Luxembourg - 22 May 2023 - Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) today
confirmed the award of a major(1) contract by Turkish Petroleum for the second
phase of the Sakarya field development offshore Türkiye in the Black Sea.
The award for this two-phase subsea development was announced in redacted form
on 12 May 2023. The first phase has been recorded in the backlog in the second
quarter of 2023 and the second phase, expected in 2024, remains subject to
sanction by the client.
The contract is awarded to a consortium including Subsea7 and its partner in
Subsea Integration Alliance, OneSubsea(®2), as well as SLB and Saipem. The
integrated project scope of the engineering, procurement, construction, and
installation (EPCI) contract will cover the subsurface solutions including
subsea production systems (SPS), subsea umbilicals and flowlines (SURF).
The scope of work to be executed by Subsea7 comprises the EPCI of approximately
37 kilometres of infield flowlines, 47 kilometres of control umbilicals and
associated subsea equipment in water depths of 2,000 metres. The contract also
includes additional FEED studies and options to further extend the scope of
work.
Project management and engineering will be managed from the Subsea7 office in
Istanbul, Türkiye and offshore activities are expected between Q2 2025 and Q3
2025, with optional scope between Q4 2026 and Q4 2027 subject to final
investment decision by the client.
Franck Louvety, Africa, Middle East & Caspian Vice President said: "Through the
close collaboration of Subsea7, OneSubsea(®) and Turkish Petroleum, first gas
from Sakarya Phase 1 was delivered just 30 months after discovery. Subsea7 looks
forward to extending this relationship for Phase 2 and continuing our
contribution to the development of the energy industry in Türkiye."
(1) Subsea7 defines a major contract as being one where Subsea7's share of
revenue over USD 750 million.
(2) OneSubsea(®) is the subsea technologies, production, and processing
business of SLB
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Subsea7 is a global leader in the delivery of offshore projects and services for
the evolving energy industry. We create sustainable value by being the
industry's partner and employer of choice in delivering the efficient offshore
solutions the world needs.
Subsea7 is listed on the Oslo Børs (SUBC), ISIN LU0075646355, LEI
222100AIF0CBCY80AH62.
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Contact for investment community enquiries:
Katherine Tonks
Investor Relations Director
Tel +44 (0)20 8210 5568
ir@subsea7.com (mailto:ir@subsea7.com)
Contact for media enquiries:
Hariom Cavalcante
Communications Manager
Tel +33 (0)6 85 07 48 01
hariom.cavalcante@subsea7.com (mailto:hariom.cavalcante@subsea7.com)
Forward-Looking Statements: This announcement may contain 'forward-looking
statements' (within the meaning of the safe harbour provisions of the U.S.
Private Securities Litigation Reform Act of 1995). These statements relate to
our current expectations, beliefs, intentions, assumptions or strategies
regarding the future and are subject to known and unknown risks that could cause
actual results, performance or events to differ materially from those expressed
or implied in these statements. Forward-looking statements may be identified by
the use of words such as 'anticipate', 'believe', 'estimate', 'expect',
'future', 'goal', 'intend', 'likely' 'may', 'plan', 'project', 'seek', 'should',
'strategy' 'will', and similar expressions. The principal risks which could
affect future operations of the Group are described in the 'Risk Management'
section of the Group's Annual Report and Consolidated Financial Statements.
Factors that may cause actual and future results and trends to differ materially
from our forward-looking statements include (but are not limited to): (i) our
ability to deliver fixed price projects in accordance with client expectations
and within the parameters of our bids, and to avoid cost overruns