McDermott lands another Ichthys contract

U.S. offshore engineering and construction services player McDermott has won an engineering, procurement and construction (EPC) project after completing FEED services for a booster compression module for the Inpex-operated Ichthys LNG development in Australia.

McDermott won the FEED contract for the booster compression module in November 2020. The module will be added to the Ichthys Explorer central processing platform, which is located off the northwest coast of Western Australia, McDermott informed on Thursday.

This is the third contract McDermott has been awarded for the project after successfully completing FEED services and converting contracts to EPCI.

McDermott’s EPC scope involves a booster compression module that will extend the production from the gas reservoir to the central processing facility. The company is currently undertaking umbilicals, risers, and flowlines as part of an expansion of the existing offshore facilities.

“Ichthys LNG is ranked among the most significant and complex energy developments in the world. We’ve been there since 2012, and we are very familiar with the Ichthys gas field,” said Mahesh Swaminathan, McDermott’s Senior Vice President, Asia Pacific.

The work will be executed from McDermott’s Engineering Centers of Excellence in Perth, Kuala Lumpur and Chennai. Fabrication will be completed at McDermott’s yard in Batam.

Located about 220 kilometres offshore Western Australia and 820 kilometres southwest of Darwin, the Ichthys field covers an area of around 800 square kilometres in water averaging depths of around 250 metres. The field is estimated to contain more than 12 trillion cubic feet of gas and 500 million barrels of condensate.

In related news, Inpex, as the operator of the field, last month settled a dispute with JKC Australia regarding amounts payable under the EPC contract between them.