Subsea Engineering Associates has secured the awarded detailed design, procurement and construction management contract for the Baltic Gas Project in Poland.
SEA previously aided in the front-end engineering design work in a contract valued at $1.3 million.
The scope of work consists of over 110km of subsea pipelines, a directional shore crossing, pre-lay and post-lay trenching, risers and platform tie-ins, as well as system engineering including reservoir to gas plant flow assurance.
The work will be executed from SEA's Perth office with assistance of Polish sub-contractors for Warren Buffet's CalEnergy Resources (51% and operator) and LOTOS Petrobaltic (49%).
SEA boss Adam Czajko said his company was happy to play a role in a significant development in the Polish energy sector and the Baltic Sea.
"Our focus this year is to lock-in the value generated during FEED by completing the design and going out to the market with tender packages for the main scopes," Czajko said.
"We expect significant interest from contractors and suppliers given the current state of the market. With tendered costs, the project should be in a strong position for final investment decision during second half of 2016."
The project is designed to be a low cost subsea developments in what is fast becoming a commercially prohibitive environment.
The decision to proceed to FEED was a pivotal milestone on the path to commercialisation of the Baltic Gas Project where discovered gas assets have remained undeveloped for many years, and the task now is to move to FID.
SEA recently opened an office in Gdansk, Poland to support the project as well as other opportunities in the Baltic area within both the oil, gas and renewable energy sectors, primarily wind farms.
The Gdansk office will play a strategic role in continuing to offer SEA's clients cost effective offshore services including engineering, fabrication and project management.
CalEnergy's Baltic project will recover gas and condensate from B4 and B6 fields using two wellhead platform structures of proven technology with the raw gas being transported through subsea pipelines to the mainland in Wladyslawowo for processing and delivery of sales gas, LPG and condensate products to regional customers.
While the project is not large, with gas in place estimated at less than 150 billion cubic feet of gas, it will provide Poland with better energy security, yet another source of gas and reduce its dependence on Russia.
