McDermott, COOEC Win EPCI 'Mega-Project'

Wednesday, July 10, 2019

McDermott International said it has been awarded a contract worth more than $3 billion for Package 1 of Saudi Aramco's Marjan Increment Development Mega-Project to provide engineering, procurement, construction and installation (EPCI) of the Gas-Oil Separation Plant (GOSP), in a consortium with China Offshore Oil Engineering Company (COOEC).

The deal, which was among several awarded by Saudi Aramco for its its Marjan and Berri offshore fields on Tuesday for a total value of $18 billion, represents the single largest EPCI offshore contract awarded by the Saudi Arabian national petroleum and natural gas company.

The consortium will work in an integrated execution model utilizing McDermott's global assets and facilities as well as COOEC's fabrication capability and marine vessels, McDermott said.

The Marjan field lies in the Arabian Gulf, off Saudi Arabia's East Coast. The Package 1 GOSP separation platform, the operational center of the Marjan increment development mega-project, is located offshore in the eastern flank of the Arabian Gulf.

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.

The Package 1 contract includes the fabrication of over 165,000 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.

McDermott said it also won a $1.5 billion award for Package 4 to provide EPCI of offshore gas facilities and pipelines, representing the second largest EPCI offshore contract awarded by Saudi Aramco in the Marjan Increment Development Project.

"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. "Our locally focused and globally-integrated approach we refer to as the One McDermott Way, is integral to our ability to provide effective, innovative solutions for our clients."

The Package 4 contract includes the fabrication of three tie-in platforms and seven wellhead platforms with a total weight of more than 61,400 tons. The scope also includes the 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.

Categories: Contracts Middle East Engineering Industry News Construction Installation

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