Update: McDermott nets $4,5b in Marjan field offshore contracts

U.S. offshore installation and construction firm McDermott has, together with China’s COOEC, scored a contract worth more than $3 billion as part of Saudi Aramco’s push to boost production from the Marjan offshore oil field in Saudi Arabia. Separately, McDermott won a $1.5B contract for “Marjan Package 4.”

McDermott said the first contract, with COOEC, was for Package 1 of Saudi Aramco’s Marjan Increment Development Mega-Project to provide engineering, procurement, construction and installation (EPCI) of the Gas-Oil Separation Plant (GOSP), in a consortium with China Offshore Oil Engineering Company (COOEC).

The contract includes the fabrication of over 165,000 tons (150,000 metric tons) consisting of six major topside platforms and jackets, 12 bridges and six bridge support platforms and jackets, as well as over 40 miles (70 kilometers) of 36-inch oil export trunk lines and more than 55 miles (90 kilometers) of 230kV composite subsea cables.

McDermott will lead the consortium. COOEC will support the project with fabrication capability and vessels.

According to McDermott, the award represents the single largest EPCI offshore contract awarded by Aramco. The Marjan Increment Project will increase production from 500,000 to 800,000 barrels of oil per day, with Package 1 GOSP facilities at the core of the development.

“The project management and engineering teams will be centrally located in McDermott’s Asia-Pacific Headquarters in Kuala Lumpur, Malaysia, in close proximity to our Batam Island fabrication facility in Indonesia and the COOEC facility in China. The engineering phase is scheduled to begin in the third quarter of 2019 and fabrication is scheduled to begin in the first quarter of 2020, with overall completion planned for the fourth quarter of 2022,” McDermott said.

Marjan package 4

Apart from the contract in cooperation with China’s COOEC, McDermott has won a contract “in excess of $1.5 billion” for Package 4 of Saudi Aramco’s Marjan project.

Under this contract, McDermott will provide engineering, procurement, construction and installation (EPCI) of offshore gas facilities and pipelines.

The contract includes the fabrication of three tie-in platforms and seven wellhead platforms with a total weight of more than 61,400 tons (55,700 metric tons). The scope also includes the installation of subsea trunk lines and in-field pipelines in excess of 330 miles (540 kilometers), and the laying of more than 55 miles (90 kilometers) of subsea cables.

“Marjan Package 4 represents the second largest EPCI offshore contract awarded by Saudi Aramco in the Marjan Increment Development Project,” McDermott said.

Project management will be based out of Dubai, United Arab Emirates, with engineering support from McDermott offices in Al Khobar, Saudi Arabia and Chennai, India. Fabrication will take place at McDermott’s Batam, Jebel Ali and Dammam yards.  Fabrication is expected to start in the first quarter of 2020, with overall completion planned for the fourth quarter of 2022.

To remind, Saudi Aramco on Tuesday said it had awarded 34 contracts worth $18 billion to various contractors with the aim to boost production capacity by 550,000 barrels per day of Arabian Crude Oil and 2.5 BSCFD of gas from Marjan and Berri offshore fields.

Apart from McDermott, Saipem has also confirmed it has won two contracts worth over $3.5 billion.

The article has been updated to include information on McDermott’s Marjan Package 4 contract