TotalEnergies has awarded a contract to McDermott International for work on the Begonia project, offshore Angola.
The US contractor will carry out engineering, procurement, supply, construction, installation, pre-commissioning and assistance to commissioning and start-up (EPSCI) on Begonia, it said.
The field is in water depths of 400 to 750 metres, in Block 17/06. Sonangol expects the field to begin producing in late 2024, adding production of around 30,000 barrels per day.
McDermott described it as significant contract. It defines this as being worth $250-500 million. Total has reported the project’s price tag at $850mn.
The project will transport hydrocarbons, via a subsea tieback to the existing Pazflor FPSO in the adjacent Block 17. McDermott will provide services for subsea umbilicals, water injection and production flowlines.
The Begonia work will cover three production wells, via a multiphase production flowline around 20 km in length. It will also have two water injection wells, connected to an existing riser.
McDermott will use its North Ocean 102 vessel to install the umbilicals and the Amazon to install the rigid pipelines.
“This award leverages our extensive subsea and deepwater expertise and is testament to our customer’s confidence in our newly converted, state-of-the-art Amazon vessel,” said Mahesh Swaminathan, Senior Vice President, Subsea and Deepwater for McDermott. “The Begonia Project represents our first subsea project in Angola and supports our strategic focus to grow our footprint in Africa.”
McDermott pledged to maximise its use of local suppliers and subcontractors. It will also provide training to the local workforce.
The company’s teams in London and Kuala Lumpur will provide project management and engineering work. It will fabricate equipment locally in Angola.
Total, announcing the final investment decision (FID) in July, said it would achieve cost savings on Begonia through the use of a standardised subsea production system. Such a step reduces the cost by around 20%, it said.