Posco Daewoo has awarded a contract to a consortium of McDermott International, and Baker Hughes, a GE company, for the Phase Two development of Shwe gas field offshore Myanmar.

The execution of a front-end engineering and design (FEED) followed by the engineering, procurement, construction, installation and commissioning (EPCIC) tender led to the award of this contract for the consortium.

The EPCIC scope includes SURF and SPS for an eight-subsea-well development at a water depth of between 279ft (85m) and 466ft (142m), as well as brownfield modifications to tie-back the new subsea platforms to the existing Shwe facility.

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

“Together, we offer comprehensive, cost-efficient and advanced technical solutions for our customers. McDermott’s expertise in executing large and complex EPCIC projects in Asia will help us deliver certainty during the next phase of this important gas field development.”

BHGE subsea production systems and services vice president Graham Gillies said: “Cost efficiency and productivity are top priorities for our customers and are fundamentally changing the way we work and partner across the industry to deliver the solutions they need.

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By GlobalData
“McDermott’s strategic alliance with BHGE is a combination of two leaders in subsea development.”

“Through early engagement and close collaboration with Posco Daewoo, the consortium was able to offer the optimum solution. This win demonstrates the value the consortium can create through early engagement with customers, adoption of standardised technology solutions and efficiency of project execution.”

McDermott will take up the EPCIC of SURF and brownfield modification by making use of its regional centre for project management and engineering in Kuala Lumpur, Malaysia.

The company will fabricate SURF structures and production manifolds in the Asia Pacific region.

It will also undertake installation and commissioning phase, with BHGE’s base in Singapore providing field service engineering expertise and tooling support.

Components of SURF and SPS will be installed using McDermott’s pipelay assets, which include the Derrick Lay Vessel 2000.

BHGE will be responsible for the SPS scope covering eight Medium-water Horizontal Xmas Trees (MHXT), eight subsea production control systems and distribution equipment, and topside controls.

McDermott’s portion in this contract is categorised as large and will be reported in the backlog of its second quarter of fiscal year 2018. McDermott categorises a large contract as between $50m and $250m.

Final delivery under the contract is slated for 2022.