Oil giant BP has awarded contracts related to its Mad Dog 2 development in the Gulf of Mexico, approximately 190 miles south of New Orleans, to Subsea 7 and Schlumberger’s OneSubsea, which cooperate through Subsea Integration Alliance.
BP, as the operator, sanctioned the project in December last year. Mad Dog Phase 2 will include a new floating production platform with the capacity to produce up to 140,000 gross barrels of crude oil per day from up to 14 production wells. Oil production is expected to begin in late 2021.
Earlier this month, Wood Group won two separate contracts related to BP’s Mad Dog 2 project to provide engineering services to further develop deepwater production.
Subsea 7 informed on Tuesday it has won a large contract, which the company defines as being between $300 million and $500 million, from BP for the Mad Dog 2 project.
The contract scope for Subsea 7 covers engineering, procurement, construction and installation (EPCI) of the subsea umbilicals, risers and flowlines (SURF) and associated subsea architecture.
On the other hand, OneSubsea has been awarded an engineering, procurement and construction (EPC) contract to supply the subsea production system for the Mad Dog 2 development. The scope of this supplier-led solution includes subsea manifolds, trees, control system, single and multi-phase meters, water analysis sensors, intervention tooling and test equipment for producer and water injection wells associated with the project.
Development cost reduced
Subsea 7 and OneSubsea collaborate through the Subsea Integration Alliance. Subsea 7 noted that by collaborating with OneSubsea, additional areas of cost improvement have been identified to provide greater cost certainty and reduced risk. This has enabled the original cost of the Mad Dog 2 development to be substantially reduced, the company added.
“Our collaborative working relationship with Subsea 7 empowers our organizations to deliver to BP an integrated EPCI capital-efficient solution, which is substantially lower than the original estimated project cost,” said Mike Garding, president, OneSubsea, Schlumberger. “Our equipment reliability is a key factor in mitigating project risk and this project will benefit from the supplier-led approach of using standardized equipment designs and specifications.”
OneSubsea’s project management, including engineering, fabrication, installation support and life of field activities will be managed by US-based resources and operations in both Houston, Texas, and Louisiana, with support from Subsea 7’s Global Project Centre in London, UK. Teams from both organizations will be co-located to better support project objectives. Offshore installation activities are scheduled for 2019 and 2020.
Craig Broussard, Subsea 7 Vice President for the Gulf of Mexico, said: “The Mad Dog 2 project is a significant award for Subsea 7. It combines Subsea 7’s capability with our Subsea Integration Alliance value offering to reduce risk and provide lower cost solutions for BP. This project serves as a step-change of how we work in the region and in Subsea 7’s ability to deliver superior value to the industry.”