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January 10, 2022updated 24 Jan 2022 10:22am

McDermott wins North Field offshore contract

McDermott is awarded the contract by QatarEnergy for EPCI work on wellhead platforms at the North Field gas reserve.

By MEED   

QatarEnergy has awarded US-based McDermott International a key contract to undertake engineering, procurement, construction and installation (EPCI) works for major offshore structures at its giant North Field gas reserve.

The scope of work on McDermott’s contract covers EPCI of 13 unmanned wellhead platforms at the North Field, QatarEnergy said in a statement on 3 January.

The Qatari energy giant did not mention the value of the contract awarded to McDermott. It could be worth up to $1.5bn.

The EPCI contract straddles two phases of QatarEnergy’s massive, long-term North Field liquefied natural gas (LNG) expansion programme:

  • The second offshore package of the $28.75bn first phase of the North Field LNG expansion megaproject, also known as ‘North Field East’ (NFE) – consisting of eight wellhead platforms.
  • A new offshore package, which is part of QatarEnergy’s $10bn-plus second LNG expansion scheme phase, also known as ‘North Field South’ (NFS) – consisting of five wellhead platforms.

MEED reported in August 2021 that QatarEnergy had sought commercial offers from contractors for the above two packages and had set 15 September as the bid submission deadline. The deadline was eventually extended to 16 October.

Along with McDermott, contractors that submitted commercial proposals for the North Field offshore packages are understood to include:

  • Hyundai Heavy Industries (South Korea)
  • Saipem (Italy)
  • Sapura (Malaysia)
  • Subsea7 (UK)
  • Technip Energies (France)

North Field offshore packages

There are two offshore EPCI packages within the $28.75bn NFE project and four main onshore packages.

The first offshore package, worth $480m, was awarded to McDermott in 2019 and entails the installation of jackets and other supporting structures at the giant North Field offshore gas reservoir.

Contractors submitted the first round of bids for the second NFE offshore package, estimated to be worth $800m, in February 2021.

The scope of work on this package covers eight unmanned wellhead platforms, two unmanned sensory tower platforms, and the laying of four 38-inch trunklines and four 28-inch intra-field lines, among other structures, at the offshore North Field.

The NFS offshore package is estimated to be worth $500m. Its scope mainly covers EPCI works on five wellhead platforms, each weighing 3,500 to 3,600 tonnes.

McDermott is performing the front-end engineering and design (feed) works on the NFS offshore package and is close to completing the feed execution.

Contractors submitted three categories of bids for the North Field offshore packages on 16 October 2021:

  • Revised prices for the second NFE offshore package
  • New bids for the NFS offshore package
  • Combined commercial offers for the second NFE offshore package and NFS offshore package.

This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here.

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