Offshore installation company Subsea 7 on Wednesday said it had won a 'sizable' contract with Chevron for the development of the Ballymore offshore project in the U.S. Gulf of Mexico. Subsea 7 defines a sizable contract as being between USD 50 million and USD 150 million.
In water depths of up to 6,550 feet (~1996 meters), the project includes the installation of a Steel Catenary Riser (SCR), flowline and control system.
Subsea 7 has supported Chevron with early engineering prior to the award. The offshore scope will be executed in 2023.
Project management and engineering will take place in Subsea 7’s office in Houston, Texas.
Craig Broussard, Vice President for Subsea 7 U.S., said: "The Ballymore project is an excellent example of how we continue to build on our collaborative engagement with Chevron. We have been working together to drive value creation through early engagement, optimizing project delivery and accelerating first oil. The relationship allows for a best-in-class project delivery of this tie-back development.”
Chevron sanctioned the Ballymore oil field development in the deepwater U.S. Gulf of Mexico in mid-May.
The project, with a design capacity of 75,000 barrels of crude oil per day, will be developed as a three-mile subsea tieback to the existing Chevron-operated Blind Faith platform. Ballymore will be Chevron’s first development in the Norphlet trend of the U.S. gulf. The project will be in the Mississippi Canyon area about 160 miles (260 km) southeast of New Orleans. Potentially recoverable oil-equivalent resources for Ballymore are estimated at more than 150 million barrels.
The project, which involves three production wells tied back via one flowline to the nearby Blind Faith platform, will require an investment of approximately $1.6 billion. Oil and natural gas production will be transported via existing infrastructure. First oil is expected in 2025.