Asia Features Prominently in McDermott's Latest Activities

Asia features prominently in McDermott International, Inc.'s latest announcements Monday, with the integrated engineering, procurement, construction and installation (EPCI) services contractor for global upstream field developments securing two new contracts offshore Western Australia and entering into a partnership with L&T Hydrocarbon Engineering (LTHE) for deepwater projects in India.

The company is set to deploy its new flagship derrick lay vessel, the DLV 2000 -- scheduled to be named at Singapore's Keppel Singmarine yard in April -- for the two new assignments offshore Western Australia.

The first contract is from Japan's Inpex Corp. for the Ichthys LNG (liquefied natural gas) Project offshore, while the second is from Woodside Petroleum Ltd. for the Greater Western Flank Phase-2 Project.

Under the Inpex's contract, the DLV 2000 will install large subsea spools, lay infield umbilicals and lift several Subsea Distribution Units that will provide the hydraulic, chemical and electrical distribution from the umbilicals to the subsea drill centers. Work is expected to be performed in conjunction with McDermott’s other new subsea installation vessel, the Construction Support Vessel 108 (CSV 108), that is already working successfully on the project. 

Meanwhile, McDermott revealed that the CSV 108 would undergo an upgrade later this year to install a Vertical Lay System and Reel Deployment System, also for use in the project and will then be referred to as Lay Vessel 108 (LV 108).

“It is an exciting time to see our newest subsea vessels working side-by-side on this landmark project ... We look forward to this being a very successful start for the DLV 2000 and helping us deliver a successful project for our client, Inpex, and other project stakeholders as well as demonstrating the capability and versatility of the McDermott subsea fleet to the industry,” Hugh Cuthbertson, vice president, Asia said in the press release.

Turning to the second contract, McDermott's DLV 2000 would support a transportation and installation contract for Woodside's Greater Western Flank Phase 2 Project, with the installation to take place approximately 20 miles from the Goodwyn A platform located in the North West Shelf region off Western Australia.

Like the Inpex's contract, DLV 2000 is expected to perform the work in conjunction with CSV 108. Engineering for the project is expected to be carried out by McDermott’s in-house staff in Perth, Australia and Kuala Lumpur, Malaysia. Fabrication and pre-installation of pre-lay support structures and 21 buckle initiators would be undertaken at the firm’s construction facility in Batam Island, Indonesia.

“We are excited to win this opportunity and build on the leading position we have in Australia, where McDermott has a long and established track record of successfully performing projects for Woodside and other clients ... The award reflects our ability to manage all fabrication, installation, regulatory and environmental requirements and expectations without the need to outsource any assets and resources, thereby maximizing the assurance of quality and cost efficiency,” Cuthbertson said.

Workscope for the brownfield project covers transportation and installation of 22 miles of 16-inch corrosion resistant alloy (CRA) clad pipeline, including three In-Line Tees (ILTs) and pipeline end terminations (PLETs) at each end in water depths up to 420 feet.

Elsewhere in the region, McDermott reported Monday that it has signed a long-term exclusive agreement with LHTE -- one of India's oil and gas engineering and construction services provider and a wholly owned subsidiary of Larsen & Toubro -- to cooperate on subsea projects off India's east coast.

“This exclusive agreement further strengthens the relationship between McDermott and LTHE, both companies that have successfully cooperated on several earlier projects in India and, more recently, won the Vashishta deepwater development project,” McDermott’s President and Chief Executive Officer David Dickson said in a separate press release.

“With the emerging east coast of India deepwater market offering attractive development opportunities for our clients, we believe this long-term collaboration provides a compelling value proposition for the successful design and delivery of subsea projects," Dickson commented.

"Together, we leverage McDermott’s proven track record in subsea engineering, procurement and installation with our versatile fleet and lay technologies that will be further enhanced by the upcoming delivery of the Derrick Lay Vessel 2000 and our in-market capabilities and strategically-positioned LTHE fabrication yard and spoolbase at Kattupalli,” he added.

In December 2015, the McDermott-LTHE joint venture clinched an EPCI contract for the Vashishta and S1 Development Project, a greenfield deepwater development off India’s East coast.

“Through this agreement, LTHE and McDermott have developed an approach which includes utilization of LTHE’s state-of-the-art facility, strategically located Kattupalli near Chennai, for fabrication and local spoolbase in India, and offer an optimized and reliable EPCI solution for emerging deepwater projects in India,” Subramanian Sarma, Chief Executive Officer and Managing Director of LTHE said.


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