Subsea 7 plans to cut its workforce by almost 20% and reduce its fleet by up to 11 vessels. The move has been made as a result of the oil price decline since last year. The company, which focuses on the North Sea, expects to reduce its workforce by 2,500 by early next year.
Subsea 7 has been awarded a $300million contract from Wintershall Norge AS for the Maria field development in the Norwegian Sea. The company will carry out a pipeline and subsea construction contract which consists of engineering, procurement, construction and installations to develop the field.
Subsea 7 has increased its earnings and margins despite the decline in oil price. The company has also secured more new orders than had previously been forecasted. Subsea 7, which specialises in underwater constrcution, said its operating profit had rised to $176million from $160million a year previously.
Subsea 7 has been awarded a contract worth $200million for the installation of flexible lines for Petrobas’ projects. The contract will used Subsea 7’s construction and flex-lay vessel Seven Sea on a day-rate basis. The vessel has been operating for Petrobas under a similar day-rate contract since 2013 and will commence the new contract in direct continuation to the current one.
Subsea 7 has refused to say if more jobs will go across its global operations after it revealed 1,000 were shed in 2014. The energy service giant is also reducing its fleet capability by 10 vessels over a two-year period as it continues to look for ways to slash costs in the wake of the big drop in oil prices.
Subsea 7 refused to say yesterday if more jobs will go across its global operations after it revealed 1,000 were shed in 2014. The energy service giant also outlined plans to reduce its fleet capability by 10 vessels over a two-year period as it continues to look for ways to slash costs in the wake of the big drop in oil prices. Hefty losses for the firm in 2014 – more than £150million at pre-tax level – were the latest blow for company balance sheets right across the sector as it adjusts to a new trading climate. Subsea 7 said its latest figures were hit by a £774.4million writedown due to an expected downturn in activity, and without it net profits came in at £525.4million.
Subsea 7 has been awarded a two-year extension by Shell for two Underwater Services Contracts (USCs) worth $240million. The company said the Life of Field contract extensions for Diving Support Vessel (DSV) and Remotely Operated Vehicle Support Vessel (ROVSV) services will both commence in 2016. Subsea 7 will also continue to provide subsea construction, inspection, repair and maintenance and decommissioning services to Shell’s UK offshore fields and facilities.
Subsea 7 has been awarded a contract by Woodside Energy for its Persephone development off the coast of Australia. The Persephone project consists of two wells tied into a subsea production manifold with production fluids transported to the existing North Rankin Complex (NRC). The contract comprises fabrication, transportation, installation and pre-commissioning activities.
Subsea 7 has been awarded a contract by the Hess Corporation for installation work on the Stampede Project in the Gulf Of Mexico. The deal includes work on flowlines, steel catenary risers, umbilicals, jumpers and associated subsea architecture which will tie-back two drill centres to a tension leg platform. The company said production would be via two 10-inch flowlines from each drill centre.