McDermott said in a statement on Tuesday that it has secured a subsea contract from Petronas Carigali Brunei for engineering, procurement, construction, installation, and commissioning (EPCIC) of a natural gas development project offshore Brunei.
The award follows McDermott’s successful completion of front-end engineering design (FEED), engineering optimization, and readiness planning for the project.
Under the contract scope, McDermott will provide EPCIC services for a subsea production system and associated infrastructure, including umbilicals, risers, and flowlines, which will connect six wells to a floating production unit for natural gas recovery.
McDermott will also deliver EPCIC services for a gas export pipeline that will supply feedstock to Brunei’s liquefied natural gas (LNG) sector.
The gas field is expected to provide a long-term supply of natural gas, supporting Brunei’s domestic energy needs and LNG export commitments, McDermott said.
McDermott did not provide the price tag of the contract or any additional details regarding the project.
FPU
MISC, a unit of Petronas, said in a separate statement that it has received a letter of award for the provision of lease, operation, and maintenance of a floating production unit (FPU) for the natural gas development project in Brunei from Petronas Carigali Brunei.
The LNG carrier operator said this “landmark” contract was secured through an international competitive bidding and marks MISC’s strategic entry into Brunei’s offshore oil and gas market.
According to MISC, the charter is for a firm period of 12 years with PCBL holding the right to extend for up to three additional one-year periods.
MISC said the FPU will be deployed at offshore Brunei, where it is expected to contribute to the long-term supply of feedstock for Brunei’s LNG sector, supporting the country’s export commitments, national revenue, and energy security.
The FPU is designed with a production and processing capacity of 450 million standard cubic feet of gas per day (MMscfd) and 1,170 barrels of condensate per day with storage capacity of 300,000 barrels, ensuring operational flexibility.
MISC also did not provide the contract price or any additional details about the project.
CA2
Last month, Japan’s Mitsubishi Corporation announced that a final investment decision had been made for the development plan of the Petronas-operated natural gas field Block CA2, located offshore Brunei.
The company participates in the CA2 project through its wholly-owned subsidiary, Diamond Energy Exploration & Production (Brunei Deepwater)or DEEP, which holds 18.75 percent interest in the CA2 project.
According to the Petronas website, the company has a 45 percent operating stake in Block CA2, consisting of Keratau and Kelidang fields.
On the other hand, Brunei LNG’s export plant in Lumut, one of the world’s oldest LNG export facilities, has a capacity of 6.7 mtpa.
UK-based LNG giant Shell and Mitsubishi each have a 25 percent share in the facility, while the Brunei government holds 50 percent.
This facility mostly ships LNG to Japan and South Korea.
