Oceaneering Bags Over $100MM Angola, Guyana Contracts

Oceaneering International Inc. has won installation contracts worth more than $100 million collectively for oil development projects in Angola and Guyana.

Oceaneering has been tapped for transportation and installation work on the Girassol life extension project in Angola's offshore Block 17, the Houston, Texas-based engineering company said in a press release.

TotalEnergies SE operates Block 17 with a 38 percent stake through TotalEnergies EP Angola. Equinor ASA has a 22.16 percent interest, ExxonMobil Corp. 19 percent, BP Exploration Angola Ltd. 15.84 percent and Sonangol P&P five percent. Girassol is one of four production hubs on the block alongside CLOV, Dalia and Pazflor.

In 2019, TotalEnergies, then Total, and partners Equinor, ExxonMobil and BP secured a license extension for Block 17 through 2045 under a deal giving Angola's state-owned Sonangol a five percent interest. "Additionally, the consortium will pay some production bonuses to the State of Angola along the life of the license and will spend 20M$ for social programs", TotalEnergies said in a media release December 16, 2019. It said then it was aiming to maintain production on Block 17 at above 400,000 barrels of oil equivalent per day (boepd) through 2024.

On the block the partners began production at the second phase of the CLOV production hub in 2021 with a capacity of up to 40,000 boepd, according to a TotalEnergies news release December 3, 2021.

Earlier that year a short-cycle project connected to the Pazflor’s floating production, storage and offloading unit started up with the same capacity, TotalEnergies announced May 6, 2021.

The partners have now awarded contracts for extending the life of the Girassol production hub. Before Oceaneering's announcement, TechnipFMC PLC said it has been tapped by TotalEnergies EP Angola to provide engineering, procurement and supply services for flowlines and connectors for the extension project. "The flexible pipes will extend the life of the Girassol field by bypassing the rigid pipe bundles installed before production began in 2001", Newcastle-based TechnipFMC said in a press release February 20.

Oceaneering meanwhile will provide "air and saturation diving services, project management, engineering, and procurement activities, in support of the prime contractor’s recovery and replacement of 12 risers", it said.

"Having extensive experience in Angolan offshore developments, Oceaneering will provide Angolan personnel for the project and manage the in-country operations of the consortium", Oceaneering added.

"Oceaneering is expected to provide its services in various phases, to commence in late 2023, lasting into late 2025."

Oceaneering simultaneously announced it has been contracted for the Stabroek block offshore Guyana. The block is operated by ExxonMobil with a 45 percent interest through affiliate Esso Exploration and Production Guyana Ltd. Hess Guyana Exploration Ltd. has 30 percent and CNOOC Petroleum Guyana Ltd. holds 25 percent. The block contains several discoveries, the latest in development being the $12.7-billion Uaru oil field.

"The scope of the project adds to our growing body of work in the South American country in support of a key client", Oceaneering said in the press release.

"It consists of jumper and subsea field development installation and other associated tasks", it added, not specifying the name of the project it has been contracted for. "The scope of supply is already underway and anticipated to last through the remainder of 2023".

Saipem SPA, which has been contracted for the Uaru project, earlier said it had received the green light from ExxonMobil to proceed with final installations. “Saipem informs that it has received from ExxonMobil Guyana and its Stabroek block coventurers the authorization to proceed with the final phase of the UARU oil field development project in Guyana”, the Italian company said in a media release May 4.

“The final phase of the awarded scope of work includes the design, fabrication and installation of subsea structures, risers, flowlines, and umbilicals for a large subsea production facility”, Saipem added.

Uaru, the fifth project on the block on Guyana’s continental shelf, targets around 250,000 barrels in daily production capacity with a target startup 2026, ExxonMobil said in a press release April 26 announcing the final investment decision.

Roderick A Larson, president and chief executive of Oceaneering, said in a statement about the contracts, "Our success with these projects supports our belief in the resurgence of international offshore activity and market expectations over the next several years".

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