Ithaca Energy and Technip UK Signs Engineering, Procurement, Installation and Construction (EPIC) Contract

Ithaca Energy Inc. announces that it has signed an Engineering, Procurement, Installation and Construction (EPIC) contract with Technip UK Limited covering the major subsea works that are to be conducted on the Greater Stella Area.

 The EPIC contract covers:

• Detailed design and installation of the two 10-inch oil and gas pipelines that will be used to export processed hydrocarbons from the "FPF-1" floating production unit.
• Installation of manifolds, subsea structures, flexible pipelines and spoolpieces(1) connecting the Stella main and northern drill centers to the FPF-1.
• Design, manufacture and installation of the umbilicals(2) connecting the drill centers to the FPF-1 and the flexible risers connecting the Stella main manifold to the FPF-1.
• Installation of the mooring system for the FPF-1 and the design and installation of a five-slot mid water arch.

 Installation of the subsea infrastructure is scheduled to take place in summer 2013.

 The gross value of the EPIC contract is approximately US$230 million (US$126 million net to Ithaca). The contract value is in line with the budgeted cost.

 The overall Stella and Harrier development work program is progressing as planned, with all the major contracts now in place following the award of the contract to Technip.

•  Front end engineering and design for the FPF-1 upgrade and modification works has been completed by Petrofac and detailed engineering and procurement activities are underway. The FPF-1 is currently located at the Able shipyard on Teeside where work is ongoing to remove obsolete processing equipment on the vessel prior to the commencement of the required modification works. Selection of the yard in which the modification works will be performed is anticipated to be made by Petrofac in Q3-2012.
•  Development drilling is anticipated to commence in late 2012 using the Ensco 100 heavy duty jack-up rig, a contract for which was executed in November 2011.

 The Partners in the Stella and Harrier fields are Ithaca Energy (UK) Ltd (operator), Ithaca Minerals (North Sea) Ltd, Dyas UK Ltd and ultimately, under an Earn-In type arrangement, Petrofac GSA Limited.

Source: Ithaca Energy