Saipem, TechnipFMC hired for subsea work on Block 58 development

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Saipem and TechnipFMC said they were hired to undertake subsea work in support of the first oil development offshore Suriname. The Gran Morgu project is being pursued by TotalEnergies, in partnership with APA Corporation.

The project will combine TechnipFMC’s subsea architecture with Saipem’s EPCI solutions and pipelay capabilities—notably J-Lay, the optimal solution given the location offshore Suriname—to accelerate time to first oil and increase schedule certainty.

Saipem said it was awarded a US$1.9 billion engineering, procurement, construction and installation (EPCI) contract by TotalEnergies EP Suriname B.V., a subsidiary of TotalEnergies, for the subsea development of the project.

Saipem’s scope of work entails the engineering, procurement, supply, construction, installation, pre-commissioning and assistance for the commissioning and start-up of the subsea umbilicals, risers and flowlines (SURF) package. This includes the EPCI of approximately 100 kilometers (km) of 10” to 12” subsea production flowlines, 90 km of 8” to 12” water and gas injection lines, and the transportation and installation (T&I) of flexible risers, umbilicals and associated structures, at water depths ranging from 100 to 1,100 meters. For the offshore campaign, taking place in 2027 and 2028, Saipem will deploy a combination of S-Lay and J-Lay vessels, providing the optimal pipeline installation solution.   

Moreover, Saipem will execute the project in cooperation with TechnipFMC, the company in charge of the subsea production system (SPS) and flexible risers and umbilical equipment packages, to optimize the integration between ​the mutual scopes of work. 

TechnipFMC said it received an iEPCI™ contract. TechnipFMC’s contracted scope for the project includes Subsea 2.0® tree systems, manifolds, connectors, and topside control equipment. The company will also supply umbilicals, flexible jumpers, and flexible risers. According to TechnipFMC, the “major” award, representing more than US$1 billion, represents the value of the contracted scope awarded to it. 

Jonathan Landes, President, Subsea at TechnipFMC commented: “We are very pleased to receive this iEPCI™ award for the GranMorgu project. We are bringing our new frontier experience and differentiated technology—including Subsea 2.0®—while leveraging the complementary capabilities of our vessel ecosystem.” 

Saipem said the two companies have a collaborative model based on a commercial alliance they created in 2021 for the pursuit of subsea projects including integrated SURF-SPS developments.

The Gran Morgu project includes a system of subsea wells connected to a floating production, storage and offloading (FPSO) vessel. SBM Offshore, in partnership with Technip Energies, was hired to deliver an ‘all-electric drive’ FPSO for the project. It will be capable of producing 220,000 barrels of oil per day (b/d). First oil is expected in 2028.

While the first for Suriname, Gran Morgu will be the seventh in the basin. Six developments have been sanctioned offshore nearby Guyana by ExxonMobil, with three already in production. The remaining three are expected to be added by 2027. A seventh Guyana project is in the application phase and is being targeted for first oil in 2029. 

Therefore, in the Guyana-Suriname Basin, a new oil development is expected to be added every year through 2029. Together, they will be capable of producing approximately 1.75 million b/d.

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