MEXICO: Seatrium, an offshore engineering firm headquartered in Singapore, has secured a significant contract from BP Exploration & Production Inc. for the new build floating production unit (FPU) on BP’s ultra-deepwater Kaskida project in the Gulf of Mexico.

The Kaskida development is a major greenfield project located approximately 402.3 kilometres offshore in the US Gulf of Mexico. BP has awarded Seatrium a Letter of Intent (LOI) to commence early engineering works for the semi-submersible FPU, which will feature a single topside module supported by a four-column hull.

The Kaskida FPU will be designed to produce up to 100,000 barrels of oil per day, with a minimum operating life of 20 years without dry-docking.

The topside module will house oil and gas processing facilities, utilities, living quarters, and a flare system.

The hull will be engineered for operations in water depths of up to 2,438 metres.

While the exact contract value was not disclosed, industry analysts estimate the engineering, procurement, and construction (EPC) contract for the Kaskida FPU could exceed $1 billion, making it one of the largest offshore contracts awarded in recent years for a Gulf of Mexico project.

With the LOI awarded, Seatrium will now begin front-end engineering and design (FEED) work on the FPU. The full EPC contract is expected to be finalized and awarded by late 2024 or early 2025.

Fabrication of the FPU is projected to take around three to four years after the EPC contract award, with first oil from the Kaskida project targeted for 2028-2029.

The award further solidifies Seatrium’s position as a leading provider of offshore floating production solutions, especially in the ultra-deepwater Gulf of Mexico region.