McDermott awarded two EPCI contracts by Saudi Aramco for Marjan Mega-Project

Source: press releases, 10 July 2019

‘Amazon’, a dive support, flex lay, construction support vessel
‘Amazon’, a dive support, flex lay, construction support vessel (photo: McDermott)

McDermott International, Inc. has announced it has been awarded a contract in excess of USD 3 billion for Package 1 of Saudi Aramco’s Marjan Increment Development Mega-Project to provide engineering, procurement, construction and installation (EPCI) of the Gas-Oil Separation Plant (GOSP), in a consortium with China Offshore Oil Engineering Company (COOEC). A second contract in excess of USD 1.5 billion for Package 4 of Marjan Increment Development Project will provide EPCI of offshore gas facilities and pipelines.

In Package 1, McDermott will lead the consortium with COOEC in an integrated execution model utilising McDermott’s extensive global assets and facilities. The consortium will leverage McDermott’s extensive project management, engineering, global procurement, fabrication, In-Kingdom field-operations and marine knowledge of the Marjan field with COOEC’s fabrication capability and marine vessels. The Package 1 GOSP separation platform is located offshore in the eastern flank of the Arabian Gulf. This is the operational centre of the Marjan increment development mega-project and will draw upon McDermott’s extensive interface and logistics management capabilities.

The award represents the single largest EPCI offshore contract awarded by Aramco. The Marjan Increment Project will increase production from 500,000 to 800,000 barrels of oil per day, with Package 1 GOSP facilities at the core of the development.

The contract includes the fabrication of over 150,000 metric tons consisting of six major topside platforms and jackets, 12 bridges and six bridge support platforms and jackets, as well as over 70 kilometres of 36-inch oil export trunk lines and more than 90 kilometres of 230 kV composite subsea cables.

Marjan Package 1 project management and engineering teams will be centrally located in McDermott’s Asia-Pacific Headquarters in Kuala Lumpur, Malaysia, near McDermott’s Batam Island fabrication facility in Indonesia and the COOEC facility in China. The engineering phase is scheduled to begin in the third quarter of 2019 and fabrication is scheduled to begin in the first quarter of 2020, with overall completion planned for the fourth quarter of 2022. The contract award will be reflected in McDermott’s second quarter 2019 backlog.

Marjan Package 4 represents the second largest EPCI offshore contract awarded by Saudi Aramco in the Marjan Increment Development Project. The Marjan field lies in the Arabian Gulf, off Saudi Arabia’s East Coast.

The contract includes the fabrication of three tie-in platforms and seven wellhead platforms with a total weight of more than 55,700 metric tons. The scope also includes the installation of subsea trunk lines and in-field pipelines in excess of 540 kilometres, and the laying of more than 90 kilometres of subsea cables.

Marjan Package 4 project management will be based out of Dubai, United Arab Emirates, with engineering support from McDermott offices in Al Khobar, Saudi Arabia and Chennai, India. Fabrication will take place at McDermott’s Batam, Jebel Ali and Dammam yards. The engineering phase is scheduled to begin in the third quarter of 2019 and fabrication is scheduled to begin in the first quarter of 2020, with overall completion planned for the fourth quarter of 2022. The contract award will be reflected in McDermott’s second quarter 2019 backlog.