McDermott International, has announced that it has been awarded a contract in excess of $3 billion for Package 1 of Saudi Aramco’s Marjan Increment Development Mega-Project to provide engineering, procurement, construction and installation (EPCI) of the Gas-Oil Separation Plant (GOSP), in a consortium with China Offshore Oil Engineering Company (COOEC).
McDermott will lead the consortium with COOEC in an integrated execution model utilizing McDermott’s extensive global assets and facilities. The consortium will leverage McDermott’s extensive project management, engineering, global procurement, fabrication, In-Kingdom field-operations and marine knowledge of Marjan field with COOEC’s fabrication capability and marine vessels. The Package 1 GOSP separation platform is located offshore in the eastern flank of the Arabian Gulf. This is the operational center of the Marjan increment development mega-project and will draw upon McDermott’s extensive interface and logistics management capabilities.
The award represents the single largest EPCI offshore contract awarded by Aramco. The Marjan Increment Project will increase production from 500,000 to 800,000 bopd, with Package 1 GOSP facilities at the core of the development.
“This award signifies Aramco’s confidence in McDermott’s project management expertise and ability to meet the interface, logistics and coordination challenges that an EPCI project of this vast scale represents,” said Linh Austin, Senior Vice President, Middle East and North Africa. “The award is validation of the One McDermott Way, our locally focused and globally-integrated approach to deliver certainty to the most complex projects.”
The contract includes the fabrication of over 165,000 tons (150,000 metric tons) consisting of six major topside platforms and jackets, 12 bridges and six bridge support platforms and jackets, as well as over 40 mi (70 km) of 36-in. oil export trunk lines and more than 55 mi (90 km) of 230 kV composite subsea cables.
The project management and engineering teams will be centrally located in McDermott’s Asia-Pacific Headquarters in Kuala Lumpur, Malaysia, in close proximity to our Batam Island fabrication facility in Indonesia and the COOEC facility in China. The engineering phase is scheduled to begin in the third quarter of 2019 and fabrication is scheduled to begin in the first quarter of 2020, with overall completion planned for the fourth quarter of 2022. The contract award will be reflected in McDermott’s second quarter 2019 backlog.