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McDermott wins fifth contract for Safaniya

Written by  OE Staff Tuesday, 21 November 2017 10:29

McDermott International has received a fifth contract award under an existing agreement from Saudi Aramco for work on the Safaniya field onshore and offshore Saudi Arabia.  

Under the engineering, procurement, construction and installation (EPCI) contract, which McDermott values between US$750 million and $1.5 billion, the firm will design, fabricate, install and pre-commission nine slipover jackets, 10 production deck modules, an electrical distribution platform and associated cables and pipelines. The combined weight of the structures will exceed 22,000-short ton (20,000-metric ton), with the pipelines totaling over 16mi (26km) and the cables totaling around 13mi (22km).

“This award is a continuation of our long-standing relationship and successful track record with Saudi Aramco,” said Linh Austin, McDermott Vice President, Middle East and Caspian. “We plan to execute much of the project from our Al Khobar office and Dammam fabrication facility, increasing our local content in country, in support of Saudi Arabia’s Vision 2030 and Aramco’s In-Kingdom Total Value Add (IKTVA) program.”

Located approximately 125mi (201km) north of Dhahran in the Arabian Gulf, the Safaniya oil field is currently the largest offshore oil field in the world, by production. This brownfield project is the next phase of a wider campaign to replace aging facilities with electrified platforms to maintain and enhance the field’s production, McDermott said.

Work on the contract is expected to begin immediately and will be reflected in McDermott’s fourth quarter 2017 backlog.

McDermott plans to use its engineering and procurement teams in Dubai, Chennai and Al Khobar, Saudi Arabia. Construction is expected to take place at McDermott’s facilities in Dammam, Saudi Arabia and Jebel Ali, Dubai. Vessels from McDermott’s global fleet are scheduled to perform the installation work.

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