Maersk Awards Further $150 Million Offshore Culzean Contracts

Published at 10:54AM - 01/09/15

Danish based offshore major, Maersk oil, continue to move at a frenetic pace with their UK North Sea Culzean project.

As previously reported, the UK authorities only gave the go-ahead for the project Monday. It is the largest offshore oil and gas project to be given the approval by UK authorities since the East Brae back in 1990 and has will receive an investment of GB£ 3 Billion(US$4.6 bn).

This morning, the announcement was made that Singapore based Sembcorp would construct the platforms topsides, in a contract award worth US$ 1 billion.

Within hours, a further announcement has been made detailing another contract award for the same project worth US$ 150 million.  The contract, won by London based Subsea 7, covers all subsea, umbilical, riser and flow-line (SURF) work.

Subsea 7 have said the contract also includes all onshore project management, overseeing Culzean’s subsea engineering, procurement and construction, as well as offshore work to connect all tie-ins and risers.

Further, the workscope includes the engineering and installation of a 22”, 32 mile (52km), subsea pipeline that will connect the Culzean platform to the UK’s Central Area Transmission System (CATS) pipeline, enabling Culzean’s produce to be pumped ashore to the UK mainland.

A second subsea 2 mile (3.6km) pipeline will be installed by Subsea 7, connecting the Culzean production platform to the infield Floating Storage and Offloading facility (FSO), for the transportation of the fields condensate. Produced condensate will then be offloaded to waiting tankers for sale and transportation to international markets.

Maersk Oil and Subsea 7 are looking to commence all subsea work in 2017 utilising, Subsea’s Seven Borealis, a multi role heavy lift and pipe lay vessel.

As part of the fast tracked schedule, Subsea 7 have said that onshore engineering and procurement will start immediately.

Phil Simons, Vice President UK and Canada, said, “This large project awarded by Maersk Oil for their Culzean field development, confirms our reputation as a world-class provider of reliable and cost effective SURF solutions. The Seven Borealis has the ability to deliver fit-for-purpose performance demonstrating the optimum balance of cost-efficiency and capability. We look forward to collaborating with Maersk to ensure the safe and timely delivery of this significant gas production development.”