McDermott wins contract to develop Shwe Phase 3 gas field

26 September 2019 (Last Updated September 26th, 2019 13:02)

US engineering contractor McDermott International has won a front-end engineering design (FEED) contract from Posco International for the development of the Shwe Phase 3 gas field.

McDermott wins contract to develop Shwe Phase 3 gas field
McDermott wins Shwe Phase 3 FEED contract. Credit: anthony_goto.

US engineering contractor McDermott International has won a front-end engineering design (FEED) contract from Posco International for the development of the Shwe Phase 3 gas field.

The Shwe field is located approximately 44 miles offshore Myanmar.

The work is set to start in the third quarter of this year and will be carried out by McDermott in its Center of Engineering Excellence in Kuala Lumpur, Malaysia.

McDermott Asia Pacific senior vice-president Ian Prescott said: “This award is a testament to McDermott’s excellent FEED and EPCIC project delivery capability on large central production platform facilities.

“We look forward to continuing to work with Posco International Corporation to meet Myanmar’s growing energy demands.”

The scope of work under the contract includes FEED services for a new compression platform, a bridge link, and modifications in existing platforms.

McDermott said that the work is scheduled to be completed by the second quarter of next year.

The sizeable contract value ranges from $1m to $50m, the company added.

In June 2018, Posco Daewoo awarded a contract to a consortium of McDermott International and Baker Hughes, a GE company (BHGE) for the phase two development of the Shwe gas field.

McDermott’s joint venture (JV) Qingdao McDermott Wuchuan Offshore Engineering (QMW) recently won a contract to provide three complex modules for the Arctic LNG 2 Project.

Last month, McDermott International and BHGE won contracts to provide joint umbilicals, risers and flowlines (URF), as well as a subsea production system (SPS) solution for the Ichthys Liquefied Natural Gas (LNG) field development, off the north-west coast of Western Australia.

Operated by Inpex, the Ichthys LNG field development has an expected 40-year operational life.