TechnipFMC has bagged an integrated engineering, procurement, construction and installation (iEPCI) contract from Neptune Energy for the Seagull oil project in the UK waters of the Central North Sea.

The exact value of the contract was not disclosed but TechnipFMC revealed it to be in the range of $75-$250m (£60.23-200.78m).

TechnipFMC’s scope in the Seagull oil project

Under the contract, TechnipFMC will be responsible for construction and installation of the wellheads, an umbilical, Xmas trees, flowlines, a subsea wye structure, a four-slot manifold, and a subsea control system.

The contract was awarded to the company under a recently signed five-year global alliance agreement it signed with Neptune Energy. Prior to this, TechnipFMC was awarded and iEPCI contract in April 2019 from Neptune Energy under the same alliance agreement for the Duva and Gjøa P1 projects offshore Norway.

TechnipFMC subsea president Arnaud Pieton said: “Our alliance clearly demonstrates the importance and value of early engagement and collaboration as well as our ability to offer clients a full suite of services and global experience.

“We look forward to expanding our working relationship through the development of fields such as Seagull. As architects of our clients’ projects and through the adoption of collaborative working methods, we can bring more efficient, repeatable solutions to our clients that increase value, reduce engineering interfaces and time to market.”

The offshore construction campaign for the Seagull oil project is slated to begin in the second quarter of 2020.

In March 2019, Neptune Energy and its partners BP and JAPEX took a final investment decision for the development of the Seagull oil field, which is a high pressure, high temperature development, contained in Block 22/29C, in the P1622 license. Neptune is the operator of the Seagull oil project and has a 35% stake, while BP and JAPEX, hold stakes of 50% and 15%, respectively.

The Seagull oil field is planned to be tied back to the BP-operated ETAP Central Processing Facility (CPF), which produces from the Eastern Trough Area Project. The Seagull oil project is expected to initially draw close to 50,000 barrels of oil equivalent (boe) per day through its 10-year design life.

Neptune Energy UK managing director Pete Jones, said: “Seagull is an exciting project and shows what can be achieved through a collaborative and innovative approach. Using existing infrastructure and unlocking production, it fully supports the objectives of the Maximising Economic Recovery (MER) UK strategy.”