McDermott, PT Encona Clinch EPC Deal for Chevron's Gendalo-Gehem Project

McDermott International, Inc. (McDermott) reported Friday that a consortium comprising subsidiaries of McDermott and Indonesia's PT Encona Inti Industri has been notified it was successful in the tender for an engineering, procurement and construction (EPC) contract for the Gendalo-Gehem natural gas development in East Kalimantan, Indonesia.

The firm said the contract award will be subject to various conditions, including government and regulatory approvals and final investment decision (FID).

Chevron is the operator of the Gendalo-Gehem deepwater natural gas project, which includes 2 separate hub developments, each with its own floating production unit, subsea drill centers, gas and condensate pipelines, and onshore receiving facility.

The FID for the project, with a maximum daily production of around 1.1 billion cubic feet of natural gas and 47,000 barrels of condensate, is planned for 2014, subject to the timing of government approvals.

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