Western Gas Signs Up McDermott and BHGE for Equus Project

McDermott and BHGE have signed a memorandum of understanding  with Western Gas Corporation to be the exclusive development partners for the Equus Gas Project in Western Australia.

The companies were also awarded a contract to support the planning phases of the project.

As part of this initial contract, McDermott and BHGE will work with Western Gas to advance the pre-front end engineering design (pre-FEED) and front-end engineering design (FEED) to final investment decision (FID).

McDermott and BHGE’s joint venture, io Oil & Gas Consulting, will provide the pre-FEED support to deliver a ‘technically robust and cost-efficient’ development plan.

McDermott’s portion of the contract is valued up to $50 million.

Pre-FEED work will begin immediately and is estimated to be complete by Q2 2019. McDermott and BHGE will continue with FEED work thereafter.

Upon FID, McDermott and BHGE are expected to undertake the engineering, procurement, construction, installation and commissioning (EPCIC) of the entire field development scope under a separate contract. The scope will cover reservoir evaluation, drilling and completions, subsea, production facilities, an export pipeline, an LNG facility and a domestic gas connection facility.

This project underscores the value of McDermott’s vertically-integrated capabilities and our collaboration with BHGE, who will leverage their broad portfolio to support the project,” said Ian Prescott, McDermott’s senior vice president for Asia Pacific. “In close collaboration with BHGE, we are taking a holistic approach to field development from drilling, subsea, production facilities and an export pipeline to an LNG facility and onshore gas connection. By more closely connecting each stage of the project, we aim to drive significant efficiencies and cost savings for Western Gas through the full life of the field.”

It was important to us to engage with partners that could offer a full field development and execution solution that would help deliver an efficient development plan, enhance project economics and reduce time to first gas,” said Andrew Leibovitch, executive director for Western Gas. “BHGE and McDermott bring a wealth of global expertise, products and services to help drive efficiencies across the life of the field.”

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