Baker Hughes, a GE company (BHGE), McDermott International and L&T Hydrocarbon Engineering (LTHE) have secured a $1.6bn subsea contract for Oil & Natural Gas Corporation’s (ONGC) deepwater project in India.
The deepwater project of ONGC involves development of block DWN-98/2 in the Krishna Godavari basin.
Following the completion of the project, the total peak gas production rate from the project is estimated to be about 16 million metric standard cubic meter per day (MMSCMD), with peak oil production rate of 80,000 barrels per day (BPD).
Under the contract, the three firms will be responsible for the delivery of all subsea production systems (SPS) for the project.
The integrated subsea package include the supply of 34 deepwater trees, and the installation of subsea umbilicals, risers and flowlines (SURF) at a water depth of between 300 meters and 3,200 meters.
McDermott Asia Pacific senior vice president Ian Prescott said: “The consortium will provide an integrated solution that not only takes full advantage of the international expertise brought by BHGE and McDermott, but provides a key made-in-India element by LTHE that represents local capabilities as well.
“Together, we will deliver the best in class solution to ONGC with cost-efficiency and industry leading safety.”
As part of the contract, BHGE will deliver subsea hardware including trees, manifolds, controls, connection systems, SPS installation tools and services, as well as flexible risers and flowlines, umbilical and topside controls.
It will also offer the pre-commissioning services for additional phases of the project.
McDermott will be responsible for transportation and installation of SURF and SPS facilities. To execute the contract, McDermott will use its resources in Kuala Lumpur, Malaysia and Chennai, India as well as its installation assets Derrick Barge 30, Lay Vessel North Ocean 105 and Lay Vessel 108.
ONGC said: “ONGC took a strategic decision of integrating hitherto separate work packages of SPS and SURF into a single integrated (SPS + SURF) work package tender.
“This will help to eliminate major interface issues among SPS and SURF packages, resulting in time and cost optimization to the company.”
ONGC expects the block to commence gas and oil production in December 2019 and March 2021, respectively.
Recently, India’s state-owned firm has secured an environmental approval to carry out development drilling of 72 more wells in the Krishna-Godavari basin offshore the southern Indian state Andhra Pradesh.