Subsea 7 awarded Peregrino contract

May 8, 2007, 15:45 CEST

Hydro announced today that an agreement has been entered into between Subsea 7 and an affiliate of Hydro and Anadarko for the Engineering, Procurement, Construction and Installation of the pipelines to be used on the Peregrino field offshore Brazil.

The pipelines will be manufactured in Brazil by Subsea 7, and will be laid on the field in late 2009. 

The agreement is subject to the authorities' approval of the Peregrino field development plan.

The Peregrino field is located about 85 km offshore Brazil at a sea depth of around 100 meters. The recoverable reserves are estimated at 300-600 million barrels of heavy oil.

The field will be developed with a floating production, storage and off-loading vessel and two drilling platforms. There will be 30 horizontal production wells and seven water injection wells.

Production start up is planned for 2010.

Licence holders are:
Hydro 50% – operator during the project planning phase.
Anadarko 50% – operator during the project execution and operation phases.