ABERDEEN, UK -- Marathon Oil has awarded Subsea 7 a $45 million subsea pipelines fabrication and installation contract.
The supply agreement is part of Marathon's previously disclosed procurement activities related to long lead time items associated with the company's Droshky discovery in the Gulf of Mexico. Marathon anticipates sanctioning the Droshky development in 4Q 2008.
The contract has been awarded for the fabrication and installation of two 8-in. (20-cm flowlines totaling 58 km (36 mi) at the Droshky field development in Green Canyon block 244.
Subsea 7's full scope of work on the project includes project management, engineering, fabrication, and installation services associated with the subsea infrastructure, including the flowlines, pipeline end terminations (PLETs), and risers. The pipeline will be fabricated at the company's new fabrication and spoolbase facility at Port Isabel, Texas.
Engineering work will be carried out from Subsea 7's office in Houston. The offshore phase of the campaign will be carried out in 3Q 2009 and will be delivered by Subsea 7's rigid reeled pipelay vessel, theSeven Oceans.