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Subsea7 confirms Mad Dog 2 win

Surf EPCI contract awarded for second phase of development at Gulf of Mexico field

Offshore service provider Subsea 7 has been awarded an engineering, procurement, construction and installation contract on BP's Mad Dog 2 development in the US Gulf of Mexico.

Subsea 7 revealed Tuesday it had landed the EPCI contract for the subsea umbilicals, risers and flowlines and associated subsea architecture at the project, however it did not disclose the contract value.

The company said it had been working with its subsea integration alliance partner OneSubsea, which it confirmed had been awarded the subsea production systems contract at Mad Dog 2, to identify additional areas of cost improvement to provide greater cost certainty and reduced risk.

It added the award of the Surf and SPS contracts were an endorsement of the alliance with OneSubsea.

"The Mad Dog 2 project is a significant award for Subsea 7. It combines Subsea 7's capability with our subsea integration alliance value offering to reduce risk and provide lower cost solutions for BP,” Subsea7 Gulf of Mexico vice president Craig Broussard said.

“This project serves as a step-change of how we work in the region and in Subsea 7's ability to deliver superior value to the industry."

Tuesday's announcement confirms earlier reports by Upstream that Subsea 7 and OneSubsea were in pole position to land the Surf and SPS contracts on Mad Dog 2.

Project management and engineering on the Surf contract will take place at Subsea7's Houston office, with support from its global project centre in the UK.

Offshore installation activities are set to take place in 2019 and 2020 and Subsea 7 noted it was the first substantial project in the US to use its Swagelining polymer lining technology.

Mad Dog Phase 2 is a southern and south-western extension of the existing Mad Dog field and the project involves a new floating production facility with the capacity to produce up to 140,000 barrels of oil per day from up to 14 production wells. First oil is currently anticipated in late 2021.