McDermott confirms pair of new deals for work on Qatar’s largest oil field

U.S. offshore engineering and construction player McDermott has corroborated the award of two engineering, procurement, construction, installation, and commissioning (EPCIC) contracts for the development of the next phase of the largest oil field off the coast of Qatar.

McDermott’s confirmation of two new assignments with North Oil Company (NOC), a joint venture between QatarEnergy (70%) and TotalEnergies (30%), for the delivery of the EPCIC scope for packages 11 and 13 of the Ruya development project – part of the expansion of the Al-Shaheen field – comes only a day after Qatar’s state-owned energy giant announced the award of four multi-billion-dollar EPCI contract packages to multiple players, including the U.S. firm.

At the time, QatarEnergy revealed that the EPC package for nine wellhead platforms, valued at about $2.1 billion, was awarded to a consortium of McDermott Middle East and Qingdao McDermott Wuchuan (QMW) Offshore Engineering while the EPC package for a central processing platform, worth around $1.9 billion, was given to a consortium of McDermott Middle East and Hyundai Heavy Industries.

According to McDermott, the scope of work for Package 11, which the firm claims to be a mega contract awarded to a consortium of McDermott Middle East and Qingdao McDermott Wuchuan, encompasses the installation of nine satellite wellhead platforms and jackets in two offshore campaigns. The U.S. player defines a mega contract as being over $1.5 billion.

Mike Sutherland, McDermott’s Senior Vice President, Offshore Middle East, commented: “These awards build on our successful execution of the front-end engineering design (FEED) project—one of the largest FEEDs in McDermott’s 100-year history—completed in just over 12 months. We will continue to earn the confidence of QatarEnergy and TotalEnergies by delivering strategically significant energy infrastructure projects in the Middle East.”

On the other hand, Package 13, deemed by McDermott as a substantial contract, which was awarded to a consortium consisting of the U.S. firm and Hyundai Heavy Industry (HHI), is for EPCIC of one 25,000 metric ton central processing platform, flare platform, and bridges. From the company’s perspective, a substantial contract is valued between $500 and $750 million.

Neil Gunnion, Qatar Country Manager and Vice President of Operations, stated: “We have been on this journey with NOC since our Doha operating center started the pre-FEED in 2021. This team of experts will now lead the execution of EPCIC work, leveraging their robust experience and in-depth knowledge of Qatar’s offshore sector for the successful expansion of the Al-Shaheen field.”

Located 80 kilometers offshore Qatar, the Al-Shaheen field is said to be among the world’s largest fields in terms of oil in place. The commercial production began in 1994. During five years, the next phase of the project will develop more than 550 million barrels of oil, covering the drilling of more than 200 wells and the installation of a new centralized process complex, nine remote wellhead platforms, and associated pipelines. The first oil is anticipated in 2027.

McDermott has kicked off 2024 with a bang by securing new projects, including a deal with Malaysia Marine and Heavy Engineering (MMHE) for the first carbon capture and storage (CCS) project located offshore Malaysia.

As part of a consortium with Baker Hughes, the company recently wrapped up the installation of subsea infrastructure for Inpex’s gas field offshore Australia.

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