Shell, Sapura hire McDermott for offshore Malaysia installation gigs

McDermott has won two “sizable” contracts from Shell and Sapura Exploration and Production for offshore installation and transportation work in Malaysia.

McDermott, which defines a sizable contract as between $1 million and $50 million, said that Sarawak Shell Berhad (SSB) and Sapura Exploration and Production (SEP) selected the company for transportation and installation of offshore structures, pipelines and pre-commissioning work for the Pan Malaysia field development located off the shore of Sarawak, Malaysia.

McDermott’s scope of work for Shell includes the transportation and installation of jackets, topsides, and pipelines for the Gorek gas field. The company’s scope of work for Sapura includes the transportation and installation of jackets, topsides, and pipelines for the Larak and Bakong gas fields. McDermott will also fabricate risers and spools for Shell and Sapura.

“These two contracts give McDermott the opportunity to strengthen our long-standing relationship with Sarawak Shell Berhad and develop a new relationship with Sapura Exploration and Production,” said Ian Prescott, McDermott’s Senior Vice President for Asia Pacific. “They also provide an excellent opportunity for McDermott to execute offshore projects in Malaysia using many of the company’s assets, from our highly-skilled and talented workforce to our marine assets and our global fabrication expertise.”

McDermott plans to use its installation vessel Derrick Barge 30 for these jobs. The project management team will be based in Kuala Lumpur using the maximum Malaysian workforce to meet the local content requirement, McDermott said. Fabrication of the risers and spools is scheduled to be performed at McDermott’s global execution center in Batam, Indonesia. The offshore campaign is expected to begin in Q2 2019.

Malaysia workforce jumps from 90 to 700

The offshore installation company said the awards marked McDermott’s first contracts in Malaysia since relocating the regional headquarters to Kuala Lumpur. McDermott has since increased its local workforce from 90 to nearly 700 employees.

“We have grown significantly in a relatively short space of time. Our Kuala Lumpur office is one of the company’s centers of excellence supporting our global projects. This gives our local employees excellent development and growth opportunities. We are extremely pleased to secure the Pan Malaysia field development work which enables us to support the growth of the Malaysian oil and gas sector and the country,” said Prescott.

McDermott is continuing its hiring process in Malaysia to meet the growing business prospects in the region and its recent combination with CB&I that opens up onshore petrochemical business opportunities in addition to its offshore business portfolio, the company said.