McDermott International announced a contract from Shell Exploration and Production Company, a subsidiary of Royal Dutch Shell (Shell) plc, for subsea umbilical and flowline installation at the Perdido development, located 230 miles south of Galveston, Texas, in the Gulf of Mexico.
"This award strengthens McDermott's relationship with Shell as we work together to safely and competitively deliver this next-generation deepwater energy project," said Richard Heo, McDermott's Senior Vice President for North, Central and South America. "Our proven track record of project execution in the Gulf of Mexico, industry-leading subsea capabilities and integrated business model will help drive efficiency while maintaining our uncompromising commitment to safety and quality."
The scope of work includes project management of engineering and installation of a flexible flowline from the well to a pipeline end termination; installation of an umbilical; installation of four electrical flying leads (EFLs) and pre-commissioning. Project management and engineering will be performed in Houston, Texas, with offshore installation by McDermott's North Ocean 102 targeted for completion in 2019.
The Perdido development is Shell's pioneering deep water oil and gas project that unlocked a new frontier of energy development in the Gulf of Mexico's Lower Tertiary Paleogene. The Perdido production hub produces oil and gas from the Silvertip, Great White and Tobago fields. Perdido is one of the most prolific oil and gas producing projects in the Gulf of Mexico.
Shell is focused on safely and competitively growing production from Perdido by optimizing the performance of existing wells and through targeted of additional in-field and near-field development opportunities.
The contract award is reflected in McDermott's second quarter 2018 backlog.