McDermott, BHGE Get Myanmar Contract
McDermott International and Baker Hughes, a GE company (BHGE) have been awarded a contract by South Korean Posco Daewoo for phase two of the Shwe gas field development offshore Western Myanmar.
The McDermott-led consortium took part in a front-end engineering design (Feed) competition in 2017. The successful execution of the Feed followed by the engineering, procurement, construction, installation, and commissioning contract (Epcic) tender led to the award of this project, McDermott said June 27. The company did not disclose the value of the contract. The final delivery is scheduled for 2022.
The Epcic scope covers subsea, umbilical, riser and flowline (Surf) and subsea production systems (Sps) for an eight-subsea-well development and also covers brownfield modifications to tie-back the new subsea facilities to the existing Shwe platform.
McDermott will undertake the Epcic of Surf and brownfield modification scopes, using its regional centre of excellence for project management and engineering in Kuala Lumpur, Malaysia. The Surf structures and production manifolds will be fabricated in the Asia Pacific region. McDermott also will execute the installation and commissioning phase, with field service engineering expertise and tooling support from BHGE's base in Singapore. Installation of Surf and Sps components will be carried out using McDermott's pipelay assets, including the Derrick Lay Vessel 2000.
BHGE will supply the Sps scope, including eight Medium-water Horizontal Xmas Trees (MHXT), eight subsea production control systems and distribution equipment, and topside controls.
The Shwe field development consists of the Shwe, Shwe Phyu and Mya offshore gas fields, located in blocks A-1 and A-3 of the Bay of Bengal, Myanmar. The project is operated by Posco Daewoo and is being developed by a consortium of five companies, including Posco Daewoo, Myanma Oil and Gas Enterprise, India’s ONGC Videsh, Gas Authority of India and Korea Gas Corporation.
Posco Daewoo is looking to invest won 511.7bn ($475mn) in the project. The capital will be spent to develop the Shwe Phyu gas field, one of three gas blocks. Australian Woodside too is looking to develop gas assets offshore Myanmar. The company made its third offshore discovery last year.