TotalEnergies Awards McDermott Contract for Begonia
The Angolan project is expected to add 30,000 B/D of oil production by year-end 2024.
French major TotalEnergies has tapped McDermott International for engineering, procurement, supply, construction, installation (EPSCI), precommissioning, and assistance to commissioning and startup on its Begonia Project in Angola Block 17/06. The Begonia field is in water depths between 400 and 750 m and will produce hydrocarbons via a subsea-to-subsea tieback to an existing floating production, storage, and offloading (FPSO) unit, Pazflor.
McDermott will provide all EPSCI services for subsea umbilicals and water-injection and production flowlines. There are three production wells in total which are gathered through a multiphase production flowline, approximately 12 miles (20 km) in length. The two water-injection wells are connected back to an existing riser.
McDermott will utilize its North Ocean 102 vessel to install the umbilicals, and the Amazon will install the rigid pipelines using its J-lay pipeline system.
"This award leverages our extensive subsea and deepwater expertise and is testament to our customer's confidence in our newly converted, state-of-the-art Amazon vessel," said Mahesh Swaminathan, senior vice president, subsea and deepwater for McDermott. "The Begonia Project represents our first subsea project in Angola and supports our strategic focus to grow our footprint in Africa."
Project management and engineering will be executed from McDermott's teams in London and Kuala Lumpur,. The fabrication will be executed locally in Angola.
McDermott referred to the contract as significant, valued at between $250 and $500 million.
TotalEnergies took its final investment decision (FID) for Begonia, the first development of block 17/06, this past July in agreement with concession holder Agência Nacional de Petróleo, Gás e Biocombustíveis (ANPG) and its partners on Block 17/06.
The Begonia development comprises five wells tied back to the Pazflor FPSO, already in operation on Block 17. After commissioning, expected in late 2024, it will add 30,000 B/D to the FPSO's production.
Begonia is the second TotalEnergies-operated project in Angola to use a standardized subsea production system after CLOV Phase 3, saving up to 20% on costs and shortening lead times for equipment delivery, according to the operator.
The project represents an investment of $850 million and 1.3 million man-hours of work, 70% of which will be carried out in Angola.
TotalEnergies operates Block 17/06 with a 30% interest, alongside affiliates of Sonangol P&P (30%), SSI (27.5%), ACREP/Somoil (5%), Falcon Oil (5%), and PTTEP (2.5%).