BHP awarded McDermott International a contract to provide a marine installation campaign for the Shenzi subsea multiphase pumping project in the deepwater US Gulf. The Shenzi development comprises approximately 15 subsea wells located across Green Canyon blocks 609, 610, 653, and 654, tied back to a tension-leg platform (TLP) hub in a water depth of 4,400 ft.
The scope of the contract includes project management; detailed design and fabrication for a pump station suction pile; umbilical installation and flexible jumpers and flying leads installation; transport of all materials and equipment; and precommissioning services and other necessary testing and surveys.
The $150-million subsea pumping project will allow for increased recovery from existing wells, with the operator anticipating an additional 4,000 B/D.
"McDermott's North Ocean 102 vessel is uniquely qualified to transport and install the materials and equipment for the Shenzi project scope—as well as perform precommissioning testing and other necessary surveys to safely deliver for the customer," said Mark Coscio, senior vice president for McDermott's North, Central and South America region.
Engineering, procurement, and project management services will be led by McDermott’s Houston engineering group. The project will begin immediately and is expected to be completed in the summer of 2022.
BHP also continues to work on development plans for its wholly owned Wildling discovery, which lies to the northwest on Green Canyon blocks 520 and 564. The initial phase will comprise two subsea wells tied back to the Shenzi TLP, and more wells may follow depending on performance. First oil is expected over 2024/2025, with production of 15,000 B/D targeted.
BHP operates Shenzi with a 72% stake. Partner Repsol holds the remaining 28% interest.
McDermott is currently providing front-end engineering design (FEED) of a semisubmersible floating production unit (FPU) for the Trion project in the Gulf of Mexico, another BHP project, in partnership with Pemex. McDermott was previously awarded and completed services under an initial pre-FEED contract for the Trion FPU.
