McDermott and BHGE share Shwe project win

Left, Lorenzo Simonelli, BHGE chief executive.
Left, Lorenzo Simonelli, BHGE chief executive.

Oilfield service firms McDermott and BHGE have secured work on the Shwe gas field development offshore Western Myanmar.

Contracted by Posco Daewoo for the second phase of the project, the win is the result of a 2017 FEED competition.

The scope of the development covers an eight-subsea-well development at a water depth of between 279 feet and 466 feet.

It also covers brownfield modifications to tie-back the new subsea facilities to the existing Shwe platform.

Ian Prescott, McDermott senior vice president for Asia Pacific, said: “McDermott’s strategic alliance with BHGE is a combination of two leaders in subsea development.

“Together, we offer comprehensive, cost-efficient and advanced technical solutions for our customers. McDermott’s expertise in executing large and complex EPCIC projects in Asia will help us deliver certainty during the next phase of this important gas field development.”

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.

McDermott’s portion of this award is classified as a “large contract”, which will be reflected in its second quarter 2018 backlog.

The contract’s final delivery is scheduled for 2022.

Graham Gillies, vice president of subsea production systems and services at BHGE, said:“Cost efficiency and productivity are top priorities for our customers and are fundamentally changing the way we work and partner across the industry to deliver the solutions they need. Through early engagement and close collaboration with Posco Daewoo, the consortium was able to offer the optimum solution.

“This win demonstrates the value the consortium can create through early engagement with customers, adoption of standardized technology solutions and efficiency of project execution.”

Breaking