Bahr Essalam contract awarded to OneSubsea

20 May 2015

Source says the Libyan offshore deal is worth around $450m

  • Work involves design, procurement, manufacturing and fabrication of a subsea production system
  • Three contractors submitted bids
  • Project has seen significant delays due to instability in Libya

Mellitah Oil & Gas, a joint venture of Italy’s Eni and Libya’s National Oil Company (NOC), has awarded the US-based One Subsea a contract for the design, procurement, manufacturing and fabrication of a subsea production system for phase two of its Bahr Essalam project.

One Subsea is a joint venture of two US oil field service companies, Cameron and Schlumberger,

A source close to the tendering process declined to give the exact value of the contract, saying only that the price submitted by One Subsea was in the region of $450m.

Three contractors are thought to have submitted bids for the project. They are:

  • OneSubsea (US)
  • GE Oil & Gas (Italy)
  • FMC Technologies (US)

The scope of work for the subsea package encompasses detail design, procurement, manufacturing, fabrication, testing, integration testing, load out, sea fastening, delivery, technical assistance and supervision during installation, pre-commissioning and commissioning of the following equipment: 

  • Subsea Christmas tree systems and related protective structures 
  • Workover/completion system and workover control system 
  • Subsea production controls system including topside control system and subsea control system
  • Production controls umbilicals to manifolds 
  • Electro-hydraulic jumpers and end terminations
  • Remotely operated vehicles tooling 
  • Testing, handling and shipping equipment

The project has seen significant delays due to the political instability seen since the country’s 2011 uprising.

In February 2013, Mellitah Oil & Gas said it intended to initiate the tender for the development of the subsea production system in the second quarter of 2013 with an estimated award date in the first quarter of 2015. Under this time frame, the start date of the subsea facilities was going to be the fourth quarter of 2015.

Phase two of the Bahr Essalam development will deliver gas and condensates from 13 new subsea wells at the C-central and C-east area of the field to the existing Sabratha gas processing platform, where they will be partially treated and sent by a 110-kilometre pipeline to the onshore Mellitah plant.

The eastern area will include 10 wells divided into two cluster manifolds, which will be connected to existing risers on the Sabratha platform. A new cluster will also be built for two wells in the central area. The final well, which has already been drilled, will be completed and connected to a dedicated line to Sabratha.

Libya’s offshore production is dominated by the Bouri field, which sits within the NC-41 concession and is jointly operated by Italy’s Eni and state-owned National Oil Corporation (NOC), through the Mellitah Oil & Gas venture. In 2010, production capacity was about 45,000 barrels a day (b/d).

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