Oil company LLOG Exploration Offshore has awarded a subsea installation contract to Subsea 7 as part of its Salamanca development project in the U.S. Gulf of Mexico.
The Salamanca development project includes the Leon and Castile offshore oil fields.
Subsea 7's contract scope includes the installation of three infield subsea pipeline systems, as well as the design and fabrication of subsea structures.
The subsea development will consist of two pipeline systems for the Leon field, located in Keathley Canyon 686, and one pipeline system for the Castile field, located in Keathley Canyon 736. The infield pipelines will produce and flow from wellsite PLETs to the Salamanca floating production facility (FPS) in water depths ranging from 1,800 to 2,000 meters.
Additionally, the scope includes the installation of oil and gas export pipelines which depart from the Salamanca FPS and tie into existing pipeline transport systems approximately 48 kilometers away.
Project management and engineering will start immediately at Subsea 7’s office in Houston, Texas, with offshore activity expected to begin in 2024.
Craig Broussard, Vice President for Subsea7 US said: “We are excited about the opportunity to work closely and openly with LLOG on this fast-paced, greenfield development. Our strengths as a collaborative partner and the versatility of our fleet will be instrumental in ensuring predictable, safe, and timely project delivery.”
Subsea 7 said that the contract was a sizeable one. Subsea7 defines a sizeable contract as being worth between USD 50 million and USD 150 million.