Subsea 7’s Culzean Job Under Way with Cutting of First Steel
Subsea 7 has cut first steel on subsea structures for Maersk Oil’s Culzean project at Nigg Energy Park fabrication yard.
The work is part of a $150-million subsea, umbilical, riser and flowline (SURF) contract the company announced in September last year.
The contract scope includes project management, engineering, procurement, construction and installation of gas export pipeline connected to the Central Area Transmission System (CATS), and a pipe-in-pipe providing insulation for the transportation of the condensate to the in-field Floating, Storage and Offloading facility (FSO).
Subsea 7 will also provide subsea structures, tie-ins to the Culzean platform facilities and pre-commissioning expertise.
The company plans to start offshore operations in 2017.
Culzean is an ultra-high-pressure, high-temperature field located about 242 kilometers (145 miles) east of Aberdeen in the UK sector of the Central North Sea.
Production from the field is expected to start in 2019 and continue for at least 13 years, with plateau production of 60,000-90,000 barrels of oil equivalent per day.
Related News:Subsea 7 plans to cut workforce by 1000
Subsea engineering, construction and services company Subsea 7 has informed that a second phase of global resizing and cost reduction measures will begin in 2016.
The group said on Wednesday that these measures are being done in view of continued difficult business and economic conditions in the oil and gas market. The company plans to resize its global workforce to approximately 8,000 by early 2017, down from the current level of 9,200.
According to the company, consultation with employees and employee representatives will take place on a local basis and consultation processes have begun in Norway and the UK. Subsea 7’s fleet of active vessels will be managed commensurate with the projected workload, while retaining capability and maintaining a global presence.
Up to five vessels are scheduled to leave the current active fleet by early 2017, based on stacking owned vessels and returning chartered vessels when existing contracts expire.
These cost reduction and resizing measures, together with those already initiated since the start of the year, are expected to deliver approximately $350 million in annualized cost savings. The charge related to the resizing will be recognized in 2016 and is expected to be less than $100 million.