The work will begin in the third quarter of 2019 and is expected to be completed in the second quarter next year
Image: McDermott has secured FEED contract from Posco International. Photo: courtesy of C Morrison/Pixabay.
McDermott International has secured a front-end engineering design (FEED) contract from Posco International for the Shwe Phase 3 gas field development, located 70km offshore Myanmar.
The value of the contract has not been disclosed. However, McDermott indicated it to be in the $1-50m (£0.81- 40.38m) range.
Building on McDermott’s work on earlier phases of the Shwe gas field development, the scope of the new contract includes FEED services for a new compression platform, a bridge link and modifications in existing platform.
McDermott senior vice president Asia Pacific Ian Prescott said: “This award is a testament to McDermott’s excellent FEED and EPCIC project delivery capability on large central production platform facilities.
“We look forward to continuing to work with POSCO INTERNATIONAL Corporation to meet Myanmar’s growing energy demands.”
The work will begin in the third quarter of 2019 and is expected to be completed in the second quarter next year. The contract will be executed by McDermott’s Center of Engineering Excellence in Kuala Lumpur.
In June 2018, Posco Daewoo awarded an engineering, procurement, construction, installation and commissioning (EPCIC) contract to a consortium of McDermott International and Baker Hughes, a GE company, for the second phase of the Shwe gas field development.
Other FEED contracts secured by McDermott
In August, McDermott had bagged FEED contract for PetroLogistics’ proposed propane dehydrogenation facility (PDH facility) planned to be built along the US Gulf Coast.
As per the contract terms, McDermott will be responsible for the development of the PDH facility, which will have a design capacity of 500 kilo tonnes per annum (KTA).
Prior to that, in July, Total Oman E&P Development, in partnership with Oman Oil Company, had awarded a contract to McDermott to provide FEED services for the Sohar LNG Bunkering Project in Oman.
The Sohar LNG Bunkering Project aims to establish Oman as a regional LNG bunkering hub, which will supply LNG as a fuel to marine vessels.