McDermott wins Goron subsea fabrication work offshore Australia

Source: McDermott International

McDermott International, Inc. (NYSE:MDR) announced that one of its subsidiaries has been awarded a contract from Vetco Gray Australia Pty Limited for the fabrication of subsea structures and spools for Chevron's (NYSE:CVX) Gorgon Upstream Project. The value is expected to be in excess of US$50 million and will be included in McDermott's fourth-quarter 2010 bookings. 

The project involves the construction of 12,000 tonnes of subsea structures and spools, which will be carried out at McDermott's fabrication facility in Batam Island, Indonesia. 

"This project is a significant win for our company and further strengthens McDermott's strategic positioning as a service provider in the fast developing subsea, umbilicals, risers and flowlines ("SURF") market in Asia Pacific," said Stephen M. Johnson, McDermott's President and Chief Executive Officer. 

The scope of work encompasses the fabrication of various eight-slot, six-slot and four-slot manifolds, including pipeline termination structures, pipeline end terminations, spools, well jumpers, and subsea pig launchers/receivers. Work is scheduled to commence later this year, with completion expected in the last quarter of 2012. 

This is the second contract McDermott has won for the Gorgon project. Earlier this year, the company was contracted to supply more than 60 pre-assembled racks and units with an estimated combined weight of approximately 25,000 tonnes. 

The Gorgon Upstream Project supports Chevron's development of the Gorgon and Janz fields located offshore Northwest Australia. Gorgon is the world's largest subsea to beach Liquefied Natural Gas development, and is Australia's largest known gas resource.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs