Saudi Arabian Oil Co. awarded a contract to a consortium of Subsea 7 SA and Larsen & Toubro Ltd. subsidiary L&T Hydrocarbon Engineering Ltd. for the second package of its Marjan field increment projects offshore Saudi Arabia.
Subsea 7's share in the engineering, procurement, construction and installation, or EPCI, contract is valued between $300 million and $500 million, which is classified as a "large" contract, according to a Sept. 10 news release from the company.
The scope of work includes EPCI of new tie-in platforms, production deck manifolds, around 217 kilometers of rigid pipelines, about 145 kilometers of power cables and a fiber optic cable in the Marjan field in depths of around 45 meters to 52 meters. Offshore execution is scheduled for 2021 and 2022.
The consortium was earlier awarded an EPCI contract for other offshore work, also by Saudi Arabian Oil, also known as Saudi Aramco.
The Marjan development program aims to increase the field's production by 300,000 barrels of medium crude oil per calendar day, process 2.5 billion standard cubic feet per day of gas and produce an additional 360,000 barrels per day of ethane plus natural gas liquids.
In a separate release, Subsea 7 announced the retirement of CEO Jean Cahuzac at the end of the year. He will be replaced by COO John Evans on Jan. 1, 2020. Cahuzac will serve as a non-executive director following his retirement.
Cahuzac has served as CEO of the company since 2008, while Evans has been COO since 2005.
