Sakarya Gas Field contract awarded to consortium
HOUSTON / ISTANBUL
International oilfield services company Schlumberger announced on Oct. 15 a significant contract award by the Turkish Petroleum Corporation (TPAO or TP) for the engineering, procurement, construction and installation (EPCI) of end-to-end production solutions for the Sakarya Gas Field, Turkey’s largest gas reserve.
The contract is awarded to Schlumberger and Subsea 7, an engineering company registered in Luxembourg and headquartered in London, as part of a consortium.
The integrated project scope will cover subsurface solutions to onshore production, including well completions, subsea production systems (SPS), subsea umbilicals, risers, flowlines (SURF), and an early production facility (EPF), Schlumberger said in a statement.
Schlumberger will deliver the well completions scope and the design, construction and commissioning of the early production facility. The SPS and SURF scope will be delivered by OneSubsea, the subsea technologies, production and processing systems division of Schlumberger, and Subsea 7.
“This end-to-end production solutions contract award demonstrates the confidence placed in our ability to accelerate discovery to first gas and enhance value creation for TP in the Sakarya offshore gas field,” said Donald Ross, the head of production systems at Schlumberger.
“Through open collaboration and by leveraging innovative production solutions, Schlumberger will drive local content value creation and remains committed to supporting Turkey’s energy sector,” he added.
Subsea 7 also confirmed the award of a major contract worth over $750 million by TPAO.
Project management and engineering have already commenced and will be managed from the Subsea 7 office in Istanbul, it said.
“Subsea 7 looks forward to building a long-term relationship with Turkish Petroleum and to making a significant contribution to the development and growth of the Turkish energy industry,” said John Evans, the chief executive officer of Subsea 7.
The Sakarya Gas Field represents the largest ever gas reserve discovered in Turkey. The subsea development will be located approximately 100 nautical miles into the Black Sea.
The scope of work comprises the EPCI of the subsea pipelines and associated equipment to connect the subsea wells in approximately 2,000 meters of water depth to the EPF.
Turkey’s largest gas find, which reached 405 billion cubic meters (bcm), was discovered by drillship Fatih last year.
In June, Turkey announced a second discovery of 135 bcm, bringing the cumulative gas discovery total to 540 bcm.
Energy and Natural Resources Minister Fatih Dönmez previously said the maximum annual production from the field could range between 15 and 20 bcm, corresponding to around 30 percent of the country’s yearly gas consumption, which reached 48.2 bcm in 2020.
Turkey’s new gas discovery could alleviate its gas import dependence, 48 bcm of which mainly comes from Russia, Azerbaijan and Iran via pipelines along with liquefied natural gas from several countries, including Nigeria, Algeria and the United States.
In recent years, Turkey has paid approximately $12 billion for natural gas imports.
The first production from the Sakarya field is forecast to start by 2023.
