The agreement with FMC, a global oil and gas hardware and engineering subsea systems supplier, is for five years with an option to extend. It covers the supply and support of subsea systems including wellheads, subsea trees, subsea controls, manifolds and flow-line tie-in and intervention systems.

Under the agreement, significant savings are expected through Woodside and FMC standardising subsea technology for use across a range of offshore projects that Woodside has in development.

Woodside’s Director of Australian Oil, Keith Spence, said agreements of this type were common in Europe and the US and had led to shorter project lead times, improved subsea performance and installation times, greater consistency and flexibility among subsea personnel, and lower tendering costs.

Mr Spence said the FMC agreement was expected to be used on the Enfield project, the first of several major offshore developments that Woodside has under consideration.

“The agreement gives Woodside access to FMC technology, which is some of the most advanced in the world, and is expected to reduce subsea project lead-times by more than 10%,” Mr Spence said.

“On projects where the subsea component can be up to a quarter of total project costs, we expect substantial savings over the next 10 years as Woodside develops projects such as Enfield in Western Australia.”

Mr Spence said the contracting approach was in line with Woodside’s intention to accelerate project development and enhance profitability.

The agreement would reduce life cycle costs and allow the two companies to build a long-term, close working relationship, a benefit which had potential for future projects involving joint venture partners.

FMC will manage this agreement through bases in Norway, Singapore and Perth and intends to use Australian suppliers and contractors, particularly those in Western Australia, for work such as design, fabrication, manifolds and other equipment and service support.