McDermott crosses the finish line for subsea gig at Shell’s gas project

November 26, 2025, by Melisa Cavcic

U.S. offshore engineering and construction player McDermott has put the finishing touches on an assignment, encompassing multiple natural gas fields, which Sarawak Shell, a subsidiary of the UK-headquartered energy giant Shell, operates off the coast of Malaysia.

DLV 2000 vessel on FaS gas development project in Malaysia; Source: McDermott

While announcing the completion of offshore transportation and installation of subsea infrastructure for the F22, F27, and Selasih (FaS) gas field development off the coast of Sarawak in East Malaysia, McDermott explains that the FaS pipelay and heavy lift project scope included the transportation and installation of two pipeline segments, one section of flexible pipelay, pre-commissioning services for all infield pipelines, and the structural installation of three jackets and topsides.

Shell picked the U.S. player in July 2023 to undertake transportation and installation services for two pipeline segments and one section of flexible pipelay. McDermott deployed its DLV 2000 heavy lift and pipelay vessel for the project, said to underscore its strategic relevance for offshore work in Asia.

Mahesh Swaminathan, McDermott’s Senior Vice President, Subsea and Floating Facilities, commented: “This project demonstrates the strength of our long-standing relationship with Shell and our ability to deliver complex projects safely and efficiently.

“It also highlights the depth of talent in our Kuala Lumpur office, which continues to play a leading role in delivering complex offshore projects for Malaysia and beyond.”

The U.S. giant claims that the project recorded more than one million safe work hours, which is seen as a milestone that reflects the firm’s safety-first culture and strong collaboration with Shell and its project partners.

OceanMight, a subsidiary of KKB Engineering, was in charge of fabricating structures for the FaS project in December 2022. The first steel for the three wellhead platforms was cut in April 2023 at the company’s yard at Jalan Bako, Kuching, Sarawak. The sail-away of three topsides and three jackets, weighing over 5,700 metric tons, occurred in August 2024.

The MLNG FaS project, which is part of the MLNG production sharing contract (PSC), is operated by Sarawak Shell (SSB, 40% stake), together with partners: Petronas Carigali (40%) and Petroleum Sarawak Exploration & Production (20%).

McDermott, together with Chiyoda, as two main engineering, procurement, and construction (EPC) contractors, recently confirmed a revised EPC agreement for a liquefied natural gas (LNG) project in the United States.