Saudi Aramco awards $4.5 bln Marjan packages to McDermott

State-owned Saudi Aramco has awarded two contracts in excess of $4.5 billion for Package 1 and Package 4 of its Marjan Increment Development project to McDermott, the oil and gas contractor said in a statement.

Package 1 contract includes engineering, procurement, construction and installation (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 its extensive global assets and facilities.

Marjan Package 4 contract comprises engineering, procurement, construction and installation (EPCI) of offshore gas facilities and pipelines. It represents the second largest EPCI offshore contract awarded by Saudi Aramco in the Marjan Increment Development project.

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.

"This award signifies Saudi Aramco's confidence in McDermott's project management expertise and ability to meet the interface, logistics and coordination challenges that an EPCI project of this vast scale represents," Linh Austin, Senior Vice President, Middle East and North Africa at McDermott, said.

Marjan Package 1

The contract includes the fabrication of over 165,000 tons, consisting of six major topside platforms and jackets; 12 bridges and six bridge support platforms and jackets; as well as over 70 kilometers of 36-inch oil export trunk lines; and more than 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 its 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.

The contract award will be reflected in McDermott's second quarter 2019 backlog.

Marjan Package 4

The contract includes the fabrication of three tie-in platforms and seven wellhead platforms with a total weight of more than 61,400 tons.

The scope also includes the installation of subsea trunk lines and in-field pipelines in excess of 540 kilometers, and the laying of more than 90 kilometers of subsea cables.

Project management will be based out of Dubai, with engineering support from McDermott offices in Al Khobar and Chennai, India. Fabrication will take place at McDermott's Batam, Jebel Ali and Dammam yards.

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.

The contract award will be reflected in McDermott's second quarter 2019 backlog.