Serica Energy (AIM: SQZ) has awarded Subsea7 a “sizeable” contract to supply a pipeline for the company’s Belinda field development south-east of the Triton FPSO.
The contract, which Subsea 7 said is between $50m and $150m, scope includes project management, engineering, procurement, construction and installation (EPCI) of a five kilometre eight-inch production pipeline with a three-inch piggy-backed gas lift line and an electro-hydraulic controls (EHC) umbilical.
Subsea7’s scope also includes associated subsea structures and tie-ins to the Triton Floating Production Storage & Offloading (FPSO) vessel operated by Dana Petroleum, via an existing production manifold near the Triton riser base and for controls at the Evelyn valve skid.
Project management and engineering work will commence immediately in Aberdeen. The offshore activities are scheduled for the third quarter of 2025.
Serica Energy took a final investment decision on the project last month, though it warned that UK fiscal policy had delayed the move, with the NSTA consenting the project on 17 May.
The Belinda field is operated by Serica Energy and located approximately 190km east of Aberdeen in the UK Central North Sea, with a water depth of 95m.
It is estimated to hold P50 reserves of about four million barrels of oil and five billion cubic feet of gas, Belinda is set to be developed as a tie-back to the Triton FPSO.
As the 100% owner, making a final investment decision (FID) would have been easy to justify under normal conditions. That being said, the windfall tax, or energy profits levy, has created instability in the UK market, the firm outlined.
Steve Wisely, senior vice-president of UK and global inspection, repair and maintenance, Subsea7, said: “We are pleased to have this opportunity to supply Serica Energy with EPCI knowledge and demonstrate the extensive North Sea expertise we have amassed over 50 years. We look forward to supporting the safe, efficient and timely execution of this project.”
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