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McDermott awarded record EPCI contract by Saudi Aramco for Marjan Package 1

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Oilfield Technology,

McDermott International, Inc. has been awarded a contract in excess of US$3 billion for Package 1 of Saudi Aramco's Marjan Increment Development Mega-Project to provide engineering, procurement, construction and installation (EPCI) of the Gas-Oil Separation Plant (GOSP), in a consortium with China Offshore Oil Engineering Company (COOEC).

McDermott will lead the consortium with COOEC. The consortium will leverage McDermott's extensive project management, engineering, global procurement, fabrication, In-Kingdom field-operations and marine knowledge of the Marjan field with COOEC's fabrication capability and marine vessels. The Package 1 GOSP separation platform is located offshore in the eastern flank of the Arabian Gulf, the operational centre of the Marjan increment development mega-project.

The award represents the single largest EPCI offshore contract awarded by Aramco. The Marjan Increment Project will increase production from 500 000 to 800 000 bpd, with Package 1 GOSP facilities at the core of the development.

"This award signifies Aramco's confidence in McDermott's project management expertise and ability to meet the interface, logistics and coordination challenges that an EPCI project of this vast scale represents," said Linh Austin, Senior Vice President, Middle East and North Africa. "The award is validation of the One McDermott Way, our locally focused and globally-integrated approach to deliver certainty to the most complex projects."

The contract includes the fabrication of over 165 000 t, consisting of six major topside platforms and jackets, 12 bridges and six bridge support platforms and jackets, as well as over 40 miles (70 km) of 36-in. oil export trunk lines and more than 55 miles (90 km) of 230kV composite subsea cables.

The project management and engineering teams will be centrally located in McDermott's Asia-Pacific Headquarters in Kuala Lumpur, Malaysia, in close proximity to the company's Batam Island fabrication facility in Indonesia and the COOEC facility in China. The engineering phase is scheduled to begin in 3Q19 and fabrication is scheduled to begin in 1Q20, with overall completion planned for 4Q22. The contract award will be reflected in McDermott's 2Q19 backlog.

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