Subsea 7 S.A. secures extension for Sakarya gas field development in Türkiye

Subsea 7 S.A. has announced a significant contract extension from Turkish Petroleum Offshore Technology Center AS (TP-OTC) for the second phase of the Sakarya gas field development in the Black Sea, offshore Türkiye. This contract extension, worth between $300 million and $500 million, which will be recorded in the Q2 2024 backlog, involves the installation of Türkiye’s first floating production unit (FPU).

Details of the Contract Extension:

The contract extension enhances an initial agreement awarded in May 2023 to a consortium that includes SLB, Subsea Integration Alliance, and Saipem. This consortium was tasked with the engineering, procurement, construction, and installation (EPCI) of the second development phase (2a) of the Sakarya gas field. Subsea 7’s role under the expanded contract encompasses the installation and integration of risers, umbilicals, hook-ups, and mooring systems with the FPU, coordinated through Subsea7’s Istanbul office.

Subsea 7 wins a major contract extension for the installation of the first FPU in Türkiye’s Sakarya gas field, marking a milestone in deepwater development.

Strategic Importance of the Sakarya Gas Field:

The Sakarya gas field represents Türkiye’s first deepwater gas field development, a pivotal project for the nation’s energy security goals. Olivier Blaringhem, Chief Executive Officer of Subsea Integration Alliance, expressed pride in the contract extension, noting, “We are proud to receive this contract award extension by TP-OTC to install the country’s first floating production unit. We look forward to our continued collaboration with TP-OTC and our consortium partners to unlock the full potential of the Sakarya gas field.”

Subsea7’s Continued Role and Impact:

Franck Louvety, Senior Vice President of Subsea7’s Global Project Centre – West, highlighted the extension’s significance: “Today’s award extends Subsea7’s involvement in the ongoing development of Türkiye’s first deepwater gas field. In collaboration with TP-OTC, Subsea7 and our consortium partners will now deliver another milestone for the country – its first FPU installation.” Hulya Ozgur, Managing Director Subsea7 Türkiye, also affirmed the company’s commitment to this project.

This contract extension is a testament to Subsea7’s strong performance and strategic partnerships in the region. The installation of the first FPU is a critical step in advancing Türkiye’s capabilities in deepwater gas extraction and underscores the country’s commitment to enhancing its energy independence and security.