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PTTEP Hires McDermott for Gas Job Offshore Malaysia

March 27, 2024

(Credit: MISC)
(Credit: MISC)

McDermott has been awarded a ‘sizeable’ offshore transportation, installation and commissioning contract from PTTEP Sabah Oil Limited (PTTEP) for the Kikeh subsea gas lift project, offshore Sabah in East Malaysia.

Under the scope of the contract, McDermott will remove the existing flexible gas lift riser and perform the installation and commissioning of a new dynamic riser section and flowline comprised of two thermoplastic composite pipe jumpers.

This will enable gas delivery to a subsea production system tied back to the Kikeh floating production, storage and offloading (FPSO) vessel.

For McDermott, a sizeable contract means it’s valued between $1 million and $50 million.

McDermott already worked at the Kikeh field, having performed the installation of subsea infrastructure between 2011 and 2012, and again in 2014, in the nearby Siakap North-Petai field.

"We pioneered reel-lay installation for pipe-in-pipe production and water injection flowlines in the region, underscoring our commitment to engineering innovation. Returning to the Kikeh field not only reaffirms our expertise, but also presents another opportunity to deliver exceptional results through our unmatched experience in offshore transportation, subsea installations, and commissioning,” said Mahesh Swaminathan, McDermott's Senior Vice President, Subsea and Floating Facilities.

Project management and engineering will be executed from Kuala Lumpur, Malaysia, with support from other McDermott offices.

Operated by PTTEP on behalf of partner Petronas Carigali and PT Pertamina Malaysia Exploration Production, the Kikeh field has been producing from the existing Kikeh FPSO since 2007. It is located 75 miles (120 kilometers) northwest of the island of Labuan.

The Kikeh FPSO is the first and largest deepwater FPSO in Malaysia.


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