Subsea7 reveals Shell behind ‘sizeable’ Gulf of Mexico EPCI contract

Subsea7 reveals Shell behind ‘sizeable’ Gulf of Mexico EPCI contract

Following the announcement of a “sizeable” contract award in mid-August with an unknown client, Luxembourg-domiciled Subsea7 has now revealed that the contract is for Shell’s waterflood project in the U.S. Gulf of Mexico.

Subsea7 will provide engineering, procurement, construction, and offshore installation (EPCI) of a water injection flowline, hull piping, and associated subsea infrastructure for an enhanced oil recovery project at Shell’s deepwater Vito platform.

Project management and engineering will commence right away at the company’s office in Houston, Texas, with offshore activity expected to start in 2026.

Craig Broussard, Subsea7’s Senior Vice President in the region, said: “We’re very pleased to join the Vito waterflood project, which demonstrates how we can use enhanced recovery methods to maximize existing reservoirs for lower-carbon oil and gas production. Our expertise and track record at all depths means we are ideally placed to support its delivery.”

The Vito field, discovered in July 2009, is located in more than 4,000 feet of water approximately 75 miles south of Venice, LA, 150 miles southeast of New Orleans, and 10 miles south of the Shell-operated Mars TLP.

Shell as the operator (63.11%) and Equinor (36.89%) took the final investment decision (FID) for the development in April 2018, with the first oil achieved in February 2023.

This August, the FID was taken on the waterflood project at the asset, with the goal of allowing water to be injected into the reservoir formation to displace additional oil.

The Vito waterflood project will increase recoverable resource volume by 60 million boe, with the process expected to begin in 2027.

Published: 08-09-2024