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November 28, 2018

McDermott wins subsea contract for Shell’s Great White Frio

US engineering contractor McDermott International has won a contract to provide a new subsea umbilical and flowline installation at Shell’s Great White Frio development in Alaminos Canyon Block 857 in the US Gulf of Mexico.

US engineering contractor McDermott International has won a contract to provide a new subsea umbilical and flowline installation at Shell’s Great White Frio development in Alaminos Canyon Block 857 in the US Gulf of Mexico.

Under the contract, McDermott will deliver project management and engineering, as well as install a flexible flowline from the well to a pipeline end termination.

In addition, the company will also install a 2,000ft-long steel flying lead and two electrical flying leads (EFLs) in a water depth of 8,000ft.

The project management and engineering works of the contract are expected to be carried out in Houston, Texas.

“This award demonstrates McDermott’s commitment to helping Shell safely and competitively deliver Great White.”

McDermott North, Central and South America senior vice-president Richard Heo said: “This award demonstrates McDermott’s commitment to helping Shell safely and competitively deliver Great White – their next-generation deepwater energy project.

“McDermott’s proven track record of project execution in the Gulf of Mexico with Shell, combined with our industry-leading subsea capabilities and integrated business model, will help drive efficiency while maintaining our uncompromising commitment to safety and quality.”

The company expects to complete the offshore installation by mid-2019.

Located in the southern portion of the Alaminos Canyon protraction area, the Great White Frio development is a deepwater oil and gas project operated by Shell Offshore.

The project is part of the Perdido Regional Development, which also comprises Silvertip and Tobago fields.

Shell operates the Perdido Regional Host production hub, which processes oil and gas from these three fields. The company has operating stakes in all three fields.

The Perdido Host has a peak production capacity of 100,000 barrels of oil and 200 million cubic feet of gas a day. Shell owns a 35% interest in the Host platform, while Chevron and BP respectively own 37.5% and 27.5%.

Though the specific value of the subsea contract has not been disclosed, McDermott has estimated it at up to $50m.

The latest contract award comes after McDermott secured a SURF contract for the Silvertip project in August.

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