HYDRA SUBSEA has announced the execution of a commercial agreement with Shell Offshore Inc. (Shell) for a standardised deepwater pipeline installation solution for selected short distance subsea tie-ins in the Gulf of Mexico. Shell’s Appomattox gas lift line is the first project proposed, subject to project-specific approvals and requirements. Appomattox, located 80 miles off the coast of Louisiana, is operated by Shell (79%) with INEOS holding a 21% working interest.
HYDRA is currently progressing through the program and preparations for reactivation of the Subsea Legend. The vessel is planned to receive new mission equipment, a 250-ton active heave-compensated subsea crane, a new propulsion system and an upgraded dynamic positioning system.
The HYDRA Standard Solution combines repeatable engineering, standardised project configurations and dedicated regional installation capability. The approach is intended to reduce complexity and improve cost and schedule predictability for projects that fit the model and is specifically designed to support Gulf of America projects.
“Smaller deepwater developments need an execution model aligned with their scale and economics,” said Trevor Davis, CEO, HYDRA SUBSEA. “This agreement gives Shell an additional option for selected projects where a repeatable installation approach can improve predictability. We believe that this same approach can be applied across the Gulf with other operators.”
“We welcome an approach that integrates onshore pipeline preparation with offshore installation,” added Jim Germanese, Vice President Growth Assets, Gulf of Mexico, Shell. “For the right projects, it can provide another option to enable the ‘best in basin’ project delivery we aim to achieve.”
The agreement establishes commercial and technical conditions under which the companies may progress qualifying opportunities. Each project remains subject to separate evaluation, approval and award.
