The Kelidang project is an ultra-deepwater gas development offshore Brunei, based on the Kelidang North East, Keratau, and Keratau South West discoveries. The cluster holds combined reserves of several trillion cubic feet of gas, plus small amounts of associated liquids.

Development Concept and Key Contracts

The development concept comprises three main components: a leased floating production vessel, a subsea production system (SPS), and a gas export pipeline. Two major contracts have been awarded for this landmark project. McDermott International secured an integrated engineering, procurement, construction, installation, and commissioning (EPCIC) contract from Petronas Carigali, valued at close to $1 billion. This contract covers the subsea production system, associated infrastructure including umbilicals, risers, and flowlines, and the gas export pipeline. The SPS will connect six wells to a floating production unit. Separately, MISC confirmed it received a Letter of Award from Petronas for the lease, operation, and maintenance of the floating production unit for a 12-year charter, with options to extend.

Project Partners and Timeline

Baker Hughes is partnering with McDermott as the key subsea production system provider. The floating production unit is expected to commence operations in the first half of 2029. McDermott was previously involved in front-end engineering and design (FEED) work for the subsea project.