Subsea Construction: The Rise of Repeatable EPC Models

The offshore oil and gas sector could be witnessing a strategic pivot as standardised procurement models begin to challenge the bespoke design frameworks that have dominated subsea engineering for decades.

This transition from customised solutions towards repeatability-driven methodologies suggests a fundamental recalibration of how operators approach project delivery in deepwater environments.

For years, traditional engineering, procurement and construction approaches have operated on the assumption that each offshore field requires individually tailored valves, manifolds and umbilical systems.

However, recent contract awards across major deepwater basins indicate that this "one-off" engineering mindset may be losing ground to configure-to-order frameworks that prioritise efficiency over customisation.

The implications for capital deployment and project economics could prove substantial. By adopting pre-engineered components and leveraging existing blueprints across multiple developments, operators are effectively removing entire phases of project design that have historically extended timelines and inflated costs.

Gulf of Mexico demonstrates efficiency potential

TechnipFMC's 15 January 2024 contract award from bp for the Tiber greenfield development, valued between 600m and 800m, illustrates how repeatability is being implemented in practice.

The integrated engineering, procurement, construction and installation (iEPCI) agreement draws directly on engineering and equipment already under development for bp's Kaskida project.

Jonathan Landes, President, Subsea for TechnipFMC, says: "Building on the Kaskida iEPCI execution model and technologies, we are realising the potential of repeatable and systematic delivery of integrated projects within an existing basin.

"This differentiated approach to technology-enabled greenfield development relies just as much on collaboration as it does technical innovation."

The direct award represents broader industry acceptance of standardisation principles. Through the deployment of pre-engineered components reported to be 50% smaller and lighter than conventional systems, operators are beginning to address the capital intensity challenges that have long influenced project economics in offshore developments.

Lead time reduction transforms project viability

Traditional subsea tree manufacturing has typically required 18 to 24 months for custom-designed equipment.

Standardised models could reduce these lead times significantly because engineering work has been completed in advance, eliminating the need to restart technical development for each new field.

In volatile energy markets, shortening these timelines has become increasingly critical. The speed to first oil often determines a project's ultimate commercial viability, making execution velocity a key differentiator for operators managing Final Investment Decision risk.

For procurement professionals, this shift carries significant implications beyond component costs. The focus is moving from negotiating the lowest price on individual parts to maximising the uptime of multi-million dollar installation vessels.

Vessel integration combined with standardised hardware could offer improved margin protection compared to traditional approaches.

Black Sea deployment extends global reach

Whilst the Gulf of Mexico serves as a primary proving ground for these efficiencies, the trend appears to be gaining momentum across other deepwater hubs where project scale demands extreme operational precision.

Saipem's US$425m expansion for Phase 3 of the Sakarya field in the Black Sea demonstrates how execution speed is becoming central to subsea operations beyond North American basins.

Working at depths of 2,200m demands significant technical capability, yet Mediterranean and Black Sea projects increasingly rely on EPC partners capable of deploying subsea architecture previously proven in other regions.

This "plug-and-play" philosophy aims to ensure that high-pressure, high-temperature environments are managed with hardware that has a documented performance history.

Through the use of vessels such as the Castorone, Saipem is installing integrated systems rather than individual components, reflecting the broader industry movement towards modular approaches.

For global EPC firms, the Tiber and Sakarya projects could offer a template for future operations. The bespoke era was characterised by high margins alongside elevated risks, but the repeatability model appears to be shifting the value proposition from capability-focused to efficiency-driven delivery.

Contractors who dominate the subsea space may increasingly be those transitioning from customised solutions to modular manufacturing approaches that prioritise systematic deployment over field-specific engineering.