Forsys Debut Deal on Lancaster
Thursday 27 October 2016
Technip has confirmed the first award for its Forsys Subsea joint venture with FMC Technologies with a contract to deliver subsea hardware on the Lancaster fast-track field development off the UK.
The debut engineering, procurement, construction and installation contract, disclosed by Technip in its third-quarter report, marks the first follow-on business for the alliance after performing 17 integrated early stage studies.
The deal, for which a value was not disclosed, covers provision of subsea components for Hurricane Energy’s planned early production system at Lancaster located West of Shetland, as well as any subsequent development in the Greater Lancaster area.
Both contractors have been carrying out front-end engineering and design work on the subsea project, with Hurricane eyeing a final investment decision around mid-2017.
Technip would be the subsea umbilicals, risers and flowlines provider, with FMC Technologies delivering the subsea production system.
FMC and Technip, who are in the throes of a $13 billion merger, aim to provide an integrated subsea solution through Forsys to cut field development costs amid low oil prices.
Hurricane, which holds a 100% stake in Lancaster, has previously assumed a base-case two-well development using a floating production, storage and offloading vessel that would target 53 million barrels at a life-of-field operating cost of $35 per barrel.
The UK-based operator is looking to bring the field on stream in 2019, having recorded strong flows from a recently drilled sidetrack at the discovery, and plans further drilling to boost resources.