UK Subsea 7 wins Egypt’s Pharaonic Petroleum EPCI Deal

The UK-based subsea engineering, construction and services company Subsea 7 announced Thursday it has been awarded a “substantial” contract by the Pharaonic Petroleum Company offshore Egypt.

Under the agreement, the global contractor will provide services at water depths of 900 metres (2,952 feet) in the Atoll field.

“We are delighted to strengthen our presence in Egypt. This substantial contract award recognises our technical expertise and track record of strong execution for Pharaonic Petroleum Company,” Subsea 7’s Region Vice President for Africa, Gilles Lafaye, said.

Subsea 7 Scores EPCI Deal Offshore Egypt

The scope of the contract includes the engineering, procurement, construction and installation (EPCI) of more than 40 kilometres (24.85 miles) of rigid pipelines and associated structures.

The services will be provided at the new Atoll field, tying into the existing Taurt field at a water depth of 100 metres (328 feet), the company explained.

As well as this, a 105 kilometre (65.24 miles) umbilical will also be installed to connect the Atoll field to the shore.

In the meantime, the engineering and procurement services have already commenced.

Offshore campaigns are expected to take place during the second half of 2017 and the beginning of 2018.

The campaigns will use the Seven Borealis, Seven Eagle and Seven Arctic vessels owned by Subsea 7.

Atoll to Start Production in 2018

Subsea 7 defines a substantial contract as being between US$150 million (£122 million) and US$300 million (£244 million).

The Atoll gas field lies in the North Damietta Concession in the East Nile Delta.

The field is expected to start production in 2018 and will be developed by BP in collaboration with EGAS.

The project development has been accelerated to establish a new hub offshore and help reduce Egypt’s gas deficit.

With this project, BP expects to raise its gas production in Egypt and achieve 2.5 billion cubic feet per day of production by 2020, approximately 50% of Egypt’s current gas output.

Pharaonic Petroleum, BP’s joint venture with EGAS and Eni, will execute and operate the project.

Source: Offshore Post