After FEED work, McDermott nets subsea contract with Petronas off Brunei

December 9, 2025, by Nadja Skopljak

Petronas Carigali Brunei, a subsidiary of Malaysia’s state-owned energy giant Petronas, has awarded McDermott with a subsea contract for a natural gas development project off the coast of Brunei.

McDermott will provide engineering, procurement, construction, installation and commissioning (EPCIC) services for a subsea production system and associated infrastructure, including umbilicals, risers and flowlines, which will connect six wells to a floating production unit (FPU) for natural gas recovery.

Furthermore, the company will deliver EPCIC services for a gas export pipeline that will supply feedstock to Brunei’s liquefied natural gas (LNG) sector.

This follows McDermott’s completion of front-end engineering design (FEED), engineering optimization and readiness planning for the project.

“Transitioning from FEED to a full EPCIC award underscores McDermott’s engineering excellence and proven ability to deliver complex subsea projects across the region,” said Mahesh Swaminathan, McDermott’s Senior Vice President, Subsea and Floating Facilities. “It also reinforces McDermott’s collaborative approach in working with customers to drive engineering value. We look forward to continuing our collaboration with PETRONAS Carigali Brunei and its partners to advance this project safely and efficiently.”

Project management will be led from McDermott’s engineering center of excellence in Kuala Lumpur, Malaysia, supported by teams across other company offices and project sites.

Although the name of the project has not been revealed, the last development that Petronas greenlighted in Brunei is the CA2 project. As disclosed by partner Mitsubishi Corporation, a final investment decision (FID) was made on November 7 for the development plan of the natural gas field in Block CA2.

Petronas Carigali Brunei also recently tasked MISC Berhad (MISC), Malaysia’s owner and operator of offshore floating and energy-related maritime solutions and services, for a 12-year charter of an FPU, expected to begin operation in the first half of 2029 at a natural gas project in Brunei.