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Luxembourg – 2 June 2021 - Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) announced today the award of a major(1) contract by Equinor to Subsea Integration Alliance(2) for the Bacalhau field development located 185 kilometres from the coast of the state of São Paulo, Brazil.
The project work scope covers the engineering, procurement, construction and installation (EPCI) of the subsea pipelines (SURF) and production systems (SPS). The development will include 140 kilometres of rigid risers and flowlines, 40 kilometres of umbilicals and 19 trees, as well as associated subsea equipment, in water depths of approximately 2050 metres.
The Subsea Integration Alliance team established during the initial front-end engineering design phase, awarded in January 2020, will now transition into the full EPCI phase. Project management and detailed engineering will take place in Rio de Janeiro, Brazil, with support from Subsea 7’s Global Project Centre in UK and France and various OneSubsea® offices. Offshore activities will take place from 2022 to 2023 using Subsea 7’s reel-lay, flex-lay and light construction vessels.
Bacalhau is Brazil’s first integrated SURF and SPS project. The award today is a significant endorsement of Subsea Integration Alliance’s strong position within the integrated market, Subsea 7’s long-established local presence in Brazil and the Group’s commitment to support Equinor’s strategy of long-term growth in the region.
Stuart Fitzgerald, CEO Subsea Integration Alliance said: “The award to Subsea Integration Alliance of the EPCI contract is a result of our strategy for early engagement and track record of major integrated projects. It underlines the strength and breadth of our global project management capabilities which underpin our delivery of large and complex integrated projects.”
Marcelo Xavier, Subsea 7 Vice-President Brazil, said: “This contract award extends our track record of delivering optimised solutions for deepwater developments in Brazil. We look forward to strengthening our relationship with Equinor during this and future developments.”
(1) Subsea Integration Alliance is a non-incorporated 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 select, design, deliver and operate the smartest subsea projects. This eliminates costly revisions, avoids delays and reduces risk across the life of field. For more information, visit www.subseaintegrationalliance.com.
(2) Subsea 7 defines a major contract as being one where Subsea 7’s share of revenue is over USD 750 million.
Subsea 7 is a global leader in the delivery of offshore projects and services for the evolving energy industry. We create 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:
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Tel +44 1224 265733
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.