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McDermott and BHGE win contracts for Ichthys gas field development

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LNG Industry,

McDermott International Inc. and Baker Hughes, a GE company (BHGE) have released a joint statement claiming that they have won contracts to provide solutions for the Ichthys LNG field development, which is located offshore northwestern Australia, and which is operated by INPEX.

According to the statement, the contracts include a joint umbilical, risers and flowlines (URF) and subsea production system (SPS) EPCI solution, consisting of a new subsea well gathering system (GS4) tied back to the existing central processing facility. In addition to the GS4 scope, the contract also includes in-fill URF EPCI scope involving the development of new subsea wells tied-in to the existing gathering systems. Water depths in the field reportedly range from 787 ft to 885 ft.

McDermott and BHGE claim that they will lead the project from the joint project management and engineering office in Perth, Australia. Fabrication of the subsea URF equipment will be executed at McDermott’s fabrication facility in Batam, Indonesia. Making use of the Subsea Connect execution model, BHGE claims that it 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. According to the statement, this contract follows an another contract awarded to BHGE in 1Q19, which included four christmas trees and associated SPS equipment for in-fill development. Offshore installation of the URF and SPS equipment will begin next year, with completion scheduled for 2023. The field development will be executed utilising state-of-the-art assets, such as McDermott’s derrick lay vessel, DLV 2000.

Ian Prescott, McDermott’s Senior Vice President for Asia Pacific, said: “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.”

Graham Gillies, BHGE Regional OFE Vice President, added: “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.”

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