McDermott Lands Hibiscus Gas Field FEED Contract from BG Trinidad & Tobago

McDermott International, Inc., announced today that one of its subsidiaries has been awarded full engineering, procurement, construction and installation (EPCI) of a 750-ton compressor module for BG Trinidad & Tobago’s Hibiscus field development offshore Trinidad.

The contract is valued at more than US$50 million and will be included in McDermott’s second-quarter 2011 bookings.

“We are pleased to be working for the BG Group again to deliver this full scope compressor module for the Hibiscus gas field, which will enable BG to increase gas supply to its Atlantic LNG trains,” said Stephen M. Johnson, McDermott’s Chairman, President and Chief Executive Officer. “Where we add value to this field development is by providing the full range of engineering and construction services and managing the project interfaces in house.”

Detailed engineering design of the compression module will be carried out by McDermott’s Houston-based engineering office along with procurement for the module equipment and some specialty items. McDermott’s Morgan City fabrication facility will handle procurement of bulk items and construct the module on site in Louisiana.

Engineering commenced in the first quarter of 2011 and fabrication is due to begin by the first quarter of 2012 – with loadout and transportation scheduled for the first quarter of 2013.

McDermott’s heavy lift vessel DB50 will set the compressor module at the installation site on the existing Hibiscus platform, in a water depth of 500 feet, before performing the compressor module tie-in, hook-up and commissioning on site. The field lies 28 miles off the north coast of Trinidad.

The Hibiscus field is part of BG T&T’s North Coast Marine Area development to supply gas to trains 2, 3, and 4 of Atlantic LNG in Point Fortin, South Trinidad.

More about Derrick Barge 50

McDermott is upgrading derrick / pipelay barge, DB50 for deepwater projects, to significantly increase the station-keeping capability of the vessel by adding new thrusters and increasing its electrical power supply.

The DB50 will have a new diesel-engine generator set totaling 19.2 megawatts, new switchboards and a state-of-the-art power management/alarm system. Six new 2.4 megawatt fixed pitch / variable AC drive thrusters, will be installed to provide 44 tons of thrust each. In addition, the freshwater and saltwater cooling system and the supply/exhaust ventilation system will be upgraded in both engine and thruster machinery spaces. DB50 is capable of lifting loads up to 4,400 tons, and laying pipe through Reel-Lay and J-Lay up to 20 inches in diameter, in more than 9,000 feet of water.

ABOUT McDERMOTT

McDermott is a leading engineering, procurement, construction and installation (“EPCI”) company focused on executing complex offshore oil and gas projects worldwide. Providing fully integrated EPCI services for upstream field developments, the Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning. McDermott’s customers include national and major energy companies. Operating in more than 20 countries across the Atlantic, Middle East and Asia Pacific, the Company’s integrated resources include more than 15,000 employees and a diversified fleet of marine vessels, fabrication facilities and engineering offices. McDermott has served the energy industry since 1923.

Source: McDermott, June 6, 2011;

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