McDermott International has said the huge subsea contract it scooped recently from Japan’s Inpex for the Ichthys liquefied natural gas project in Australia is worth around $2 billion.
Confirming an award revealed by Inpex earlier this month, NYSE-listed McDermott said the deal – secured along with Heerema Marine Contractors – is the largest subsea contract it has ever secured.
McDermott is to work on the subsea umbilical, rise and flowline (SURF) project for Ichthys which includes engineering, procurement, construction and installation (EPCI) as well as pre-commissioning work.
Although preliminary work has already begun, construction of the 16,000 tonnes of subsea equipment will start at a facility on Batam Island, Indonesia in early 2013, McDermott said on Wednesday.
“McDermott will also install mooring systems for the floating production, storage and [offloading] vessel and central processing facility as well as installation engineering for future flowlines, risers and umbilicals.” The company will use the subsea vessels Emerald Sea and North Ocean 102 for the installation.
“The contract value is in the order of magnitude of $2 billion and is the largest subsea contract McDermott has been awarded to date,” the company wrote in a bourse statement on Wednesday.
Inpex earlier this month listed off the contractors and fabricators awarded deals for the $34 billion project after a final investment decision was made.
The JKC joint venture featuring JGC, KBR and Chiyoda was awarded the largest contract for the engineering procurement and construction of the onshore LNG facilities.
Under sub-contract to the JKC joint venture, the construction of the LNG plant is expected to be done by two companies in Thailand and one in China, which will fabricate 200,000 tonnes of LNG modules for shipment to Darwin. One of the Thai yards is publicly-listed STP&I, while the Chinese yard is Offshore Oil Engineering Corporation, although this has not been officially confirmed.
Inpex confirmed that Samsung Heavy Industries would build the huge 110,000-tonne semi-submersible central processing facility. The newbuild FPSO is yet to be awarded, but sources indicate a pairing between Daewoo Shipbuilding & Marine Engineering with Technip have a competitive advantage.
GE Vetco Gray has won the contract to provide the large subsea production system. Several contracts were awarded linked to the 890-kilometre subsea pipeline. Saipem will carry out the complicated pipelay, manufacturing will be done by Mitsui-Europipe with Sumitomo, Nippon and Steel-Metal One, while the concrete coating has been let to Mitsui-Bredero Shaw.