Since 2007, the oil field has been producing through the *Kikeh* floating production storage and offloading (FPSO) vessel. Credit: Kardasov Films/Shutterstock.

Oil and gas industry services provider McDermott has been awarded a contract for the Kikeh subsea gas lift project by PTTEP Sabah Oil.

The project, situated 120km north-west of Labuan, Malaysia, involves the replacement of an existing gas lift riser and the installation of a new dynamic riser section and flowline.

This upgrade is crucial for the continued gas delivery to the subsea production system associated with the Kikeh FPSO vessel.

McDermott said the engineering and project management for this contract will be conducted from McDermott’s Kuala Lumpur office, with additional support from its global network.

The value of the contract, categorised by McDermott as sizeable, ranges between $1m and $50m.

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Since 2007, it has been producing through the Kikeh FPSO, which is claimed to be nation’s first and largest deep-water FPSO.

According to GlobalData, the Kikeh oilfield has produced 95.5% of its total recoverable reserves, peaking in 2009.

With current projections, the field is expected to produce until reaching its economic limit in 2027, contributing around 1% to Malaysia’s daily production.

McDermott senior vice-president of subsea and floating facilities Mahesh Swaminathan said: “McDermott is uniquely positioned to deliver this project, having performed the installation of subsea infrastructure in the Kikeh field between 2011 and 2012, and again in 2014, in the nearby Siakap North-Petai field.

“We pioneered reel-lay installation for pipe-in-pipe production and water injection flowlines in the region, underscoring our commitment to engineering innovation. Returning to the Kikeh field not only reaffirms our expertise but also presents another opportunity to deliver exceptional results through our unmatched experience in offshore transportation, subsea installations and commissioning.”

Earlier this year, McDermott secured another offshore contract in Malaysia for the Kasawari carbon capture and storage (CCS) project.

The work on the CCS project includes the transportation and installation of a 138km pipeline, a 15,000-tonne CCS platform jacket and a connecting bridge to an existing processing platform.