McDermott Wins Significant India Contract

McDermott International has been awarded a contract by India’s Reliance Industries for the KG-D6 subsea gas field development in the Krishna Godavari basin, it said November 1 in 3Q results. It did not provide exact detail but said that the contract is worth between $250mn and $500mn.

The Houston, Texas-based contractor will provide engineering, procurement, installation and pre-commissioning of subsea flowlines, vent lines, and a pipeline-end manifold for connection with six subsea wells in the R-cluster field at a water depth of up to 6,890 feet (2,100 meters), including in-field pipelines, monoethylene glycol (MEG) line, pipeline-end terminals, jumpers, risers, umbilicals system and the modification of the control riser platform to interface with the new facilities.

In addition to the R-Cluster of six subsea wells, the option for five to seven more subsea wells can be exercised by Reliance for an optional S-cluster package, McDermott said. The optional scope also consists of two additional subsea structures and flowlines at a water depth between 4,593 feet (1,400 meters) and 5,905 feet (1,800 meters).

Reliance is developing deepwater gas and oil fields in the KG-D6 block (more commonly called KG-D6) in the Krishna Godavari basin offshore on the east coast of India. The north-western boundary of the block is 40 to 60 km southeast of Kakinada in water depth of between 1,312 feet (400 meters) and 7,545 feet (2,300 meters). R-Cluster and Satellite-Cluster discoveries are in the KG-D6 block.  Reliance is planning to develop these discoveries in phases.

McDermott reported 3Q2017 net income of $94.7mn, up from the year-ago quarter's $16.1mn. Net income for the first nine months of 2017 was $153mn, compared with $34.6mn in 9M2016.

Shardul Sharma