Subsea 7 (OL: SUBC) has indicated it is nearly complete on its UK contract for the Shell Penguins project.
The firm was awarded an engineering, procurement, construction and installation (EPCI) deal on the redevelopment in 2018, covering production flowlines, gas lift flowlines, control systems, riser systems, export pipelines and associated subsea tie-ins.
In a presentation for its third quarter results, Subsea 7 said work on the Penguins contract is now 90% complete.
The firm also disclosed that the deal is “sizeable”, worth between $50m – $150m.
Penguins, a redevelopment of a tie-back field to the Brent Charlie hub, has been waiting on the arrival of its FPSO from China.
The vessel had been due to leave in March 2021 but has been hit by Covid and lockdown-related delays.
Last month, Shell CFO Sinead Gorman said there is no confirmed date for when the vessel will head for the North Sea.
Pierce and other projects
Subsea 7 also named the Shell Pierce scheme – another redevelopment – as one of its projects during Q3.
Shell said last month that it expected first gas by year-end.
Elsewhere, Subsea 7 said work on the IOG Blythe and Vulcan satellite fields in the southern North Sea – a deal also worth $50m – $150m – was over 90% complete.
Work on its contract for the Dogger Bank offshore wind farm is 30% complete, it said.
Subsea 7 reported net income of nil during the third quarter of the year, versus a profit of $45m in the same period during 2021.
The change was due to a $25m net income decrease, alongside foreign currency exchanges – a benefit of $27m last year has now tipped in balance to a loss of $25m during this period.
CEO John Evans pointed to operational highlights during the quarter, including a new JV with SLB and Aker Solutions and new financing for its renewables arm Seaway 7, which he said was still “materially undervalued” on share price.
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