POSCO DAEWOO Corp. Selects McDermott and BHGE for SURF and Subsea Contract for Myanmar Gas Field Development
Thursday 28 June 2018
McDermott International, Inc. and Baker Hughes, a GE company, announced the award of a contract by POSCO DAEWOO Corp. for phase two of the Shwe gas field development offshore Western Myanmar.
The McDermott-led consortium took part in a FEED competition in 2017. The successful execution of the FEED followed by the EPCIC tender led to the award of this project.
The EPCIC scope covers SURF and SPS for an eight-subsea-well development at a water depth of between 279 feet (85 meters) and 466 feet (142 meters). It also covers brownfield modifications to tie-back the new subsea facilities to the existing Shwe platform.
McDermott will undertake the EPCIC of SURF and brownfield modification scopes, using its regional center of excellence for project management and engineering in Kuala Lumpur, Malaysia. The SURF structures and production manifolds will be fabricated in the Asia Pacific region. McDermott also will execute the installation and commissioning phase, with Field Service Engineering expertise and tooling support from BHGE's base in Singapore. Installation of SURF and SPS components will be carried out using McDermott's state of the art pipelay assets, including the Derrick Lay Vessel 2000.
BHGE will supply the SPS scope, including eight Medium-water Horizontal Xmas Trees (MHXT), eight subsea production control systems and distribution equipment, and topside controls.
McDermott's portion of this award is classified as a large *contract, which will be reflected in its second quarter 2018 backlog. The contract's final delivery is scheduled for 2022.
The Shwe field development consists of the Shwe, Shwe Phyu and Mya offshore gas fields, located in blocks A-1 and A-3 of the Bay of Bengal, Myanmar. The project is operated by POSCO DAEWOO Corp. and is being developed by a consortium of five companies, including POSCO DAEWOO Corp., Myanma Oil and Gas Enterprise, Oil and Natural Gas Corp. Videsh Limited, Gas Authority of India and Korea Gas Corporation.
* - McDermott defines a large contract as between USD $50 million and USD $250 million.