Shell has awarded Subsea 7 a contract for work at its deepwater Vito development, approximately 150 miles south of New Orleans, in the US Gulf of Mexico.
The contract scope covers the project management, engineering, procurement, installation and pull-in of two 12″ infield production flowlines with 10″ steel catenary risers (SCRs), one gas lift flowline and SCR, and the umbilical system.
In a statement on Friday, Subsea 7 said the contract value was “sizeable.” Subsea 7 defines a sizeable contract as being between USD 50 million and USD 150 million.
Project management and engineering will take place in Houston, Texas, with support from Subsea 7’s specialist technical Pipeline Group in Glasgow, UK. Offshore installation activities are scheduled for 2020 and 2021.
Craig Broussard, Subsea 7 Vice President for the Gulf of Mexico, said: “We have a collaborative partnership across our management teams, where synergies and shared goals are powerful drivers in delivering a differentiated and value-adding service. This award will draw on our expertise to ensure our client is given the competency, cost-efficiency and project capability they need to unlock the full potential of this significant deepwater development.”
Shell’s Vito development, sanctioned in April 2018, will consist of eight subsea wells with deep (18,000 feet) in-well gas lift.
Vito is expected to reach peak production of approximately 100,000 barrels of oil equivalent (boe) per day. The development currently has an estimated, recoverable resource of 300 million boe. Vito will be Shell’s 11th deep-water host in the Gulf of Mexico and is currently scheduled to begin producing oil in 2021.