The 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** 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's Swagelining*** 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.
* Contract term: Subsea 7 defines a large contract as being between USD 300 million and USD 500 million.
** Subsea Integration Alliance is a worldwide non-incorporated partnership between OneSubsea, Schlumberger, and Subsea 7 developed to jointly design, develop, and deliver integrated subsea development solutions through the combination of subsurface expertise, subsea production systems (SPS), subsea processing systems, subsea umbilicals, risers and flowlines systems (SURF), and life of field services.
Its goal is delivering complementary technology and expertise that help customers extend field life and lower production costs, ensuring greater certainty of recovery and return on the investment.
*** Swagelining Limited is a Subsea 7 company. It designs and installs polymer lining systems for strategic pipeline and riser systems. The company is at the forefront of the drive to extend polymer lining technology to provide internal corrosion protection in carbon steel pipes, transporting corrosive or erosive products under high pressure.