TechnipFMC has bagged an integrated engineering, procurement, construction and installation (iEPCI) contract from BP for the $1.3bn Atlantis phase 3 project in the US Gulf of Mexico.
The Atlantis phase 3 project is being taken up to launch production in the eastern area of the Atlantis oil field where there is an estimated 400 million barrels of oil in place.
Under its contract, TechnipFMC will be responsible for manufacturing, supply and installation of subsea equipment. Included in the package are subsea tree systems, manifolds, flowline, umbilicals and subsea tree jumpers, subsea distribution, pipeline end terminations and topside control equipment.
TechnipFMC’s contract also calls for provisional services for tooling and personnel needed for installation of the hardware.
The contract will be subject to BP’s partner BHP taking a final investment decision (FID) on the project. BP, which is the operator of the Atlantis oil field with a stake of 56%, has already reached an FID on the phase 3 expansion.
Value of the contract is in the range of $75-$250m.
TechnipFMC subsea president Arnaud Pieton said: “We are very pleased TechnipFMC has been awarded an iEPCI contract for the Phase 3 development of the BP Atlantis project.
“This award reinforces TechnipFMC’s position as the market and technology leader for subsea equipment and demonstrates the added value of iEPCI – our unique integrated offering. We look forward to extending our successful relationship with BP on the Atlantis project in the Gulf of Mexico.”
The Atlantis phase 3 project is slated to commence production in 2020. At its peak, the offshore oil project will boost production at the Atlantis platform by an estimated 38,000 barrels of oil equivalent a day (boe/d) gross.
Located nearly 241km south of New Orleans, the Atlantis phase 3 development is contained in a water depth of around 2,100m.
It will involve the construction of a new subsea production system from eight new wells that will be tied back to the existing platform of the Atlantis oil field, which was discovered by BP in 1998, and brought on stream in 2007.