McDermott wins $4.5 billion EPCI contracts from Saudi Aramco
12 July 2019
American contracting giant Mcdermott has secured two engineering, procurement, construction and installation (EPCI) contracts in Saudi Aramco's Marjan Increment Development Mega-Project worth a combined $4.5 billion.
These include construction of a gas-oil separation platform, compression and accommodation facilities, in a consortium with China Offshore Oil Engineering Company (COOEC), worth $3.0 billion, and another EPCI contract for construction of offshore gas facilities and pipelines for the project worth $1.5 billion.
McDermott will lead the consortium with COOEC in an integrated execution model utilising McDermott's extensive global assets and facilities. McDermott said the project will leverage McDermott's extensive project management, engineering, global procurement, fabrication facilities and marine knowledge of the Marjan field and exploit COOEC's fabrication capability and marine vessels.
The Package 1 GOSP separation platform, located offshore in the eastern flank of the Arabian Gulf, is the operational center of the Marjan increment development mega-project and the award represents the single largest EPCI offshore contract awarded by Aramco.
The Marjan Increment Project will increase production from 500,000 to 800,000 barrels of oil per day, with Package 1 GOSP facilities at the core of the development.
"This award signifies Aramco's confidence in McDermott's project management expertise and ability to meet the interface, logistics and coordination challenges that an EPCI project of this vast scale represents," said Linh Austin, Senior Vice President, Middle East and North Africa. "The award is validation of the One McDermott Way, our locally focused and globally-integrated approach to deliver certainty to the most complex projects."
The contract includes the fabrication of over 150,000 metric tons consisting of six major topside platforms and jackets, 12 bridges and six bridge support platforms and jackets, as well as over 70 kilometers of 36-inch oil export trunk lines and more than 90 kilometers of 230kV composite subsea cables.
The project management and engineering teams will be centrally located in McDermott's Asia-Pacific Headquarters in Kuala Lumpur, Malaysia, in close proximity to our Batam Island fabrication facility in Indonesia and the COOEC facility in China. The engineering phase is scheduled to begin in the third quarter of 2019 and fabrication is scheduled to begin in the first quarter of 2020, with overall completion planned for the fourth quarter of 2022. The contract award will be reflected in McDermott's second quarter 2019 backlog, says a release.
Marjan Package 4 represents the second largest EPCI offshore contract awarded by Saudi Aramco in the Marjan Increment Development Project.
The Marjan field lies in the Arabian Gulf, off Saudi Arabia's East Coast.
"The award of Marjan Package 4, in addition to Marjan Package 1, is further evidence of Aramco's confidence in McDermott's ability to deliver on a project of this scale," said Linh Austin, Senior Vice President, Middle East and North Africa.
The contract includes fabrication of three tie-in platforms and seven wellhead platforms with a total weight of more than 55,700 metric tons. The scope also includes installation of subsea trunk lines and in-field pipelines in excess of 540 kilometers, and the laying of more than 90 kilometers of subsea cables.
Project management will be based out of Dubai, United Arab Emirates, with engineering support from McDermott offices in Al Khobar, Saudi Arabia and Chennai, India. Fabrication will take place at McDermott's Batam, Jebel Ali and Dammam yards. The engineering phase is scheduled to begin in the third quarter of 2019 and fabrication is scheduled to begin in the first quarter of 2020, with overall completion planned for the fourth quarter of 2022. The contract award will be reflected in McDermott's second quarter 2019 backlog.
McDermott also won a “sizeable” contract worth between $1 million and $50 million awarded by Qatar Petroleum to carry out front-end engineering and design work for offshore wellhead platforms, pipelines and cables associated with the North Field Expansion (NFE) project.
The scope includes the design of four offshore trunk lines with intra-field pipelines, eight wellhead platforms and power and fiber optic (PFO) subsea cable rings. The FEED contract will be executed from McDermott's Doha offices, with drafting to be executed in Chennai.
Work on the project will begin immediately, and the contract award will be reflected in McDermott's second quarter 2019 backlog, the company said.