McDermott wins $4.5bn Marjan EPCI contracts from Saudi Aramco

McDermott wins $4.5bn Marjan EPCI contracts from Saudi Aramco
Published: 11 July 2019 - 5:45 a.m.
By: Carla Sertin

McDermott has won two engineering, procurement, construction and installation (EPCI) contracts from Saudi Aramco worth more than $4.5bn for the Marjan Increment Programme.

The larger contract, worth $3bn, falls under the first package of the Marjan Increment Programme and includes EPCI work on a gas-oil separation plant (GOSP) in consortium with China Offshore Oil Engineering Company (COOEC).

"This award signifies Aramco's confidence in McDermott's project management expertise and ability to meet the interface, logistics and coordination challenges that an EPCI project of this vast scale represents," said Linh Austin, senior vice president, Middle East and North Africa. "The award is validation of the One McDermott Way, our locally focused and globally-integrated approach to deliver certainty to the most complex projects."

The package 1 GOSP separation platform is offshore, in the eastern flank of the Arabian Gulf. The contract includes the fabrication of over 165,000 tonnes (150,000 metric tonnes) consisting of six major topside platforms and jackets, 12 bridges and six bridge support platforms and jackets, as well as over 40 miles (70 kilometres) of 36-inch oil export trunk lines and more than 55 miles (90 kilometres) of 230kV composite subsea cables.

The engineering phase for package 1 is scheduled to begin in the third quarter of 2019 and fabrication is scheduled to begin in the first quarter of 2020, with overall completion planned for the fourth quarter of 2022. The contract award will be reflected in McDermott's second quarter 2019 backlog.

The second contract, worth more than $1.5bn, covers package 4 of the Marjan programme, which includes EPCI work for offshore gas facilities and pipelines.

Marjan Package 4 represents the second largest EPCI offshore contract awarded by Saudi Aramco in the Marjan Increment Development Project. The Marjan field lies in the Arabian Gulf, off Saudi Arabia's East Coast.

"The award of Marjan Package 4, in addition to Marjan Package 1, is further evidence of Aramco's confidence in McDermott's ability to deliver on a project of this scale," said Linh Austin, senior vice president, Middle East and North Africa. "Our locally focused and globally-integrated approach we refer to as the One McDermott Way, is integral to our ability to provide effective, innovative solutions for our clients."

The contract includes the fabrication of three tie-in platforms and seven wellhead platforms with a total weight of more than 61,400 tonnes (55,700 metric tonnes). The scope also includes the installation of subsea trunk lines and in-field pipelines in excess of 330 miles (540 kilometres), and the laying of more than 55 miles (90 kilometres) of subsea cables.

The engineering phase is scheduled to begin in the third quarter of 2019 and fabrication is scheduled to begin in the first quarter of 2020, with overall completion planned for the fourth quarter of 2022. The contract award will be reflected in McDermott's second quarter 2019 backlog.

The Marjan Increment Project will increase production from 500,000 to 800,000 barrels of oil per day.

McDermott was ranked third on Oil & Gas Middle East's list of the Top 30 EPC Contractors for 2019.

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