McDermott bags deals in India and Middle East

U.S. engineering and construction company McDermott has received two letters of award for “significant” contracts for offshore projects in India and the Middle East.

The first awarded deal was from Reliance Industries for the KG-D6 subsea field development off the coast of India.

McDermott said on Wednesday that it would provide engineering, procurement, installation and pre-commissioning of subsea flowlines, vent lines, and a pipeline-end manifold for connection with six subsea wells in the R-cluster field.

The work will be done at a water depth of up to 2,100 meters and will also include in-field pipelines, monoethylene glycol line, pipeline-end terminals, jumpers, risers, umbilicals system, and the modification of the control riser platform to interface with the new facilities.

In addition to the R-Cluster of six subsea wells, the deal has an option for five to seven more subsea wells which can be exercised by the client for an optional S-cluster package. The optional scope also consists of two additional subsea structures and flowlines at a water depth between 1,400 meters and 1,800 meters.

Hugh Cuthbertson, McDermott’s VP for Asia, said: “We look forward to working with Reliance on this important and challenging project and building on our recent experience and expertise in deepwater projects across the region. McDermott’s selection underscores the confidence and trust we’ve built with our customers to deliver challenging projects within budget and on schedule, like our recent success on ONGC’s Vashishta project.”

McDermott added that it would use its Engineering Center of Excellence office in Chennai for engineering and project management oversight for the project. The Chennai center would be supported by the company’s office in Kuala Lumpur, Malaysia, as well as vessels from its fleet.

“The significant lump sum contract award is expected to be reflected in McDermott’s fourth quarter 2017 backlog. The contract is scheduled for completion by the second quarter of 2020 for the base scope, and the first quarter of 2021 for the optional scope,” the company said.

The KG-D6 block is located in the Krishna Godavari Basin offshore on the east coast of India. The north-western boundary of the block is about 40-60 kilometers southeast of Kakinada.

It is worth reminding that Reliance awarded an engineering, procurement and construction (EPC) contract to OneSubsea last month for supply of the subsea production system for the R-Cluster.

Middle East

As for the second letter of award, it is from an undisclosed client for engineering, procurement, construction and installation (EPCI) services for an offshore redevelopment project.

McDermott said that the company planned to fabricate and install four wellhead topsides, a manifold platform, and jacket together with associated subsea pipelines and brownfield tie-in works.

According to the company, the combined total weight of the structures is approximately 6,400 tonnes and includes 75 kilometers of onshore and offshore pipeline and umbilicals.

“The award of this redevelopment contract is a strong testament to our ability to combine the right offshore assets and superior execution strategy,” said Linh Austin, McDermott VP for the Middle East and Caspian.

Although McDermott did not disclose the client for the project, it did say that it had a long-standing relationship with this client and that the award builds on the delivery of four jackets in 2016. The four jackets were a part of an earlier phase of the redevelopment project.

McDermott added that fabrication work was expected to begin in the third quarter of 2018 and offshore installation was planned to begin in the second quarter of 2019.

It is worth adding that, according to McDermott, a “significant” contract is between $250 million and $500 million.