Subsea 7 Gets $80M Subsea Umbilicals Pact Offshore Australia

Norwegian seabed-to-surface engineering and construction contractor Subsea 7 S.A. (SUBC.OS) announced Monday the award of a $80 million contract from Chevron Australia Pty Ltd (CVX) for the Chevron-operated Gorgon Project, offshore Western Australia.

MAIN FACTS:

-The work involves the transportation and installation of subsea umbilicals and structures from Barrow Island – 56km off the north-west coast of Western Australia, to the Gorgon and Jansz Fields.

-The Gorgon and Jansz umbilicals are 59km and 135km in length respectively.

-These will be transported from Europe to Australia onboard the Seven Seas, and then installed from the vessel.

-A major trenching scope of work, of up to 70km, will also be undertaken from the Rockwater 2, to stabilise and protect the main umbilicals.

-Project management and engineering will commence immediately from Subsea 7’s office in Perth, Australia, with offshore operations scheduled to commence in early 2013.

-The Gorgon Project is one of the world’s largest natural gas projects and the largest single-resource project in Australia’s history. It is operated by Chevron and is a joint venture of the Australian subsidiaries of Chevron (approximately 47%), ExxonMobil (XOM) (25%) and Shell (RDSA) (25%), Osaka Gas (9532.TO) (1.25%), Tokyo Gas (9531.TO) (1%) and Chubu Electric Power (9502.TO) (0.417%).

-Shares closed Friday at NOK141.

-By Dominic Chopping; Dow Jones Newswires