McDermott wins SURF subsea contract for Macedon Gas Project offshore Australia

By Phaedra Friend Troy

Oilfield services firm McDermott International Inc. (NYSE:MDR) has won a subsea contract through its Australian subsidiary for deepwater offshore engineering, construction and installation at the Macedon Gas Project offshore Western Australia.

The SURF (Subsea, Umbilicals, Riser and Flowlines) contract is for the Macedon Gas Project in the Pilbara region off Western Australia. McDermott's first SURF contract in Australia, the work scope includes detailed engineering, procurement, fabrication, transportation and installation of a 48-mile-long (77-kilometer-long), 20-inch-diameter pipeline, as well as the installation of subsea umbilicals and flexible flowlines in waters measuring up to 591 feet (180 meters) deep.

"We are extremely pleased to win this significant subsea award in the Asia Pacific segment as it reinforces McDermott's strengthening position in subsea construction projects," said Stephen M. Johnson, McDermott's chairman, president and CEO. "We are also gratified by our customer's confidence in providing McDermott with the opportunity to demonstrate our growing expertise in reliably delivering complex deepwater projects within a challenging time frame."

Macedon Gas Project

BHP Billiton serves as the operator of the $1.5 billion Macedon Gas Project in the Exmouth Sub-Basin. The project involves developing the Macedon natural gas field on Production License WA-42-L, about 62 miles (100 kilometers) west of Onslow.

The Macedon development will include four offshore production wells connected to a wet gas pipeline that delivers to a 200 Mmscf/d natural gas treatment plant onshore at Ashburton North. Processed gas will be transported via the Dampier to Bunbury Natural Gas Pipeline to the Western Australia market.

With recoverable reserves of up to 750 billion cubic feet of gas, Macedon is operated by BHP Billiton with 71.43 percent interest. Apache Northwest holds the remaining 28.57 percent.

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