McDermott Wins More Work Off Saudi Arabia

Houston-based McDermott International revealed on August 1 it had secured further work off Saudi Arabia.

The engineering firm has been handed an engineering, procurement, construction and installation (EPCI) contract for a single production deck module at the offshore Hasbah gas field. The work was awarded by Saudi state oil giant Saudi Aramco, which just weeks earlier selected McDermott to expand facilities at two other fields in the Arabian Gulf.

The new contract also covers hook-up and modification work at the nearby Karan fields. McDermott will install wellhead positive displacement motors (PDMs) at four wells, along with 6 km of 16-inch corrosion resistant allow-cladded flowline, 6.5 km of subsea umbilical cable, offshore tie-ins to existing facilities and electrical modifications to existing PDMs.

The contract is worth between $50-250mn, according to McDermott, and will be booked in the firm’s third-quarter backlog. Engineering work will take place in Saudi Arabia, while fabrication will be carried out in the UAE.

Beyond its two Saudi awards, the past month has seen McDermott win an EPCI contract in Australia, front-end engineering design (feed) work in Oman and Qatar, and a pre-feed order in Argentina. These successes have helped lift McDermott's prospects following a disappointing second quarter.