Core Project phase 1 in North Sea : Subsea 7 wins EPCI contract from IOG

Subsea 7 has bagged an engineering, procurement, construction, and installation (EPCI) contract from Independent Oil and Gas (IOG) for the Blythe and Vulcan Satellites field development – which is the phase 1 of the Core Project in the UK North Sea.

The scope of the contract covers the project management, engineering, procurement, construction, and installation of 35km of flow lines to be laid between the Southwark, Blythe, and Elgood fields in the UK Southern North Sea. Besides, Subsea 7 will be responsible for delivering subsea structures, an umbilical, and associated subsea tie-ins under the contract valued between $50 million and $150 million.

The UK-based subsea engineering, construction, and services company has started project management and detailed engineering at its office in Aberdeen. Subsea 7 said that offshore activities are slated to begin later this year.

Jonathan Tame – Subsea 7 Vice President UK & Canada, said: “We are pleased to be awarded this contract, which strengthens our reputation as a global provider of value-driven SURF solutions. We look forward to collaborating with IOG to ensure the cost-effective, safe and timely execution of each phase of the development.”

IOG is the operator of the Southwark, Blythe, and Elgood fields with a 50% stake and is partnered by CalEnergy Resources.

Phase 1 of the Core Project will be developed through the drilling of a total of five wells from which gas will be transported onshore through the Thames Pipeline.

Andrew Hockey – CEO of IOG said: “We are pleased to be working with Subsea 7, a globally recognised leader in offshore energy services, for the SURF scope of Phase 1 of our core UK SNS gas development. They will be an important contractor for IOG in ensuring safe and efficient Phase 1 execution, which includes the offshore pipelay campaign being prepared for the second half of this year.

“We have already been working with Subsea 7 for several months under a pre-contractual arrangement and with the contract now finalised we look forward to further developing our constructive relationship.”