Subsea contract let for Macedon project off Australia

Rick Wilkinson
OGJ Correspondent

MELBOURNE, July 8 -- Partners in the Macedon project let a contract for the subsea installation of umbilicals, risers, and flowlines to the Australian subsidiary of McDermott International Inc.

BHP Billiton is operator of the $1.5 billion Macedon project that will develop an estimated 400-750 bcf of offshore gas in the Pilbara region of Western Australia (OGJ Online, Dec. 9, 2010).

The contract entails detailed engineering, procurement, fabrication, transportation, and installation in as much as 180 m of water of a 77 km, 20-in. pipeline, as well as the installation of subsea umbilicals and flexible flowlines using McDermott's vessels.

The Macedon project is on production lease WA-42L, about 100 km west of Onslow and will initially have four subsea completed wells producing wet gas to the pipeline that will transport the gas to a 200 MMscfd onshore gas treatment plant to be constructed at Ashburton North, 17 km southwest of Onslow.

A sales gas pipeline will connect the plant to the Dampier to Bunbury pipeline for gas sales to domestic markets in Western Australia.

BHP expects first gas production in 2013.

BHP holds 71.45% interest in Macedon; Apache Corp. holds the remainder.

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