- Subsea 7 wins a ‘substantial’ project for Shenandoah Development from Beacon Offshore Energy.
- The project is valued between US$150 and US$300 million.
- In its third-quarter 2021 results, the company’s revenue rose 53% to US$1.45 billion.
Engineering firm delivering offshore projects for energy industry, Subsea 7, has announced its first contract award for the year 2022. The company revealed that it has secured a substantial project to install subsea services concerning Beacon Offshore Energy’s Shenandoah Development. The Project is located in the Gulf of Mexico in water depths up to 6,300 feet.
The Luxembourgish-domiciled engineering firm reported a series of contract awards last year. These included a large contract in December for the Subsea Integration Alliance by Woodside for the Scarborough project, located roughly 380km offshore Northwest Australia.
The company shares on its website that any project falling between US$150 million and US$300 million of worth is considered to be a substantial one.
The company informed that the Project encompasses the tie-back of four subsea wells to the Shenandoah host facility via a subsea manifold with dual flowlines and risers. The company will be responsible for engineering, procurement, construction, installation (EPIC), and subsea equipment commission. The company will also undertake the wet tow and hook-up of the semi-submersible FPS to the field and the mooring system installation.
Commenting on the Beacon Offshore Energy deal Craig Broussard, Vice President for Subsea 7 US, said: “We look forward to building on the collaborative approach demonstrated by the Shenandoah project to form a prolonged cooperative relationship supporting Beacon’s future growth plans.”
Financials of the company:
In its third-quarter 2021 results, the company revealed that its revenue rose 53% year-on-year to US$1.45 billion. This revenue growth was driven by a significant increase in activity in the Subsea and Conventional and Renewables business units in several countries where the company has its presence. During the quarter, Subsea 7 made progress in delivering its two-fold strategy encompassing “subsea field of the future” and “energy transition.” The company’s net operating income for the quarter stood at US$78 million, compared to a net operating income of US$7 million in Q3 2020. Diluted earnings per share were US$0.15 in Q3 2021 compared to a diluted loss per share of US$0.14 in Q3 2020.
What lies ahead
The Project allows Subsea 7 to demonstrate the capability of its offering. This includes extensive involvement in mooring and installation of host facilities, EPIC activities related to the flowline system, and utilising industry-leading experience as well as welding capabilities to encourage the development of high-pressure fields.