New Wave Media

April 29, 2019

McDermott Wraps Up Ichthys LNG Campaign

(Photo: McDermott International)

(Photo: McDermott International)

McDermott International announced Monday it has completed the final offshore campaign for the INPEX-operated Ichthys LNG Project, located offshore Western Australia.

This was the second of two remaining work packages left under McDermott's contract, which was the largest subsea contract ever awarded at the time, the company said. Most of the engineering, procurement, construction and installation (EPCI) for the subsea umbilicals, risers and flowlines (SURF) contract awarded in January 2012 was completed by the end of 2017.

The final offshore campaign involved subsea tiebacks to new drill centers and was executed by McDermott's Lay Vessel 108 (LV 108).

"The final campaign was executed in a live producing field, and as such, we put in place additional risk and controls management that ensured our success and met all of the customer expectations. This has demonstrated McDermott's execution capability on a large-scale, complex SURF EPCI scope," said Ian Prescott, McDermott's Senior Vice President for Asia Pacific.

McDermott recorded more than 500,000 engineering workhours from offices across the world, including a Perth led Project Management team that was in place from 2012 and consisted of 160 personnel at its peak in 2017; procured over $600 million in-field equipment; built 48 subsea structures weighing a total of approximately 26,000 metric tons that included one of the largest riser support structures in the world at the time and used three of the company's deepwater installation vessels (DLV 2000, LV 108 and Intermac 650) and other contracted vessels to execute the project.

McDermott said it has a small fabrication scope remaining to be completed at its fabrication yard in Batam, Indonesia, which will conclude its work packages for the Ichthys LNG Project in its entirety in 2019.

The Ichthys LNG Project is one of the largest and most complex resource developments in the world. Located about 220 kilometers offshore Western Australia, it lies in an average water depth of 250 meters. The Ichthys LNG Project is effectively three mega-projects rolled into one, involving some of the largest offshore facilities in the industry, a state-of-the-art onshore processing facility and a 890 kilometer pipeline uniting them for an expected operational life of 40 years.

The project involves liquefying natural gas lifted from the Ichthys gas-condensate field offshore Western Australia at an onshore gas liquefaction plant constructed in Darwin, Northern Territory, and producing and shipping approximately 8.9 million tons of liquefied natural gas (LNG) and approximately 1.65 million tons of liquefied petroleum gas (LPG) per year, along with approximately 100,000 barrels of condensate per day at peak. Approximately 70% of the LNG produced by Ichthys LNG is scheduled to be supplied to Japanese customers.