McDermott, COOEC Land $3 Billion Saudi Aramco Deal

McDermott has been awarded a contract in excess of $3 billion for Package 1 of Saudi Aramco’s Marjan Increment Development Mega-Project to provide EPCI of the Gas-Oil Separation Plant (GOSP), in a consortium with China Offshore Oil Engineering Company (COOEC).

McDermott will lead the consortium with COOEC in an integrated execution model utilizing McDermott’s extensive global assets and facilities.

The Package 1 GOSP separation platform is located offshore in the eastern flank of the Arabian Gulf. This is the operational center of the Marjan increment development mega-project and will draw upon McDermott’s interface and logistics management capabilities.

The award represents the single largest EPCI offshore contract awarded by Aramco. The Marjan Increment Project will increase production from 500,000 to 800,000 barrels of oil per day, with Package 1 GOSP facilities at the core of the development.

The contract includes the fabrication of over 165,000 tons (150,000 metric tons) consisting of six major topside platforms and jackets, 12 bridges and six bridge support platforms and jackets, as well as over 40 miles (70 kilometers) of 36-inch oil export trunk lines and more than 55 miles (90 kilometers) of 230kV composite subsea cables.

The project management and engineering teams will be centrally located in McDermott’s Asia-Pacific Headquarters in Kuala Lumpur, Malaysia, in close proximity to Batam Island fabrication facility in Indonesia and the COOEC facility in China.

The engineering phase is scheduled to begin in the third quarter of 2019 and fabrication is scheduled to begin in the first quarter of 2020, with overall completion planned for the fourth quarter of 2022.

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