Oslo-listed engineering company Subsea 7 announced Wednesday the award by US independent Beacon Offshore Energy for a substantial subsea installation services contract for its Shenandoah project in the US Gulf of Mexico.

Subsea 7 quantifies a “substantial” award as being between $150 million and $300 million.

The Shenandoah field lies 160 miles (257 kilometres) offshore Louisiana in Walker Ridge blocks 51, 52 and 53 within the US Gulf's complex Lower Tertiary trend.

The project is the second so-called "20k project" in the US Gulf to produce from reservoirs with pressures up to 20,000 pounds per square inch.