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McDermott awarded contracts for Malaysian offshore projects

Source: Market Watch

McDermott International Inc, announced it has secured two sizeable contracts from Sarawak Shell Bhd and Sapura Exploration and Production for offshore projects in Malaysia.

The contracts entail the provision of transportation and installation of offshore structures, pipelines and pre-commissioning work for the Pan Malaysia field development located offshore Sarawak.

McDermott defined a sizeable contract as between US$1 million (US$1=RM4.08) and US$50 million.

In a statement, McDermott said the awards marked its first contracts in Malaysia since relocating its Asia Pacific headquarters to Kuala Lumpur.

The company has since increased its local workforce from 90 to nearly 700 employees.

Ian Prescott, McDermott’s Senior Vice President for Asia Pacific, said these two contracts would give the group the opportunity to strengthen its long-standing relationship with Sarawak Shell and develop a new relationship with Sapura.

“They also provide an excellent opportunity for McDermott to execute offshore projects in Malaysia using many of the company’s assets, from our highly-skilled and talented workforce to our marine assets and our global fabrication expertise,” he said.

The project management team will be based in Kuala Lumpur using the maximum Malaysian workforce to meet the local content requirement. Fabrication of the risers and spools is scheduled to be performed at McDermott’s global execution centre in Batam, Indonesia.

“We have grown significantly in a relatively short space of time. Our Kuala Lumpur office is one of the company’s centres of excellence supporting our global projects.

“This gives our local employees excellent development and growth opportunities. We are extremely pleased to secure the Pan Malaysia field development work which enables us to support the growth of the Malaysian oil and gas sector and the country,” said Prescott.

McDermott is scheduled to use its installation vessel, the Malaysian-registered Derrick Barge 30, for these jobs. The offshore campaign is expected to begin in the second quarter of 2019.

McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry.

Operating in over 54 countries, the company’s locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world.

Source: The Edge Markets