Subsea 7 has been awarded an additional contract by the Turkish Petroleum Offshore Technology Center (TP-OTC) for the ongoing development of Phase 2 of the Sakarya gas field in the Black Sea, offshore Türkiye.
Although the exact financial terms of the contract were not disclosed, Subsea7 indicated it to be in the range of $300m and $500m.
The contract, which is an expansion of an existing one with the Subsea Integration Alliance, will include the installation of Türkiye`s first floating production unit (FPU) as part of the second development phase.
Previously, in May 2023, a consortium comprising SLB, Subsea Integration Alliance, and Saipem was awarded the contract for engineering, procurement, construction, and installation (EPCI) for the second phase. The Subsea Integration Alliance represents a global partnership between OneSubsea and Subsea7.
The latest contract enhancement will see Subsea7 handling the installation and integration of risers, umbilicals, hook-ups, and mooring systems with the FPU. Project management and engineering activities will be conducted from Subsea7’s office in Istanbul, Türkiye.
The contract will be recorded in Subsea7’s backlog during Q2 2024.
Subsea Integration Alliance CEO Olivier Blaringhem said: “We are proud to receive this contract award extension by TP-OTC to install the country’s first floating production unit.
“We look forward to our continued collaboration with TP-OTC and our consortium partners to unlock the full potential of the Sakarya gas field and advance Türkiye’s energy security goals.”
Considered as the first deepwater gas field discovery and the largest natural gas reserve in Turkish waters, the Sakarya gas field development project was brought on stream by Türkiye Petrolleri Anonim Ortaklığı (TPAO) in April 2023.
The gas field is located within Block C26 in the western Black Sea, 165km off the Filyos coast in Zonguldak province. It is located within the Turkey exclusive economic zone, and in a depth of around 2,200m.
The consortium of SLB and Subsea7 also played a role in the Phase 1 EPCI project as well by bringing 10 wells into production. Each of the wells contribute 10 million standard cubic meters per day (MSm3/d).
Phase 2 of the project involves the development of an additional 26 wells, aimed at increasing production capacity by an extra 30MSm3/d. Upon the completion of Phase 2, projected for 2028, it is anticipated that the Sakarya field will supply 30% of Turkey`s natural gas requirements.
