Luxembourg – 2 July 2021 - Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) today announced the award of a sizeable(1) contract by OKEA to Subsea Integration Alliance(2) for the Hasselmus project, seven kilometres north west of the Draugen platform in the southern Norwegian Sea.
The project work scope covers the engineering, procurement, construction, and installation (EPCI) of the subsea production systems (SPS) and subsea pipelines (SURF) for a single subsea well with direct tie-back to the Draugen production platform. The SURF scope comprises approximately nine kilometres of pipe-in-pipe flowline and associated structures in water depths of approximately 250 metres.
Project management and engineering will commence immediately at Subsea 7’s offices in Stavanger, Norway. Fabrication of the pipelines will take place at Subsea 7’s spoolbase at Vigra, Norway and offshore operations will be executed in 2022 and 2023.
Monica Bjørkmann, VP Subsea 7 Norway said: “We are delighted to be awarded this contract by OKEA. It acknowledges the value potential of Subsea Integration Alliance’s seamlessly integrated and optimised offering, and extends our relationship with OKEA that began with conceptual studies. We look forward to continuing the journey on the Hasselmus field development with safety, reliability and quality at the forefront throughout.”
Stuart Fitzgerald, CEO Subsea Integration Alliance LLC said: “This award to Subsea Integration Alliance supports our strategy for early engagement, full subsea system delivery, and our track record with OKEA. Working in partnership with OKEA has supported optimised solutions, early decision making and shortened delivery time, ultimately improving cost efficiency throughout the entire field lifecycle. We look forward to continuing to support this objective for the Hasselmus project”.
(1) Subsea 7 defines a sizeable contract as being between USD 50 million and USD 150 million.
(2) Subsea Integration Alliance is a strategic global alliance between Subsea 7 and OneSubsea®, the subsea technologies, production and processing systems division of Schlumberger, bringing together field development planning, project delivery and total lifecycle solutions under an extensive technology and services portfolio. As one team, Subsea Integration Alliance amplifies subsea performance by helping customers to define, select, install and operate the smartest subsea projects, that eliminate costly revisions, delays and reduces risk across the life of field.
Subsea 7 is a global leader in the delivery of offshore projects and services for the evolving energy industry, creating sustainable value by being the industry’s partner and employer of choice in delivering the efficient offshore solutions the world needs.
Subsea 7 is listed on the Oslo Børs (SUBC), ISIN LU0075646355, LEI 222100AIF0CBCY80AH62.
Contact for investment community enquiries:
Investor Relations Director
Tel +44 (0)20 8210 5568
Contact for media enquiries:
Jan Roger Moksnes
Communications Manager, Norway
Tel +47 415 15 777
Forward-Looking Statements: This announcement may contain ‘forward-looking statements’ (within the meaning of the safe harbour provisions of the U.S. Private Securities Litigation Reform Act of 1995). These statements relate to our current expectations, beliefs, intentions, assumptions or strategies regarding the future and are subject to known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements may be identified by the use of words such as ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘future’, ‘goal’, ‘intend’, ‘likely’ ‘may’, ‘plan’, ‘project’, ‘seek’, ‘should’, ‘strategy’ ‘will’, and similar expressions. The principal risks which could affect future operations of the Group are described in the ‘Risk Management’ section of the Group’s Annual Report and Consolidated Financial Statements for the year ended 31 December 2020. Factors that may cause actual and future results and trends to differ materially from our forward-looking statements include (but are not limited to): (i) our ability to deliver fixed price projects in accordance with client expectations and within the parameters of our bids, and to avoid cost overruns; (ii) our ability to collect receivables, negotiate variation orders and collect the related revenue; (iii) our ability to recover costs on significant projects; (iv) capital expenditure by oil and gas companies, which is affected by fluctuations in the price of, and demand for, crude oil and natural gas; (v) unanticipated delays or cancellation of projects included in our backlog; (vi) competition and price fluctuations in the markets and businesses in which we operate; (vii) the loss of, or deterioration in our relationship with, any significant clients; (viii) the outcome of legal proceedings or governmental inquiries; (ix) uncertainties inherent in operating internationally, including economic, political and social instability, boycotts or embargoes, labour unrest, changes in foreign governmental regulations, corruption and currency fluctuations; (x) the effects of a pandemic or epidemic or a natural disaster; (xi) liability to third parties for the failure of our joint venture partners to fulfil their obligations; (xii) changes in, or our failure to comply with, applicable laws and regulations (including regulatory measures addressing climate change); (xiii) operating hazards, including spills, environmental damage, personal or property damage and business interruptions caused by adverse weather; (xiv) equipment or mechanical failures, which could increase costs, impair revenue and result in penalties for failure to meet project completion requirements; (xv) the timely delivery of vessels on order and the timely completion of ship conversion programmes; (xvi) our ability to keep pace with technological changes and the impact of potential information technology, cyber security or data security breaches; and (xvii) the effectiveness of our disclosure controls and procedures and internal control over financial reporting;. Many of these factors are beyond our ability to control or predict. Given these uncertainties, you should not place undue reliance on the forward-looking statements. Each forward-looking statement speaks only as of the date of this announcement. We undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.