McDermott and BHGE win contracts for Ichthys gas field development

1 August 2019 (Last Updated August 1st, 2019 11:54)

American firm McDermott International and GE company Baker Hughes have won contracts to provide a joint umbilicals, risers and flowlines (URF) and subsea production systems (SPS) solution for the Ichthys Liquefied Natural Gas (LNG) field development, off the northwest coast of Western Australia.

McDermott and BHGE win contracts for Ichthys gas field development
McDermott, BHGE and Inpex officials at the signing of the contract. Credit: McDermott/PR Newswire.

American firm McDermott International and GE company Baker Hughes have won contracts to provide a joint umbilicals, risers and flowlines (URF) and subsea production systems (SPS) solution for the Ichthys Liquefied Natural Gas (LNG) field development, off the north-west coast of Western Australia.

The joint URF and SPS engineering, procurement, construction, installation (EPCI) solution consists of a new subsea well gathering system (GS4), tied back to the existing central processing facility. In addition, the contract includes in-fill URF EPCI scope that involves the development of new subsea wells tied-in to the existing gathering systems. Water depths in the field range from 787ft to 885ft.

Both companies will lead the project from the joint office in Perth, Australia.

McDermott’s fabrication facility in Batam, Indonesia will fabricate the subsea URF equipment. BHGE will use the Subsea Connect execution model to deliver the SPS scope, including vertical Christmas trees, production control systems, distribution equipment, topside controls, and associated installation and commissioning support services.

McDermott senior vice-president for Asia Pacific Ian Prescott said: “McDermott’s alliance with BHGE is a combination of two leaders in subsea development.

“McDermott’s majority share of this award is a testament to our expertise in executing large and complex subsea EPCI projects. Our experience will ensure delivery during the next phase of this key gas field development.”

Previously, BHGE won an order in the first quarter of 2019, which included four Christmas trees and associated SPS equipment for in-fill development.

The companies will begin the offshore installation of the URF and SPS equipment in 2020 and complete the work in 2023. McDermott’s derrick lay vessel, DLV 2000, and other equipment will be used for the field development.

BHGE regional OFE vice-president Graham Gillies said: “We have brought together core elements of our Subsea Connect approach, leveraging early engagement, advanced technology, and our flexible partnership model to deliver improved project economics and certainty for Ichthys LNG.

“This award is a true example of how the industry is changing its approach to subsea projects.”

The Ichthys gas field is operated by Inpex. The Ichthys LNG field development has an expected operational life of 40 years.