Shell Exploration and Production Company, a subsidiary of Royal Dutch Shell, has awarded a subsea umbilical and flowline installation contract to McDermott International for the Silvertip field in the US Gulf of Mexico.


Image: An offshore oil and gas drilling platform. Photo: courtesy of QR9iudjz0/

Under the contract, McDermott will install a flexible flowline, and umbilical and electrical flying leads for the Silvertip field, which forms a part of Shell’s deepwater Perdido development located 370km south of Galveston, Texas, in the Gulf of Mexico.

McDermott will be responsible for project management of engineering and installation of a flexible flowline from the well to a pipeline end termination; installation of an umbilical; installation of four electrical flying leads (EFLs) and pre-commissioning.

Claimed to be one of the most prolific oil and gas producing projects in the Gulf of Mexico, the Perdido production hub also produces oil and gas from the Great White and Tobago fields in addition to Silvertip field.

McDermott plans to conduct project management and engineering work in Houston, Texas. It intends to use North Ocean 102 vessel for the contract work, which is planned to be completed in 2019.

McDermott North, Central and South America senior vice-president Richard Heo said: “This award strengthens McDermott’s relationship with Shell as we work together to safely and competitively deliver this next-generation deepwater energy project.

“Our proven track record of project execution in the Gulf of Mexico, industry-leading subsea capabilities and integrated business model will help drive efficiency while maintaining our uncompromising commitment to safety and quality.”

Designed to gather, process and export oil and gas produced from water depths of around 2,300m-2,800m, the Perdido production hub is capable of handling 100,000 barrels of oil and 200 million cubic feet of gas daily.

Shell operates the Sivertip field with 40% stake while Chevron owns the remaining 60% interest.

The Perdido production hub, which commenced production in 2010, is 35% owned by Shell as operator while Chevron and BP own 37.5% and 27.5% stakes respectively. It is moored in water depth of around 2,450.