Subsea Contracts Go to McDermott and BHGE

Subsea Contracts Go to McDermott and BHGE
McDermott and BHGE will collaborate to expand existing Ichthys LNG subsea facilities.

McDermott International, Inc. and Baker Hughes, a GE company (BHGE) reported Tuesday afternoon that they have won subsea contracts for the Inpex Corp.-operated Ichthys Liquefied Natural Gas (LNG) field development off Western Australia’s northwest coast.

Under the contracts, McDermott and BHGE will collaborate to provide subsea umbilicals, risers and flowlines (URF) and subsea production systems (SPS) to expand existing Ichthys subsea facilities, the companies noted in a written statement emailed to Rigzone. They added the joint URF and SPS engineering, procurement, construction and installation (EPCI) project will yield a new subsea well gathering system (GS4) tied back to the existing central processing facility.

Moreover, the companies stated the award includes an in-fill URF EPCI scope that will develop new subsea wells tied into the existing gathering system. Water depths in the Ichthys field range from 787 to 885 feet (240 to 270 meters).

“McDermott’s alliance with BHGE is a combination of two leaders in subsea development,” Ian Prescott, McDermott’s senior vice president for Asia Pacific, said in the written statement. “McDermott’s majority share of this award is a testament to our expertise in executing large and complex subsea EPCI projects. Our experience will ensure delivery during the next phase of this key gas field development.”

The contract winners will lead the Ichthys project from the joint Project Management and Engineering office in Perth, Australia, and McDermott’s fabrication facility in Batam, Indonesia will fabricate the subsea URF equipment. BHGE will deliver the SPS scope, which includes:

  • vertical christmas trees
  • associated production control systems
  • distribution equipment and topside controls
  • associated installation and commissioning support services

BHGE and McDermott stated that offshore installation of the URF and SPS equipment will start next year and conclude in 2023. During the first quarter of 2019, BHGE won another Ichthys contract for four christmas trees and associated SPS equipment for in-fill development, the companies added.

“We have brought together core elements of our Subsea Connect approach, leveraging early engagement, advanced technology and our flexible partnership model to deliver improved project economics and certainty for Ichthys LNG. This award is a true example of how the industry is changing its approach to subsea projects.”

LNG shipments from Ichthys, which is expected to operate for approximately 40 years, began in October 2018.


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