Subsea 7 S.A. (Oslo Børs: SUBC; the Company) has been awarded a contract by Royal Dutch Shell (Shell) for installation work in the Gulf of Mexico. The contract value is in the range of $50 million to $100 million.

The contract scope of work involves the installation of 27 miles of 8” Flowlines and Steel Catenary Risers (SCRs), with associated structures such as Pipeline End Terminations (PLETs) and inline structures (ILS). The main offshore installation phase is expected to take place in the second and third quarters of 2016.

Craig Broussard, Vice President - Gulf of Mexico, said: “Subsea 7 is proud to continue to work with Shell, building upon our strong track record in the deepwater subsea construction market in the Gulf of Mexico.”

Following a ramp-up period, Tubular Bells is expected to deliver gross production of approximately 50,000 barrels of oil equivalent per day (25,000 barrels of oil equivalent per day net to Hess) from three producing wells by year end.

“This important achievement demonstrates our ability to successfully execute highly complex, deepwater development projects,” said John Hess, chief executive officer. “We are proud to deliver Tubular Bells safely and on budget. One year after Hess took over as operator, the project was sanctioned and fast tracked with an execution schedule to first oil in just three years.”

The Tubular Bells Field was discovered in 2003 and the development was sanctioned in October 2011. It lies in approximately 4,300 feet of water, 135 miles southeast of New Orleans.

Tubular Bells utilizes the first classic spar built in the United States. The design and construction were done entirely in the U.S. creating an estimated 7,000 direct and indirect jobs in Texas and Louisiana.