McDermott wins contract in LNG-producing nation Trinidad despite corporate troubles

Tuesday, 11 February 2020
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LNG Journal editor

McDermott International, the US energy and LNG engineering company, was awarded a large contract by Anglo-Australian commodities and energy firm BHP for subsea work on the Ruby Project, offshore the LNG producing nation Trinidad and Tobago.

McDermott, which is currently undergoing a corporate overhaul under Chapter 11 bankruptcy protection, will provide subsea umbilicals, risers and flowlines (SURF), transportation and installation, as well as the pre-commissioning of one jacket and topsides for the Ruby venture.

Field details

The Ruby Field is in the Block 3 (a) development area of Trinidad, about 28 miles (45 kilometres) off the northeast coast.

The field has estimated recoverable resources of 13.2 million barrels of oil and 274 billion cubic feet of natural gas.

First production is expected within a year and peak output is expected to be about 16,000 barrels of oil per day and around 80 million standard cubic feet per day of natural gas.

“We are pleased to support BHP in this new contract that continues to build on our successful track record in Trinidad ,”said Mark Coscio, Senior Vice President, North, Central and South America.

“The combination of heavy lift and pipelay capabilities of McDermott's Derrick Lay Vessel (DLV) 2000 are best suited for this project as it can efficiently transport and install both the flowlines and platform,” added Coscio.

McDermott successfully executed a similar installation scope for the BP Trinidad & Tobago (BPTT) Angelin project last year.

It also was awarded a contract in January of 2019 by BPTT for the engineering, procurement and construction of the Cassia Compression Platform, located 35 miles off the coast of Trinidad.

BHP, as the operator, holds a 68.46 percent interest and Heritage Petroleum and the National Gas Company of Trinidad and Tobago (NGC) hold 20.13 percent and 11.41 percent respectively.

Engineering and project management of the project will be performed in Houston with engineering support from McDermott's Mexico City office. McDermott's DLV 2000 is scheduled to transport and install the flowlines and platform.

The project will begin immediately with completion expected in August 2020.

Despite its corporate troubles, McDermott is involved in some of the world’s leading LNG construction projects, including several on the US Gulf Coast and the North Field Expansion in Qatar.

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