Reliance Awards McDermott Contract for KG-D6 Subsea Development
McDermott International announced a letter of award for a contract ranging from $250 million to $500 million from Reliance Industries for the deepwater KG-D6 subsea field development in the Krishna Godavari Basin, located off the east coast of India.
McDermott will provide engineering, procurement, installation, and precommissioning of subsea flowlines, vent lines, and a pipeline-end manifold for connection with six subsea wells in the R-cluster field at a water depth of up to 6,890 ft, including in-field pipelines, monoethylene glycol (MEG) line, pipeline-end terminals, jumpers, risers, umbilicals system, and the modification of the control riser platform to interface with the new facilities.
In addition to the R-Cluster of six subsea wells, the option for five to seven more subsea wells can be exercised by the client for an optional S-cluster package. The optional scope also consists of two additional subsea structures and flowlines at a water depth between 4,593 ft and 5,905 ft.
The company’s Engineering Center of Excellence office in Chennai will provide engineering and project management oversight for the project.
The contract is scheduled for completion by 2Q 2020 for the base scope, and the 1Q 2021 for the optional scope.
The northwestern boundary of the KG-D6 block is about 24 to 37 miles southeast of Kakinada in water depth of between 1,312 ft and 7,545 ft. R-Cluster and Satellite-Cluster discoveries are in the KG-D6 block. Reliance is planning to develop these discoveries in phases.
3Q Asia Update
In India, the ONGC Vashishta project continues to progress with the North Ocean 102 (lay vessel) completing the installation of the remaining deepwater umbilicals and most of the pipeline jumpers. Consortium partner, Larsen & Toubro (L&T), has completed the construction of the onshore pipeline sections and installation of the onshore umbilical.
L&T and McDermott signed a long-term agreement in February focused on subsea projects in the deepwater east coast of India. Included in the agreement is the use of L&T’s Kattupalli facility near Chennai for fabrication and setting up of a local spool base in India and McDermott’s fleet and combination of reel lay and S lay methods for laying of subsea pipelines.
The company said progress continued on the Inpex Ichthys project with the successful completion of the mooring and hookup of the FPSO facility off the western coast of Australia and installation of the flexible risers by the LV 108 (lay vessel).Precommissioning work continues.
The Woodside Greater Western Flank Phase II pipeline project is progressing on schedule, with engineering, procurement, and fabrication currently taking place.
A consortium of McDermott and Baker Hughes, a GE company, was awarded a FEED contract by POSCO Daewoo Corp. for an engineering, procurement, construction, installation, and commissioning tender for Shwe Phase 2, covering new subsea umbilicals, risers, flowlines, and subsea production system facilities and platform brownfield modifications, offshore Myanmar. Engineering work on the FEED competition began in August and is progressing on schedule.
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