TechnipFMC in ‘Significant’ PowerNap Project Award
Oilfield services provider TechnipFMC will be supplying subsea equipment for Shell’s PowerNap subsea tie-back development in the U.S. Gulf of Mexico. Shell made the final investment decision for the project earlier in August.
TechnipFMC said on Thursday the contract was a “significant” one, meaning the value is between $75 million and $250 million.
Under the contract, TechnipFMC will design, manufacture and install subsea hardware, including subsea tree systems, subsea distribution controls, topside controls, flying leads and connectors for three wells, in addition to the supply of 20 miles of production umbilical and flowlines.
PowerNap is a subsea tie-back project to the Olympus production hub and is located in Mississippi Canyon, Block MC943 in the Gulf of Mexico. The project is expected to complete installation in late 2021 and produce up to 35,000 barrels per day of oil equivalent at peak rates.
Announcing the FID earlier this month, Shell said that the PowerNap – discovered in 2014 – was anticipated to have a forward-looking break-even price of less than $35 per barrel and was estimated to contain more than 85 million barrels of oil equivalent recoverable resources.
The Shell-operated (71.5%) Olympus production hub is co-owned by BP Exploration and Production Inc. (28.5%). Production at Olympus began in 2014.
PowerNap production will be transported to market on the Mars pipeline, which is operated by Shell Pipeline Company LP and co-owned by Shell Midstream Partners, L.P. (71.5%) and BP Midstream Partners LP (28.5%).