Oil & Gas News

Subsea 7 Awarded Mad Dog 2 Contract

Subsea 7 announces the award of a large(1) contract by BP as part of the deepwater Mad Dog 2 development, located approximately 190 miles south of New Orleans.

3Subsea7 MadDog copyThe contract scope covers engineering, procurement, construction and installation (EPCI) of the subsea umbilicals, risers and flowlines (SURF) and associated subsea architecture.

Subsea 7 has worked closely with BP to deliver a lump sum integrated solution from design through to supply, installation and commissioning. Furthermore, by collaborating with OneSubsea, a Schlumberger company, our Subsea Integration Alliance(2) partner that has been awarded the Subsea Production Systems (SPS) contract, 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.

Together the SURF and SPS contract awards are a significant endorsement of our Alliance offering and confirmation of the client's high level of interest in this approach, and in Subsea 7 as a key partner. This is also the first substantial project in the US to use Subsea 7' Swagelining(3) polymer lining technology.

Project management and engineering will take place in Houston, Texas with support from Subsea 7's Global Project Centre in London, UK. 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."

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