McDermott International has been awarded a major engineering, procurement, construction, installation, and commissioning (EPCIC) contract by Petronas Carigali for an ultra-deepwater gas development project offshore Brunei Darussalam. The award follows McDermott's successful completion of the front-end engineering and design (FEED) phase for the project.

Project Scope and Components

The contract encompasses EPCIC services for a comprehensive subsea production system and associated infrastructure. This includes umbilicals, risers, and flowlines that will connect six wells to a floating production unit for natural gas recovery. Additionally, McDermott will deliver EPCIC services for a gas export pipeline designed to supply feedstock to Brunei's liquefied natural gas sector.

Project Identification and Details

The contract is for the Kelidang gas field development, a cluster project based on the Kelidang North East, Keratau, and Keratau South West discoveries. These fields hold combined reserves of several trillion cubic feet of gas, along with small amounts of associated liquids. The overall development concept consists of three key elements: a leased floating production vessel, a subsea production system, and a gas export pipeline. The subsea contract is potentially worth up to $1 billion, with Baker Hughes partnering with McDermott as the key subsea production system provider.

Execution and Management

Project management for the EPCIC contract will be led from McDermott's engineering centre of excellence in Kuala Lumpur, Malaysia. This team will be supported by personnel across other McDermott offices and project sites. The company highlights that moving from FEED to a full EPCIC award demonstrates its engineering capabilities and experience in delivering complex regional subsea projects.

Floating Production Unit Award

In a related development, MISC has confirmed receiving a Letter of Award from Petronas Carigali for the provision of a floating production unit for the same Kelidang project. The contract involves the lease, operation, and maintenance of the unit for a 12-year term, with options for Petronas to extend for up to three additional one-year periods. The floating production unit is scheduled to begin operations in the first half of 2029.

Strategic Importance

The Kelidang gas field is expected to provide a long-term supply of natural gas. This supply will support both Brunei's domestic energy requirements and its existing liquefied natural gas export commitments.