McDermott has been awarded a contract from Maersk Oil for engineering, procurement, construction and commissioning (EPCC) services for the Tyra Redevelopment project, located in the Danish sector of the North Sea.
The contract is worth between $500 million and $750 million.
An investment of approximately 21 billion DKK for the redevelopment of the Maersk Oil-operated Tyra gas field was approved at the beginning of December. This will enable Tyra to continue operations for at least 25 years.
Located approximately 139 miles (225 kilometers) west of Esbjerg, Denmark in the North Sea, the Tyra gas field is located in blocks 5504/11 and 12 and is the center of Denmark’s national energy infrastructure, processing 90 percent of the nation’s gas production. First production from the field was achieved in 1984.
McDermott informed on Friday it would provide engineering, procurement and construction for two separate work packages for Maersk Oil under the redevelopment project. With a combined weight of all structures provided by McDermott at nearly 32,000 tons (29,000 metric tons), the scope of work represents one of the largest combined projects for McDermott in the North Sea.
Also on Friday, Maersk Oil awarded an additional contract to Dutch Heerema Marine Contractors for extensive offshore lifting services in the Tyra East and West complexes related to the replacement of the wellhead and riser platform topsides.
Speaking about McDermott’s share of work, Scott Munro, Vice President of Americas, Europe and Africa, said: “By executing our part of the Tyra Redevelopment project from Kuala Lumpur and Batam, the project showcases our vertically integrated One McDermott Way approach to project execution and delivery, which demonstrates our global engineering and fabrication capabilities. This is one of several projects executed in this way.”
McDermott plans to perform project management, engineering and supply chain management from its office in Kuala Lumpur, Malaysia and will fabricate and assemble the structures at its fabrication yard at Batam Island, Indonesia.
Work on the contract is expected to begin early next year and the lump sum contract will be reflected in McDermott’s fourth quarter 2017 backlog. McDermott is scheduled to complete its work packages for sail-away by February 1, 2020 and February 1, 2021.
One McDermott work package consists of Tyra East G platform’s gas processing topside of approximately 18,188 tons (16,500 metric tons) and includes two 328 foot (100 meter) connecting bridges, of 468 and 771 tons (425 and 700 metric tons) respectively, and a 449 foot (137-meter-long) flare.
The other McDermott work package consists of two wellhead topsides for Tyra East B and Tyra East C at 1,763 and 1,366 tons (1,600 and 1,240 metric tons) respectively; a 2,480 ton (2,250 metric ton) riser topside at Tyra East E; two wellhead topsides for Tyra West B and Tyra West C at 1,421 and 1,488 tons (1,290 and 1,350 metric tons) respectively; and a riser topside at 335 tons (304 metric ton) at Tyra West E.
Also included are four connecting bridges ranging from 60 to 1,102 tons (55 to 1,000 metric tons). McDermott will also fabricate six module support frames (MSF) totaling 1,289 tons (1,170 metric tons) to raise the existing platforms 42 feet (13 meters) to account for seabed subsidence. The existing four wellheads and two riser topsides along with the old bridges will be removed by others while retaining the original jackets to accept the new topsides with their MSFs.
McDermott is currently working on a merger with CB&I in an all-stock transaction to create an integrated onshore-offshore company, with a broad engineering, procurement, construction and installation service offering.