McDermott, BHGE Score Ichthys Contracts

McDermott International and Baker Hughes, a GE company (BHGE), announced on Tuesday that the companies have been awarded contracts to provide a joint subsea umbilicals, risers and flowlines (SURF) and subsea production systems (SPS) solution for the INPEX-operated Ichthys liquefied natural gas (LNG) field development, located off the northwest coast of Western Australia.

The award, which follows the completion of a front-end engineering and design (FEED) competition and tender for the engineering, procurement, construction, installation (EPCI) scope, includes a joint SURF and SPS EPCI solution, comprising a new subsea well gathering system (GS4), tied back to the existing central processing facility. In addition to the GS4 scope, the award includes in-fill SURF EPCI scope involving the development of new subsea wells tied-in to the existing gathering systems. Water depths in the field range from 240 to 270 meters.

McDermott and BHGE will lead the project from the joint Project Management and Engineering office in Perth, Australia. Fabrication of the subsea SURF equipment will be carried out at McDermott's fabrication facility in Batam, Indonesia. Utilizing the Subsea Connect execution model, BHGE will deliver the SPS scope, including vertical christmas trees, associated production control systems, distribution equipment and topside controls as well as associated installation and commissioning support services.

This award follows an earlier award granted to BHGE in the first quarter of 2019, including four christmas trees and associated SPS equipment for in-fill development. Offshore installation of the SURF and SPS equipment will commence in 2020 and be completed in 2023. The field development will be carried out using state-of-the-art assets, including McDermott's derrick lay vessel, DLV 2000.

"McDermott's alliance with BHGE is a combination of two leaders in subsea development. McDermott's majority share of this award is a testament to our expertise in executing large and complex subsea EPCI projects. Our experience will ensure delivery during the next phase of this key gas field development," said Ian Prescott, McDermott's Senior Vice President for Asia Pacific.

Graham Gillies, BHGE Regional OFE Vice President, said, "We have brought together core elements of our Subsea Connect approach, leveraging early engagement, advanced technology, and our flexible partnership model to deliver improved project economics and certainty for Ichthys LNG. This award is a true example of how the industry is changing its approach to subsea projects."

Located about 220 kilometers off the northwest coast of Western Australia, Ichthys LNG is one of the largest and most complex resource developments in the world. The development has an expected operational life of 40 years and involves some of the largest offshore facilities in the industry and state-of-the-art onshore LNG processing and exporting facilities.