Subsea7's latest Black Sea contract worth up to $1.25 billion

Subsea7 has been awarded another contract from Turkish Petroleum for the third phase of the big Sakarya gas project in the Black Sea, the offshore player said on Wednesday.

Awarded by Turkish Petroleum Offshore Technology Center (TP-OTC), the engineering, procurement, construction and installation (EPCI) contract calls for Subsea7 to build out the development’s subsea umbilical, riser and flowline (SURF) system, the company said.

Subsea7 did not reveal the contract’s value but said it is between $750 million and $1.25 billion.

Project management and engineering will begin “immediately” at Subsea7’s Istanbul office, the company said.

The award was expected because Subsea7 has been the incumbent subsea contractor on Sakarya's first two development phases.

Last November, chief executive John Evans said: “Sakarya phase three is a very, very, very large subsea development… which effectively doubles the size of phases one and two together.”

For phase 3, Turkish Petroleum aims to deploy a new floating production unit that will handle gas from a 32-well subsea system design to boost output to 40 million cubic metres per day.

Chinese contractor Wison New Energies in May emerged as the front runner for an engineering, procurement and construction contract for the FPU, sources previously told Upstream.

The first phase of Sakarya — a 10-well subsea tie-back to shore — began production in April 2023.

A second phase will double output to 20 MMcmd by 2028 through the modified BW Opportunity floating production, storage and offloading vessel, which is being converted into an FPU.