Subsea 7 wins engineering contract for Shell’s Penguins project

Energy giant Shell has handed Subsea 7 a contract to perform engineering work for its Penguins development in the North Sea.

Oil field service giant Subsea 7 will make pipeline bundles, flowlines and control systems for the field, located 150 miles north-east of Shetland.

Subsea 7 will also supply a 5.5-mile-long gas export pipeline, a flexible riser system, a dynamic umbilical riser system and associated subsea tie-ins.

Project management and engineering work will start straight away in Aberdeen, with support from Subsea 7’s pipeline group in Glasgow.

Offshore activities are scheduled for 2020 and 2021.

The contract value was not disclosed.

Jonathan Tame, Subsea 7’s vice-president, UK and Canada, said: “Following the successful conclusion of a competitive design competition, we are pleased to have the opportunity to bring our extensive expertise to a project of this importance.

“In doing so it demonstrates Shell’s confidence in our value-adding solutions, and continues a successful North Sea collaboration that has been in place since 1984.”

Announcing a final investment decision in January, Shell said the construction phase for Penguins would create work for 300 to 400 people in the UK.

The project will involve the construction of Shell’s first new manned installation in the northern North Sea in almost 30 years.

The Penguins cluster was first developed in 2002 and produces via a subsea tieback to the Brent Charlie platform.

The aging Charlie platform is expected to retire in a few years, which means Shell needs another way of producing from Penguins.

Eight new wells will be drilled and tied back to a new FPSO.

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