McDermott returns to Malaysian field under ‘sizeable’ contract with PTTEP

McDermott has won what it defines as a “sizeable” offshore transportation, installation and commissioning contract from PTTEP Sabah Oil Limited (PTTEP) for a project offshore Malaysia on which it had worked in the early 2010s.

Under the contract worth between $1 million and $50 million, McDermott will provide offshore transportation, installation and commissioning for the Kikeh subsea gas lift project, located 120 kilometers northwest of the island of Labuan, offshore Sabah in East Malaysia.

The company is in charge of removing the existing flexible gas lift riser and performing the installation and commissioning of a new dynamic riser section and flowline comprised of two thermoplastic composite pipe (TCP) jumpers. This will enable gas delivery to a subsea production system tied back to the Kikeh floating production, storage and offloading (FPSO) vessel.

Project management and engineering will be executed from Kuala Lumpur, Malaysia, with support from other McDermott offices.

Operated by PTTEP on behalf of partner Petronas Carigali and PT Pertamina Malaysia Exploration Production, the Kikeh field has been producing from the existing Kikeh FPSO since 2007, said to be the first and largest deepwater FPSO in Malaysia.

“McDermott is uniquely positioned to deliver this project, having performed the installation of subsea infrastructure in the Kikeh field between 2011 and 2012, and again in 2014, in the nearby Siakap North-Petai field,” said Mahesh Swaminathan, McDermott’s Senior Vice President, Subsea and Floating Facilities.

“We pioneered reel-lay installation for pipe-in-pipe production and water injection flowlines in the region, underscoring our commitment to engineering innovation. Returning to the Kikeh field not only reaffirms our expertise, but also presents another opportunity to deliver exceptional results through our unmatched experience in offshore transportation, subsea installations, and commissioning.”

In terms of McDermott’s other activities in Malaysia, the company at the beginning of this year secured an offshore contract from Malaysia Marine and Heavy Engineering (MMHE) for the country’s first carbon capture and storage (CCS) project.

Under the scope of the contract, McDermott will perform transportation and the structural installation of a 138-kilometer pipeline section, a 15,000 metric tonne CCS platform jacket, and bridge connecting to the existing central processing platform for the Kasawari project.