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Myanmar Shwe Contract Goes to McDermott, BHGE

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A consortium of McDermott International, Inc. and Baker Hughes, a GE company (BHGE) has won a contract from POSCO DAEWOO Corp. for the second phase of the Shwe gas field development offshore Western Myanmar, McDermott reported Wednesday.

“McDermott’s strategic alliance with BHGE is a combination of two leaders in subsea development,” Ian Prescott, McDermott’s senior vice president for Asia Pacific, said in a written statement.

Under the contract, the McDermott-BHGE consortium will provide POSCO-DAEWOO with:

Subsea umbilicals, risers and flowlines (SURF)
Subsea production systems (SPS) for an eight-well development at a water depth ranging from 279 to 466 feet (85 to 142 meters)
Brownfield modifications to tie-back the new subsea facilities to the existing Shwe platform

From left, BHGE CEO Lorenzo Simonelli, POSCO DAEWOO CEO Kim Young-Sang and McDermott President and CEO David Dickson sign a contract for phase two of the Shwe gas field development offshore Myanmar June 26 at the 27th World Gas Conference in Washington, D.C. SOURCE: McDermott International, Inc.
McDermott stated that it will undertake the engineering, procurement, construction, installation and commissioning (EPCIC) of the SURF and brownfield modification scopes of the contract. In addition, the company said that it will use its Kuala Lumpur, Malaysia regional center of excellence for project management and engineering. Also, McDermott noted that fabrication of the SURF structures and production manifolds will take place in the Asia Pacific region. The company added that it will execute the installation and commissioning phase using field service engineering expertise and tooling support from BHGE’s Singapore base.

BHGE will supply the SPS scope, stated McDermott, which pointed out the SPS scope includes:

Eight Medium-water Horizontal Xmas Trees (MHXT)
Eight subsea production control systems and distributed equipment
Topside controls
McDermott also reported that its pipelay assets, including the Derrick Lay Vessel 2000, will carry out installation of the SURF and SPS components.

POSCO DAEWOO operates the Shwe field development, which comprises the Shwe, Shwe Phyu and Mya offshore gas fields in blocks A-1 and A-3 of the Bay of Bengal in Myanmar. Other companies in the Shwe consortium include Myanma Oil and Gas Enterprise, Oil and Natural Gas Corp Videsh Limited, Gas Authority of India and Korea Gas Corp.

According to McDermott, which valued its share of the award within the range of US$50 million to US$250 million, final delivery of the contract should occur in 2022.

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