Subsea 7 wins $60MM contract to link Ensign to Audrey in the North Sea

Source: Subsea 7 S.A.

Subsea 7 S.A. (NASDAQ: SUBC) announced the award of an engineering, procurement, installation and commissioning contract from Centrica Energy Upstream for the flowlines and subsea works on the Ensign Project, approximately 18km North West of the Audrey ‘A’ platform, located over Block 48/14 and 48/15 of the UK Sector of the North Sea. The contract is valued at approximately $60 million and is part of Subsea 7’s long-term partnership agreement with Centrica Energy Upstream.

Subsea 7’s work scope is to engineer, procure, install, tie-in and pre-commission 24km of 10" gas and 2" methanol pipelines - connecting the new un-manned Ensign satellite platform with the existing subsea pipelines at the Audrey ‘A’ platform. In addition, Subsea 7 will engineer, procure, install, tie-in and pre-commission 2km of 10” gas pipeline and associated control umbilical connecting the Ensign platform to a new subsea well.

Engineering, project management and procurement for the Ensign Project is underway at Subsea 7's Aberdeen office. Fabrication of the rigid pipelines will take place at Subsea 7's North Sea Spoolbase at Vigra, Norway with installation taking place during the third quarter of 2011, utilizing Subsea 7’s pipelay and construction vessels.

Oeyvind Mikealsen, Subsea 7's Senior Vice President, North Sea, Mediterranean & Canada said: “This significant award further strengthens Subsea 7’s unique long-term partnership with Centrica Energy Upstream, which recently celebrated its five-year anniversary. Over the past five years, we have safely and successfully delivered numerous North Sea projects together whilst maximizing efficiencies through security of supply and early engagement in the planning and design process. We look forward to similar success with the Ensign Project over the coming year.”

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