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Subsea 7 Announces Major Pipeline Bundle Contracts for BP and Apache in the North Sea

08 July 2010

Subsea 7 Inc, one of the world’s leading subsea engineering and construction companies, announced recently that it has been awarded two major engineering, procurement, installation and commissioning (EPIC) pipeline bundle contracts in the UK North Sea. The first, valued in excess of $135m is from BP Exploration Operating Company Ltd. for its Andrew Area Development Project. The second, valued in excess of $75m, is for Apache North Sea Ltd’s Bacchus Subsea Development Project.

The Subsea 7 work scope for the BP Andrew area development is to engineer, procure, fabricate, install and commission a 28km pipeline bundle system consisting of production, gas lift and methanol pipelines. Also included is the installation of a 28km electro-hydraulic control umbilical, tie-ins of integrated subsea towhead structures, field testing and pre-commissioning works. The pipeline bundle system will be installed using the controlled depth tow methodology (CDTM*) to tie-back BP’s Arundel and Kinnoull developments to the Andrew platform.

The BP Andrew pipeline bundle system consists of 4 daisy chain pipeline bundles (totalling approx. 28km). It represents a step change in the Subsea 7 pipeline bundle tie-back range in that it will be the longest bundle Subsea 7 has produced and installed to date. Subsea

The Subsea 7 work scope for the Apache Bacchus development is to engineer, procure, fabricate, install and commission a 7km pipeline bundle consisting of production, gas lift, methanol and heating pipelines and controls umbilical. The pipeline bundle system will also be installed using the controlled depth tow methodology (CDTM) connecting three new wells at the Bacchus Development in a subsea tie-back to the existing Forties Alpha platform.

As part of the Bacchus field development project, Subsea 7 will also install a caisson riser system at the Forties Alpha platform and conduct pre-commissioning activities on the complete system.

Subsea 7’s Vice President for the UK Region, Steph McNeill, commented:

“We are extremely pleased to be awarded these major pipeline bundle projects, which build upon our strong track record of successful bundle design, fabrication and installation. We look forward to helping bring on-stream the Andrew area development and the Bacchus subsea development in an efficient, timely and safe manner.”

Pipeline bundle technology is unique to Subsea 7, the product allows efficiencies to be generated by neatly incorporating all the structures, valve work, pipelines and control systems necessary to operate a field in one single product. Subsea 7 has successfully produced and installed 60 bundles in the last 30 years.

Engineering has commenced in Subsea 7's offices in Aberdeen for both projects, fabrication of the pipeline bundles will be carried out at the company’s North Sea bundle fabrication site in Wick, Northern Scotland. Offshore phases of both projects will commence in 2011.