Offshore installation and construction firm Subsea 7 has won a contract to deliver subsea equipment and flowlines for Chevron's Anchor development in the U.S. Gulf of Mexico

The US supermajor Chevron sanctioned the $5.7 billion deepwater Anchor project in December 2019. The deepwater project is the first ultra-high pressure development to reach a final investment decision (FID),  and is targeting first oil production in 2024.

Under the contract announced Tuesday, Subsea 7’s scope of work includes project management, engineering, procurement, construction and installation of the SURF components including the production flowlines, risers, umbilicals, flying leads, jumpers, and associated appurtenances.

Project management and engineering will start immediately at Subsea 7’s offices in Houston, Texas. Fabrication of the flowlines and risers will take place at Subsea 7’s spool-base in Ingleside, Texas, with offshore operations anticipated to occur in 2022 and 2023.

Chevron in December awarded Schlumberger's OneSubsea a contract for delivery on integrated subsea production and multiphase boosting system for the Anchor Field.

Commenting on the contract on Tuesday, Craig Broussard, Vice President for Subsea 7 US, said, “We are honored to be selected by Chevron for the SURF installation scope on the Anchor project. We look forward to building on the collaborative relationship with Chevron to deliver a best-in-class project.  The combination of the SURF scope for Subsea 7 and the ongoing subsea equipment delivery by OneSubsea, will allow the Subsea Integration Alliance to work in partnership with Chevron to unlock the value of an integrated approach to project optimization.”

Subsea 7 did not share the financial details of the SURF contract.

The Anchor field, located on Green Canyon block 807, about 225 kilometers off the coast of Louisiana, sits in approximately 1,524 meters water depth and is believed to hold more than 440 million barrels of potentially recoverable oil-equivalent resources.

It will be developed using the semi-submersible floating production unit (FPU) which will have a production capacity of 75,000 b/d of oil and 28 MMcf/d of gas, with the potential for future expansion.