McDermott International, Inc. has secured a significant offshore transportation, installation, and commissioning contract from PTTEP Sabah Oil Limited for the Kikeh subsea gas lift project, situated 75 miles (120 kilometres) northwest of the island of Labuan, offshore Sabah in East Malaysia.

Under the terms of the agreement, McDermott will undertake the removal of the existing flexible gas lift riser and execute the installation and commissioning of a new dynamic riser section and flowline, consisting of two thermoplastic composite pipe jumpers. This installation will facilitate gas delivery to a subsea production system linked to the Kikeh floating production, storage, and offloading vessel.

Mahesh Swaminathan, McDermott’s senior vice president, Subsea and Floating Facilities, commented, “McDermott is uniquely positioned to deliver this project, having performed the installation of subsea infrastructure in the Kikeh field between 2011 and 2012, and again in 2014, in the nearby Siakap North-Petai field. We pioneered reel-lay installation for pipe-in-pipe production and water injection flowlines in the region, underscoring our commitment to engineering innovation. Returning to the Kikeh field not only reaffirms our expertise but also presents another opportunity to deliver exceptional results through our unmatched experience in offshore transportation, subsea installations, and commissioning.”

The project management and engineering activities will be conducted from Kuala Lumpur, Malaysia, with additional support from other McDermott offices.

The Kikeh field, operated by PTTEP in collaboration with partners Petronas Carigali and PT Pertamina Malaysia Exploration Production, has been in production since 2007 using the existing Kikeh FPSO. This FPSO is notably the first and largest deepwater FPSO in Malaysia.

*McDermott defines a sizeable contract as between USD $1 million and USD $50 million.

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28th March 2024