Subsea 7, NOV ink Sea Lion FEED contracts

Premier Oil has issued key front end engineering and design (FEED) contracts for the subsea work on its Falklands Islands Sea Lion development. 

The subsea umbilicals, risers and flowlines transport and installation to Subsea 7. A FEED contract for flexibles has been awarded to National Oilwell Varco (NOV).

It is expected that the subsea production system FEED contract will be awarded during Q1 this year.

The SURF awards come just weeks after it was announced that SBM Offshore had won the FEED contract for the floating production, storage and offloading vessel on the project. 

Samuel Moody, CEO, said: "The award of FEED for SURF transport and installation and flexibles to such internationally renowned contractors builds on the momentum of the award of the FPSO FEED contract to SBM earlier this year and demonstrates that, despite the low oil price environment, the Sea Lion project continues to move forward."

Last month, Rockhopper Exploration revealed details of the now expanded scope project, which is now targeted for final investment decision mid-2017 (previously 2016) and first oil in 2020.

Phase 1a of the field, 220km north of the Falkland Islands, had been due to tap some 160 MMbbl. That’s now been increased to 220 MMbbl. Peak production has also been increased from 60,000 to 85,000 b/d, with an increase in well count from 14 to 18, with 13 drilled pre-first oil. Meanwhile, capital costs have remained fixed at US$1.8 billion, says Rockhopper. This is equivalent to about $8/bbl and amounts to a 30% cost saving, says Rockhopper, with further cost reductions expected.

A draft field development plan has also been submitted to the Falkland Island Government includes increasing field life from 15 to 20 years.  

Read more

Premier inks first major Sea Lion contract

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