McDermott International has announced a sizeable (US$1-$50 million) contract from Shell Exploration and Production Company, a subsidiary of Royal Dutch Shell, for new subsea umbilical and flowline installation at the Great White Frio development in Alaminos Canyon Block 857 in the U.S. Gulf of Mexico.
McDermott's scope of work includes project management and engineering; installation of a flexible flowline from the well to a pipeline end termination; installation of one 2,000-foot-long steel flying lead; and installation of two electrical flying leads (EFLs) in a water depth of 8,000 feet. Project management and engineering are scheduled to be performed in Houston, Texas, with offshore installation by McDermott targeted for completion in mid-2019.
"This award demonstrates McDermott's commitment to helping Shell safely and competitively deliver Great White – their next-generation deep-water energy project," said Richard Heo, McDermott's Senior Vice President for North, Central and South America. "McDermott's proven track record of project execution in the Gulf of Mexico with Shell, combined with our industry-leading subsea capabilities and integrated business model, will help drive efficiency while maintaining our uncompromising commitment to safety and quality."
The Great White development, which is operated by Shell Offshore Inc. (Shell), is a pioneer deep-water oil and gas project that has unlocked a new frontier of energy development in the Gulf of Mexico's Lower Tertiary Paleogene. The Shell-operated Perdido Regional Host production hub, which saw first commercial production in 2011, processes oil and gas from the Silvertip, Great White and Tobago fields.
The Perdido Host is one of the most prolific oil and gas producing projects in the Gulf of Mexico and has the capacity to handle 100,000 barrels of oil and 200 million cubic feet of gas daily. Shell is focused on safely and competitively growing production from the Perdido Area by optimizing the performance of existing wells and through targeted additional in-field and near-field development opportunities.
The contract award will be reflected in McDermott's fourth quarter 2018 backlog.