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Shell taps Subsea 7 to service Vito project in deepwater Gulf of Mexico

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Shell taps Subsea 7 to service Vito project in deepwater Gulf of Mexico

Royal Dutch Shell PLC has awarded Subsea 7 SA a contract valued between $50 million and $150 million for services as part of its deepwater Vito project in the Gulf of Mexico.

Under the contract, Subsea 7 will provide the Vito development with project management, engineering, procurement, installation and pull-in of two 12-inch infield production flowlines with 10-inch steel catenary risers, one gas lift flowline and steel catenary risers and the umbilical system.

Project management and engineering will take place in Houston with support from Subsea 7's specialist technical Pipeline Group in Glasgow, U.K. Offshore installation activities are scheduled for 2020 and 2021.

Anglo-Dutch major Shell made its final investment decision for Vito in late April. The project, situated approximately 150 miles south of New Orleans in the Gulf of Mexico, is expected to reach peak production of approximately 100,000 barrels of oil equivalent per day.

With a 63.11% ownership stake, Shell Offshore Inc. operates Vito while Equnior, formerly known as Statoil ASA, owns a 36.89% interest in the project.