Shell has awarded Subsea 7 an engineering, procurement, construction and installation contract for the Penguins redevelopment project in the UK North Sea.
The contract involves fabricating two pipeline bundles, which comprise pipe-in-pipe production flowlines, gas lift flowlines and control systems. It also involves fabricating a 9 km 16 inch gas export pipeline, a flexible riser system, a dynamic umbilical riser system and associated subsea tie-ins.
In January, Shell announced it had made a final investment decision authorising redevelopment of its Penguins oil and gas field in the North Sea. This will involve construction of a floating production, storage and offloading (FPSO) vessel.
The field currently processes oil and gas using four drill centres tied back to the Brent Charlie platform. When Brent Charlie ceases production a further eight wells will be drilled, tied back to the FPSO vessel.
The Penguins field is in 165 m of water, roughly 240 km northeast of the Shetland Islands. Discovered in 1974, the field was first developed in 2002 and is a joint venture between Shell and ExxonMobil.
Subsea 7 will start project management and engineering work from Aberdeen immediately with support from its Glasgow-based technical specialist Pipeline Group. Offshore work is scheduled for 2020 and 2021.