Subsea 7 Scores 'Substantial' Contract at Shenandoah Field in U.S. Gulf

January 26, 2022

Credit: Subsea 7
Credit: Subsea 7

Offshore oil and gas installation services company Subsea 7 said Wednesday it had scored a contract for subsea installation services related to Beacon Offshore Energy’s Shenandoah Development, located in the U.S. Gulf of Mexico in water depths up to 6,300 feet (1920.24 meters).

Subsea 7 said the contract was a substantial one. Subsea 7 defines a 'substantial' project as being worth between $150 million and $300 million.

The project covers the tie-back of four subsea wells to the Shenandoah host facility through a subsea manifold with dual flowlines and risers. 

Subsea 7's scope of work under the contract includes engineering, procurement, construction, installation (“EPIC”), and commissioning of the subsea equipment including structures, umbilicals, and production and gas export flowlines. Subsea 7’s scope also includes the wet tow and hook-up of the semi-submersible FPS to the field and mooring system installation. 

The 330 million barrel deepwater Shenandoah project was sanctioned last year. Beacon Offshore ordered the Floating Production System from Hyundai Heavy Industries in August 2021. The floater is scheduled for delivery in 2024.

For Subsea 7, project management and engineering will start immediately at the company's offices in Houston, Texas. Fabrication of the flowlines and risers will take place at Subsea 7’s spoolbase in Ingleside, Texas, with offshore operations scheduled for 2024.

Craig Broussard, Vice President for Subsea 7 US, said, “We are pleased to have been selected as a partner for the delivery of the Shenandoah development.  

"This project allows Subsea 7 to demonstrate the full capacity of our offering, including our extensive involvement in mooring and installation of host facilities, EPIC activities related to the flowline system, and utilizing our industry leading experience and welding capabilities to support the development of high-pressure fields. We look forward to building on the collaborative approach demonstrated by the Shenandoah project to form a long-term cooperative relationship in support of Beacon Offshore Energy’s future growth plans.”

Shenandoah is operated by Beacon Offshore Energy, with partners being Navitas and HEQ Deepwater, a company formed in 2021.   

On August 25, 2021, HEQ Deepwater closed on the acquisition of a 20% working interest in the Shenandoah development from an affiliate of Beacon Offshore Energy, and on the same day, the Shenandoah partners sanctioned the Shenandoah development.


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