Subsea 7 nets Shell contract offshore UK, acquires 4Subsea
Valued at $50-150 million (€45.5-136.6 million), the contract includes the engineering, procurement, construction, transportation and installation (EPCI and T&I) of a 30km gas export pipeline, as well as a gas export riser and associated subsea infrastructure.
Project management and engineering has already begun at Subsea 7’s Aberdeen office, with offshore activities slated for 2020 and 2021.
“This award recognises our extensive knowledge of Shell’s North Sea developments, gained over almost 30 years of working closely together to deliver safe and cost-effective construction, inspection, repair and maintenance operations across Shell’s European offshore fields and facilities,” commented Jonathan Tame, vice-president for UK and Canada.
Acquisition of 4Subsea
The company also recently announced the acquisition of 4Subsea, a provider of technology and services that supports oil and gas, as well as offshore wind, operators around the world. 4Subsea will function autonomously within Subsea 7, with the company’s Peter Jenkins continuing in his role as CEO.
“We regard the acquisition of 4Subsea as an important opportunity for Subsea 7 to expand its digital capability and offering,” said Stuart Fitzgerald, executive vice-president of alliances and strategy at Subsea 7. “4Subsea digital insights will create value for Subsea 7 in both our services provided to customers, and to improve efficiency within our own operations and delivery.
“4Subsea’s experienced team of subsea domain experts and data scientists provides innovative digital solutions to energy operators, reducing operational risk, cost and providing actionable insights. We are delighted that the 4Subsea team is now part of our Group, and we look forward to jointly delivering enhanced value to our customers.”
The two companies aim to work towards monitoring key operational data on Subsea 7 vessels, contributing to the digitalisation of the company’s marine operations. By using advanced algorithms and artificial intelligence, 4Subsea will deliver key insights and decision support with digital twins to optimise these activities.
Jenkins commented: “We are proud and happy to become a Subsea 7 company, as we regard this as an excellent opportunity to scale our technology and services to a larger market. We aim to combine our ability to deliver quick and targeted business value within well intervention, drilling, subsea operations, and offshore wind with Subsea 7’s strong position as a leading player within the subsea and renewables market.
“We believe there is significant value to energy operators in combining our services with Subsea 7’s Field Development and Life of Field business. In addition, we can create value within Subsea 7 with the vessel monitoring project, in the same way we have developed digital twins for subsea production and drilling.”