PTTEP Sabah Oil Ltd. has let an offshore transportation, installation and commissioning contract to McDermott for the Kikeh subsea gas lift project, 75 miles (120 km) northwest of the island of Labuan, offshore Sabah in East Malaysia.
McDermott values the contract at $1-50 million.
Under the scope of the contract, McDermott will remove the existing flexible gas lift riser and perform the installation and commissioning of a new dynamic riser section and flowline comprised of two thermoplastic composite pipe jumpers. This will enable gas delivery to a subsea production system tied back to the Kikeh floating production, storage and offloading (FPSO) vessel, the service provider said in a release Mar. 27.
McDermott previously performed the installation of subsea infrastructure in Kikeh field between 2011 and 2012, and again in 2014, in the nearby Siakap North-Petai field, said Mahesh Swaminathan, McDermott's senior vice-president, subsea and floating facilities.
Project management and engineering will be executed from Kuala Lumpur, Malaysia, with support from other McDermott offices.
Operated by PTTEP (56%) on behalf of partner Petronas Carigali (20%) and PT Pertamina Malaysia Exploration Production (24%), Kikeh oil field has been producing from the existing Kikeh FPSO since 2007 (OGJ Online, Aug. 7, 2007). The Kikeh FPSO is the first and largest deepwater FPSO in Malaysia.