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Shell awards Subsea 7 contract for North Sea redevelopment project

Royal Dutch Shell PLC awarded subsea engineering and construction services firm Subsea 7 SA an engineering, procurement, construction and installation contract for its Penguins Redevelopment Project in the North Sea.

Subsea 7 will fabricate two Pipeline Bundles containing pipe-in-pipe production flowlines, gas lift flowlines and control systems, as well as a nine-kilometer, 16-inch gas export pipeline, flexible riser system, dynamic umbilical riser system and associated subsea tie-ins for the project located approximately 150 miles northeast of the Shetland Islands.

Project management and engineering work will commence immediately in Aberdeen, with support from Subsea 7's specialist technical Pipeline Group in Glasgow. Offshore activities are scheduled for 2020 and 2021.

The Penguins field is a joint venture between Shell, which is a 50% owner and operator, and Exxon Mobil Corp., which owns the remaining 50%.