McDermott has secured a large offshore subsea contract by PTTEP Sabah Oil Limited (PTTEP) for the Block H gas field expansion project, located offshore Sabah in East Malaysia, covering the Alum, Bemban and Permai deepwater fields.
Under the scope of the contract, McDermott will deliver engineering, procurement, construction and installation (EPCI) services for a carbon steel pipeline, along with transportation and installation of key subsea umbilicals, risers and flowlines (SURF) components.
The infrastructure is part of a broader system designed to support the delivery of additional feed gas to the Petronas Floating Liquefied Natural Gas Dua (PFLNG DUA) facility, which has been producing from Block H's Rotan and Buluh fields since 2021.
The exact value of the contract has not been disclosed, butMcDermott defines a large contract as between $50 million and $250 million.
Engineering and project management will be led from McDermott's Subsea and Floating Facilities team in Kuala Lumpur, while offshore installation will leverage the company's versatile marine construction fleet.
Operated by PTTEP on behalf of partners Petronas Carigali and PT Pertamina Malaysia Exploration Production, the Block H development is a cornerstone of Malaysia's deepwater gas strategy, with expansion expected to increase domestic gas supply, supporting long-term energy security and economic growth.
"This award reflects PTTEP's continued trust in McDermott's expertise to deliver complex subsea infrastructure. Leveraging our proven subsea engineering and marine construction capabilities, we are well-positioned to build on our strong track record of successful project execution for PTTEP.
"The expansion of Block H represents a pivotal development in Malaysia's energy landscape, and our work on this project further reinforces McDermott's strategic presence, anchored by our Kuala Lumpur office – our hub for global deepwater project delivery,” said Mahesh Swaminathan, McDermott's Senior Vice President, Subsea and Floating Facilities.
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