McDermott Wins Big Tyra Contract from Maersk

McDermott said December 22 it has been awarded a “substantial” contract from Denmark’s Maersk Oil for work on its Tyra redevelopment project.

The US contractor defines substantial as $500mn to $750mn, and says the contract marks a return for McDermott to North Sea engineering, procurement, construction and commissioning (EPCC) work. 

The contract is for seven topside structures, 6 connecting bridges and six jacket extensions, all meeting the stringent technical requirements for the Danish sector of the North Sea. Part of the work will be done from Kuala Lumpur, Malaysia and Batam, Indonesia demonstrating the US firm’s “global engineering and fabrication capabilities.” With a combined weight of all structures provided by McDermott of 29,000 metric tons (mt), the scope of work represents one of the largest combined projects for McDermott in the North Sea; the largest component is the 16,500mt Tyra East G platform’s gas processing topside. Work on the contract now announced is expected to begin early 2018 and the lump sum contract will be reflected in McDermott’s 4Q 2017 backlog. It will be fulfilled between February 2020 and January 31 2021.

The Danish Underground Consortium (DUC) approved a $3.4bn investment in the full redevelopment of the Tyra gas field between 2019 and 2022, operator Maersk Oil said December 1. DUC is owned by Maersk 31.2%, Shell 36.8%, Danish state-owned Nordsofonden 20% and Chevron 12%. 

Maersk Oil is due to be acquired by French major Total in 2018, subject to regulatory approvals. Total has committed to proceed with the Tyra project, if the takeover proceeds. 

Gas from the Tyra gas field in the Danish North Sea will cease from November 2019 until July 2022 as the Tyra platform is rebuilt and, during that period, securing the country’s gas supply will be a challenge, because 90% of Danish gas production is processed on Tyra.

Tyra East platform (Photo courtesy of Maersk Oil)