Africa Oil & Gas: Shell awards Egypt EPC contract to Subsea 7

Subsea 7_construction_vessel_Seven_mozambiqueminingpostShell has awarded the Oslo-listed contractor, Subsea 7, a contract as part of its latest gas development project offshore Egypt, Subsea 7 announced June 13.

The award is the engineering, procurement, installation and commissioning contract by the Shell-led Burullus Gas Company for the West Delta Deep Marine (WDDM) phase 9b development project. Scope includes connecting six new wells into existing subsea facilities, using umbilicals and flexible flowlines.

Project management and engineering work has already begun at Subsea 7’s offices in Cairo and Paris. Fabrication of the subsea structures and spools will be carried out at Petrojet’s yard near Alexandria, Egypt. Offshore work is scheduled to commence in 2H 2019. Subsea 7 defines a sizeable contract as being worth between $50mn and $150mn.

Shell executive vice president Sami Iskander said in Cairo in April that the company would start the WDDM phase 9b development by the end of June 2018, according to online newspaper Egypt Today.

The project had been under discussion for over two years and the previous owner, BG, had delayed it owing to uncertainty about the government’s ability to pay for the gas.

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