McDermott Secures Major Subsea Contract for Block H Expansion in Malaysia

McDermott Wins Significant Offshore Subsea Contract in Malaysia

In a noteworthy development for the energy sector, McDermott International, a leading engineering and construction firm, has secured a substantial offshore subsea contract from PTTEP Sabah Oil Limited for the expansion of the Block H gas field, located off the coast of Sabah, East Malaysia. This significant project underscores the growing importance of Malaysia's energy landscape and highlights McDermott's continuing role in shaping it.

The Scope of the Project

The awarded contract primarily encompasses engineering, procurement, construction, and installation (EPCI) services. McDermott will focus on delivering a carbon steel pipeline, critical subsea umbilicals, risers, and flowlines (SURF) components. This infrastructure will support the supply of additional feed gas to the Petronas Floating Liquefied Natural Gas Dua (PFLNG DUA) facility, which has already been operational since 2021, processing gas from Block H’s Rotan and Buluh fields.

Mahesh Swaminathan, Senior Vice President at McDermott, expressed confidence in the collaboration with PTTEP, emphasizing McDermott's expertise in complex subsea infrastructure projects. He noted, "This award reflects PTTEP's continued trust in McDermott's capabilities to deliver complex subsea infrastructure. Our proven engineering skills position us well to execute this pivotal project efficiently."

Implications for Malaysia’s Energy Capacity

The Block H development project is a cornerstone of Malaysia’s deepwater gas strategy, aimed at enhancing domestic gas supply. With expansions underway, the initiative is expected to bolster energy security and stimulate economic growth in the region. McDermott’s operational leadership will be based in its Subsea and Floating Facilities division located in Kuala Lumpur, supporting the global delivery of deepwater projects, reaffirming the company’s strategic foothold in Southeast Asia.

This project also becomes a vital link in ensuring a steady gas supply, not only meeting Malaysia’s growing domestic energy demands but also reinforcing its position in regional energy markets. As McDermott leverages its extensive marine construction fleet for offshore installation, the synergy between engineering capabilities and local project execution becomes a centerpiece for success.

McDermott’s Global Impact and Future Outlook

Operating in over 54 countries, McDermott remains committed to offering a technology-driven approach in energy solutions. With a workforce exceeding 30,000 employees and a diversified fleet of marine construction vessels, the company aims to innovate and sustainably manage energy resources worldwide.

As it embarks on this venture in the Block H gas field, McDermott is poised to further its legacy in the energy industry, reinforcing not just its market presence but also shedding light on sustainable practices in engineering and construction.

The ongoing partnerships with PTTEP and the involvement with Petronas and PT Pertamina Malaysia demonstrate a robust collaborative framework aimed at developing essential gas resources. Moving forward, McDermott is optimistic about the project's rollout, staying adaptable to meet the dynamic needs of the energy sector.

In conclusion, the awarding of this substantial contract marks another milestone for McDermott in its commitment to delivering high-quality, innovative solutions that address the evolving challenges in the energy landscape. With the successful execution of the Block H expansion, McDermott not only solidifies its reputation as an industry leader but also contributes to Malaysia's sustained energy future.