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Subsea 7 Confirms $75m Contract for Apache North Sea

27 July 2010

Subsea 7, a Cayman Islands-based engineering and construction company servicing the oil and gas industry, has confirmed that the $75m North Sea pipeline bundle contract award it announced on April 26, 2010 was for Apache North Sea Bacchus subsea development project in the UK sector of the North Sea.

The Subsea 7 work scope 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 be installed using the controlled depth tow methodology connecting three new wells at the Bacchus development in a subsea tie-back to the existing Forties Alpha platform.

Procurement, engineering and project management has commenced, with offshore installation of the bundle scheduled for early 2011. Engineering work will be carried out at Subsea 7's Aberdeenshire office. Fabrication of the pipeline bundle will be carried out at the company's North Sea bundle fabrication site in Wick, Northern Scotland.

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.

Steph McNeill, vice president for the UK Region at Subsea 7, said: "Subsea 7 has a strong track record of successful bundle design, fabrication and installation in the North Sea since the 1980s. The bundle product allows efficiencies to be generated by neatly and efficiently incorporating all the structures, valve work, pipelines and control systems necessary to operate a field in one single product and we are pleased that Apache has chosen Subsea 7's bundle solution for their North Sea development."