Oilfield services provider Dril-Quip has entered into a letter of intent with Premier Oil to provide subsea production systems for the Sea Lion Phase 1 Development located offshore the Falkland Islands.
The letter of intent was entered into with Dril-Quip’s wholly-owned subsidiary based in Aberdeen, Scotland, Dril-Quip (Europe) Limited.
According to Dril-Quip’s statement from last Friday, the scope of work includes plans for 23 subsea production systems, including wellheads, trees, control systems, associated production and injection manifolds, subsea umbilicals and related services. It is intended that Dril-Quip will start pre-sanction engineering work in August 2018.
Formal contract award will be subject to agreement of a definitive contract and Premier taking a final investment decision (FID). Dril-Quip would also provide vendor financing for a portion of the contract.
According to previous reports, the FID is expected in by the end of 2018.
Blake DeBerry, President and Chief Executive Officer of Dril-Quip, stated, “Premier’s approach was to select a world-class team of contractors, and we are pleased to play an important role in this project.”
DeBerry added: “Dril-Quip (Europe) Limited has enjoyed a successful relationship with Premier that includes providing multiple subsea completion systems for Premier’s Catcher Area Development project in the North Sea.”
Phase 1 of the Sea Lion development will recover 220 mmbbls of reserves in the north east and north west of the field located in the PL032 license area. It will be developed utilizing a conventional FPSO-based scheme, very similar to Premier’s Catcher development.