Mermaid and MCS Subsea have signed a provisional deal to work on EnergyPathways Marram gas development in the East Irish Sea.
Announced on Thursday the memorandum of understanding will see the two firms provide subsea FEED engineering, project support, procurement and offshore construction services on the project.
EnergyPathways (AIM:EPP) said it has already contracted with MCS and Mermaid for initial work orders, the results of which will allow it to work on a final scope and contract in due course.
Owned and operated by EnergyPathways, Marram has been touted as a “ready-to-go” gas development in shallow water in the East Irish Sea.
Located in Block 110/4a in licence P2490 the gas field lies close to existing infrastructure and the developed Morecambe gas complex, and holds just over 35 billion cubic feet (bcf) of undeveloped 2P gas reserves.
The project concept involves a “simple low-cost” two-well subsea tieback development with first production targeted for 2025.
EnergyPathways was listed in London in December after a reverse takeover by special purpose acquisition vehicle Dial Square.
A fundraising round will be used to progress the Marram project through to a final investment decision (FID) this year.
Speaking to Energy Voice last month CEO Ben Clube said the firm “already have offers” for debt financing of the development and plans to get it to FID within 6-9 months.
Marram will represent the first UK development project on which MCS and Mermaid will collaborate from FEED to commissioning. The two firms intend to source specific vessels for the scheme and launch a global subsea procurement process.
They also plan to deploy the use of a mechanical interference fit connection system – Zap-Lok – for the submarine pipeline. Marram is set to use diverless connection systems for shallow water, reducing the risks associated with the use of manned dive operations for pipeline tie-in operations.
Commenting on the MoU, Mr Clube said: “The signing of this MoU is an important step in ensuring the necessary subsea expertise and project support capabilities are in place to deliver the Marram Project utilising cost-effective and timely project delivery solutions.
“The Marram Project will provide affordable and reliable low emission energy to the UK market, while offering security of energy supply and commercial returns to our investors.”
Mermaid Subsea Services UK regional director Scott Cormack added: “Delivering on the UK Government’s strategy of Maximising Economic Recovery of offshore oil and gas reserves, while also ensuring an orderly transition to net zero, is core to Mermaid’s business, and this MoU is further evidence of that.”
A subsidiary of Singapore-listed Mermaid Maritime (SGX:MMPC), the firm launched its North Sea arm in early 2020 targeting a gap for smaller and mid-level work scopes and dive operations that may be overlooked by larger contractors.
It has since secured a string of contracts supporting well decommissioning across the basin.
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