PTTEP lets offshore Sabah expansion contract

McDermott will deliver engineering, procurement, construction, and installation (EPCI) services for a carbon steel pipeline, along with transportation and installation of key subsea umbilicals, risers, and flowlines (SURF) components.

Sept. 9, 2025

PTTEP Sabah Oil Ltd. (PTTEP) has let a offshore subsea contract to McDermott for the Block H gas field expansion project, offshore Sabah in East Malaysia.

The contract, valued by the service company at $50-250 million, covers Alum, Bemban, and Permai deepwater fields. McDermott will deliver engineering, procurement, construction, and installation (EPCI) services for a carbon steel pipeline, along with transportation and installation of key subsea umbilicals, risers, and flowlines (SURF) components.

The infrastructure is part of a broader system to deliver additional feed gas to the Petronas Floating Liquefied Natural Gas Dua (PFLNG DUA) vessel which has been producing from Block H's Rotan and Buluh fields since 2021.

PTTEP is operator at Block H with partners Petronas Carigali and PT Pertamina Malaysia Exploration Production.