Subsea7 is closely watching Suriname’s offshore oil sector, with hopes of winning a massive subsea contract to support TotalEnergies’ Block 58 project.
In a Q2 earnings presentation, Subsea7 listed the Suriname project among a selection of Invitations to Tender (ITT) in-house or expected in the next 12 months. It expects the contract to be valued in excess of US$1.25 billion for an integrated subsea umbilicals, risers and flowlines – subsea production system (SURF-SPS).
TotalEnergies plans to make a final investment decision (FID) on the project in 2024, alongside Block 58 partner, APA Corporation. The project’s total development cost is currently estimated at US$9 billion.
The first such development offshore Suriname is targeting production of approximately 700 million barrels of oil at 200,000 barrels per day (b/d). TotalEnergies has reserved one of SBM Offshore’s Fast4Ward hulls for the floating production, storage and offloading (FPSO) vessel. The life of the production is expected to be 25-years, starting in 2028.
Subsea7’s other most valuable prospects are located in Brazil. They involve the four Petrobras-led projects – Buzios 10, Buzios 11, Atapu 2, and Sepia 2. Subsea7 is also closely watching the Bacalhau Ph 2 project led by Equinor. All of these prospects, like the Block 58 contract, are estimated by Subsea7 to be valued in excess of US$1.25 billion.
Subsea7’s Chief Executive Officer, John Evans, said, “The outlook for incremental work in Brazil remains very good, with several projects on the bidding horizon, valued at multiple billions. Elsewhere, there’s a wide range of small and medium-sized projects in deepwater markets in the US, Gulf of Mexico, West Africa, Turkey and beyond.”
He said Subsea7 is confident that it has a strong tendering pipeline that can support continued momentum in its subsea order intake. Its bidding for subsea work remains active, with in-house tenders exceeding US$21 billion.
Subsea7 recently completed offshore pipe-laying for the Gas-to-Energy project in Guyana, in partnership with Van Oord.
TotalEnergies is the operator of Block 58 with a 50% interest, alongside APA Corporation (50%). Staatsolie has the option to enter the development project with up to 20% interest upon FID.
