Chevron lets contract for Escravos project off Nigeria

Uchenna Izundu
OGJ International Editor

LONDON, Oct. 23 -- Chevron Nigeria Ltd. let a $500 million contract to Acergy SA to carry out pipeline and subsea work for the Escravos gas project off Nigeria.

The engineering, procurement, fabrication, transportation, installation, tie-in, and commissioning contract covers over 130 km of pipelines in 40 m of water.

Acergy also will fabricate and install 15 risers and 3 subsea tie-ins and install more than 40 crossings. Engineering will start immediately, with offshore installation due to start in fourth-quarter 2010.

A Chevron spokesman told OGJ the contract focuses on the first and second stages the Escravos project. With start-up expected in 2013, the project is a continuation of the company's Western Delta gas development program and will utilize gas that would otherwise be flared.

The project includes installation of a gas-gathering and compression platform near the existing Meren 1 complex, installation of 121 km of subsea pipelines, and modifications to nine existing production platforms. Chevron has a 40% stake in the $2 billion initiative.

Contact Uchenna Izundu at uchennai@pennwell.com.