‘Large’ subsea contract lands on McDermott’s desk for gas field expansion in Malaysia

September 9, 2025, by Nadja Skopljak

U.S. offshore engineering and construction player McDermott has secured an offshore subsea contract with PTTEP Sabah Oil Limited (PTTEP) for a gas field expansion project offshore Malaysia.

McDermott is in charge of the engineering, procurement, construction and installation (EPCI) services for a carbon steel pipeline, along with transportation and installation of key subsea umbilicals, risers and flowlines (SURF) components for the Block H gas field expansion project offshore Sabah, in East Malaysia, covering the Alum, Bemban and Permai deepwater fields.

The Block H development is operated by PTTEP on behalf of partners Petronas Carigali and PT Pertamina Malaysia Exploration Production.

The infrastructure is part of a broader system designed to support the delivery of additional feed gas to the Petronas Floating Liquefied Natural Gas Dua (PFLNG DUA) facility, which has been producing from Block H’s Rotan and Buluh fields since 2021.

The contract has been defined as large, meaning it is worth between $50 million and $250 million.

“This award reflects PTTEP’s continued trust in McDermott’s expertise to deliver complex subsea infrastructure,” said Mahesh Swaminathan, McDermott’s Senior Vice President, Subsea and Floating Facilities. “The expansion of Block H represents a pivotal development in Malaysia’s energy landscape, and our work on this project further reinforces McDermott’s strategic presence, anchored by our Kuala Lumpur office – our hub for global deepwater project delivery.”

Engineering and project management will be led from McDermott’s Subsea and Floating Facilities team in Kuala Lumpur.

McDermott earlier this year completed offshore installation and commissioning activities for another project offshore East Malaysia for PTTEP, covering deepwater work at approximately 1,400 meters.