a contract by Aker BP for the Aerfugl Phase 2 natural gas field development, located about 210 kilometres west of Sandnessjoen in the Norwegian Sea. Norway is one of the largest pipeline natural gas suppliers to Western Europe, along with Russian company Gazprom, and both sources compete with LNG shipments.

   The Subsea 7 engineering, procurement, construction and installation contact is a long-distance tie-back involving the application of Subsea 7’s Electrically Heat Traced Flowline (EHTF) technology for a distance of 13.5km from the subsea location to the existing Skarv infrastructure. Subsea 7 has a long-term subsea alliance agreement with Aker BP.

   “This award acknowledges Subsea 7 as a key partner in the delivery of pioneering technology, underlining our proven track record of safe and successful project execution in some of the harshest offshore environments,” said Monica Th. Bjokmann, Vice President of Subsea 7 Norway.

Norwegian-listed engineering company Subsea 7 SA said it would be going ahead with a substantial contract for the second phase of the Julimar-Brunello field development project linked to the supply of feed-gas to the Wheatstone LNG export plant in Western Australia operated by US major Chevron Corp.

Woodside Petroleum, the operator of the North West Shelf and Pluto LNG export plants in Western Australia, has awarded four contracts for front-end engineering and design activities for the proposed Scarborough natural gas project to underpin expansion at the Pluto facility on the Burrup Peninsula.

Woodside Petroleum, the Australian liquefied natural gas developer, said it was moving forward with its front-end engineering design activities for its joint venture offshore Senegal in West Africa where BP and other companies are developing floating LNG projects.

ExxonMobil, whose main Australian LNG stake is in Gorgon LNG in Western Australia, said it was planning to increase its presence in the domestic market by developing the West Barracouta natural gas field in the Bass Strait between the southern Australian states of Victoria and Tasmania.

Chiyoda Corp., the leading Japanese project engineer, was awarded a pre-front-end engineering and design subsea contract along with a partner for the Indonesian Abadi natural gas field in the Arafura Sea that will underpin an onshore LNG export project.