Mcdermott in Gendalo-Gehem deal (Indonesia)

Mcdermott International, provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments, has received good news from Indonesia.

McDermott International, Inc. announced today that a consortium, which includes subsidiaries of McDermott and PT Encona Inti Industri, has been notified of its selection as the successful bidder in the tender process for an engineering, procurement and construction (“EPC”) contract for the Gendalo-Gehem natural gas development in East Kalimantan, Indonesia.

Award of the contract will be subject to various conditions, including government and regulatory approvals and final investment decision.

The Chevron-operated Gendalo-Gehem project is located in the Makassar Strait offshore East Kalimantan in water depths of approximately 6,000 feet. The project will include two separate hub developments, each with its own floating production unit (FPU), subsea drill centers, export gas and condensate pipelines and an onshore receiving facility.

The project has a planned design capacity of 1.1 billion cubic feet of natural gas and 47,000 barrels of condensate per day. This project is estimated to contain total potentially recoverable natural gas resources of 3 trillion cubic feet.