Thailand’s state energy company PTTEP chooses US engineers McDermott for contract offshore Sabah in Malaysia
Thailand’s state-run energy firm, Public Company Exploration and Production (PTTEP), has awarded US engineers McDermott a sizeable contract for transportation, installation and commissioning of a project offshore the state of Sabah in east Malaysia.
Malaysia’s Petronas posts profits fall as over 440 LNG cargoes sold amid Canada and Indonesia project boosts
Petronas, the Malaysian state-owned energy company with oil and gas projects and onshore and offshore LNG production plants, reported quarterly net profits down by a third while expecting its cargo portfolio to increase after LNG Canada comes on stream and overall cargo sales and prices to improve.
Engineers McDermott awarded offshore Malaysia pipeline and installation contract to help underpin LNG
McDermott, the US energy and liquefied natural gas project engineering company, was awarded an offshore pipeline and installation contract from Shell subsidiary Sarawak Shell for the Selasih natural gas fields pipelay and heavy-lift project off the coast of Sarawak in East Malaysia to help underpin LNG production.
Shell is the operator for the exploration acreage and new fields in the F22 and F27 Selasih area which are part of the Malaysia LNG extension and production sharing contract (PSC).
Nearly all the gas produced offshore Sarawak is supplied to Malaysia LNG and to the gas-to-liquids (GTL) plants in Bintulu.
Analysts note that Shell is still very active in Malaysia and is involved in oil and gas offshore Sabah and Sarawak under about 16 PSCs in which its interests range from 20 percent to 85 percent.
Offshore Sabah, the UK-based major’s local subsidiary operates two producing oil fields, including the Gumusut-Kakap deepwater field, with Shell’s interest 29 percent, and the Malikai deepwater field, Shell interest 35 percent.
However, Shell is even more active offshore Sarawak where it is the operator of eight producing gas fields with Shell’s interest 50 percent.
Among the projects were included the 2019 abandonment of depleted wells for the Serai field and the Saderi fields.
Shell then signed agreements for the extension of the Malaysia LNG PSC using other sources.
McDermott scope
Under the scope of the latest contract with Shell, McDermott said it would perform transportation and installation services for two pipeline segments and one section of flexible pipelay.
McDermott will also provide pre-commissioning works on all infield pipelines and perform the structural installation of three jackets and topsides.
“This is the fourth project we are executing for Shell under the Subsea and Floating Facilities project portfolio, demonstrating the strength of our long-standing relationship,” said Mahesh Swaminathan, McDermott's Senior Vice President for Subsea and Floating Facilities.
The project management and engineering will be executed in Malaysia, leveraging the local expertise.
Offshore installations will be performed using the “DLV2000”, McDermott's versatile heavy lift and pipelay vessel.
“To ensure efficient project delivery, we will draw upon the expertise from our Kuala Lumpur center, which supports the global execution of subsea and offshore projects,” stated Swaminathan.
