McDermott Wins Feed Work off Myanmar

US-based McDermott International has secured a front-end engineering design (Feed) contract from South Korea’s Posco at the third stage of the Shwe gas project off Myanmar.

McDermott will prepare designs for a new compression platform and bridge link, as well as modifications at an existing platform, it stated on September 24. Work will begin this month in Kuala Lumpur and continue until the second quarter of 2020.

The company’s senior vice president for the Asia-Pacific area, Ian Prescott, said the award was “testament” to McDermott’s project delivery capability at large central production platform facilities. Its exact value was not disclosed, but McDermott said the contract was worth up to $50mn.

Shwe is one in a cluster of gas fields in the Bay of Bengal, off the coast of Myanmar’s wester Rakhine state. McDermott has worked on previous phases of the field’s development, including the delivery of subsea infrastructure under its second stage.

McDermott has been struggling financially since the oil market downturn. It booked a $146mn loss in the three months ending June 30, despite expanding both its revenues and order backlog. On September 20 it disclosed plans to divest its Lummus Technology unit to pay off debts. Lummus is a licensor of technologies used in petrochemicals, refining, gasification and gas processing.