Highlights of the Year 2017

January 2, 2018

Subsea World News has singled out the most interesting article from each month of 2017 that highlighted the subsea industry.

In the Q1 2017, we saw the largest merger in the industry between Technip and FMC Technologies. Emas Chiyoda Subsea went bust and ABB sold its subsea cable business to NKT.

January: TechnipFMC Marks Its Official Start

TechnipFMC has started operating as a unified, combined company following completion of the merger of FMC Technologies and Technip.

TechnipFMC today unveiled its new brand identity and logo, which represent the joining together and integration of two established entities.

February: Emas Chiyoda Subsea in Bankruptcy Filing

Emas Chiyoda Subsea (ECS) has filed voluntary petitions for reorganisation under chapter 11 of the U.S. Bankruptcy Code to facilitate the company’s financial and operational restructuring.

In connection with the filing, ECS has received a commitment on an up to US$90 million financing facility from Chiyoda Corporation and Subsea 7. Subject to bankruptcy court approval, the financing will be made available to support the company’s continuing business operations, minimise disruption to its projects and make necessary operational changes.

March: ABB Wraps Up Sale of Cable Business to NKT

ABB has completed the divestment of its high-voltage cables and cable accessories businesses to NKT Cables.

The divestment was announced in September 2016. As part of the strategic partnership, ABB and NKT Cables will work together on future project opportunities and R&D.

The second quarter of 2017 was highlighted by Allseas as it announced the Nord Stream 2 pipelay contract and started pipe-laying campaign of the TurkStream gas pipeline in the Black Sea. ExxonMobil made a final investment decision to proceed with the first phase of development for the Liza field, offshore Guyana, which led to several awards for subsea companies.

April: Allseas Seals Nord Stream 2 Pipelay Deal

Nord Stream 2 AG said it has signed a contract for offshore pipelay of the Nord Stream 2 natural gas pipeline through the Baltic Sea with Allseas on 6 April 2017.

The contract follows the letter of intent agreed between both parties last December. Other tenders including the near-shore pipelay tenders in Russia and Germany are ongoing.

May: TurkStream Pipelaying Kicks Off

Gazprom informed that the construction of the TurkStream gas pipeline has started in the Black Sea near the Russian coast.

Pipelaying is carried out by the Audacia vessel owned by Allseas, the construction contractor for both strings of the gas pipeline’s offshore section. The vessel will be also used for pipe pulling through microtunnels.

June: ExxonMobil Declares Liza FID

ExxonMobil said today it has made a final investment decision to proceed with the first phase of development for the Liza field, located offshore Guyana.

The company also announced positive results from the Liza-4 well, which encountered more than 60 meters of high-quality, oil-bearing sandstone reservoirs, which will underpin a potential Liza Phase 2 development.

Q3 2017 was marked by the acquisitions of JDR by TFKable from Poland. Subsea 7 has ordered a new reel-lay vessel to replace ‘Seven Navica’ and subsea compression trains at Statoil’s Åsgard field achieved a milestone with more than 25 000 operation hours.

July: TFKable Buys JDR

JDR Cable Systems is to be acquired by the Polish manufacturer of cables and wires TELE-FONIKA Kable (TFKable).

JDR’s subsea systems, used in the global offshore oil, gas and renewable industries should now enhance the range of cable solutions TFKable can provide.

August: Åsgard Subsea Compression Becomes Field-Proven Tech

Both subsea compression trains at Statoil’s Åsgard field have achieved more than 25 000 operation hours with an availability close to 100%.

The world’s first subsea gas compression facility features two MAN Diesel & Turbo HOFIM motor-compressor units.

September: Subsea 7 Orders New Vessel from Royal IHC

Subsea 7 has signed a letter of intent with Royal IHC in the Netherlands for the construction of a new reel-lay vessel and associated pipe lay equipment.

The cost, excluding capitalised interest, is expected to be below USD 300 million with an early 2020 delivery. The firm contract with Royal IHC is expected to be awarded before the end of 2017, subject to certain conditions and final board approval.

Sad news came in the final quarter of 2017 as Subsea UK inaugural chief executive, David Pridden (66), passed away in November following a battle with cancer. On a brighter note, Aker Solutions has been selected to build the largest umbilicals system, for approximately $200 million. Q4 has seen several contract awards for subsea companies, especially in December.

October: Aker Solutions to Produce World’s Largest Umbilicals

Aker Solutions has won an order valued at more than NOK 1.6 billion ($201 million) to deliver the largest umbilicals system ever.

The contract entails delivery of 250 kilometers of steel-tube umbilicals linking a subsea development to an existing offshore platform.

November: Subsea UK Says Final Goodbye to Its Inaugural CEO

Subsea UK inaugural chief executive, David Pridden (66), passed away following a battle with cancer.

David Pridden became the CEO of Subsea UK in 2004, several months after the organisation was formed by Government and the industry.

December: Expro Files for Chapter 11 Bankruptcy

Oilfield services company, Expro, has filed for Chapter 11 bankruptcy as part of the next step in its financial restructuring.

As previously disclosed, the company has reached an agreement with its key lenders and shareholders to eliminate its entire $1.4 billion of funded debt and $80 million in annual interest payments through an equity conversion, which will fully deleverage its balance sheet.