McDermott, BHGE win Shwe Phase 2 EPCIC contract

June 27, 2018
POSCO Daewoo Corp. has contracted McDermott and Baker Hughes, a GE company for phase two of the Shwe gas field development offshore western Myanmar.

Offshore staff

HOUSTON– POSCO Daewoo Corp. has contracted McDermott and consortium partner Baker Hughes, a GE company (BHGE) for phase two of the Shwe gas field development offshore western Myanmar.

The McDermott-led consortium took part in a front-end engineering and design (FEED) competition in 2017. The successful execution of the FEED followed by the engineering, procurement, construction, installation, and commissioning (EPCIC) tender led to the award of this project.

The EPCIC scope covers subsea umbilicals, risers and flowlines (SURF) and subsea production systems (SPS) for an eight-well development at water depths between 279 ft (85 m) and 466 ft (142 m). It also covers brownfield modifications to tieback the new subsea facilities to the existing Shwe platform.

McDermott will undertake the EPCIC of SURF and brownfield modification scopes, using its regional center of excellence for project management and engineering in Kuala Lumpur, Malaysia. The SURF structures and production manifolds will be fabricated in the Asia/Pacific region.

BHGE will supply the SPS scope, including eight medium-water horizontal xmas trees (MHXT), eight subsea production control systems and distribution equipment, and topsides controls.

McDermott also will execute the installation and commissioning phase, with field service engineering and tooling support from BHGE’s base in Singapore. Installation of SURF and SPS components will be carried out using McDermott’s pipelay assets, including theDerrick Lay Vessel 2000.

The contract’s final delivery is scheduled for 2022.

TheShwe field development consists of the Shwe, Shwe Phyu, and Mya gas fields, located in blocks A-1 and A-3 of the Bay of Bengal.

The project is being developed by a consortium of five companies, POSCO Daewoo Corp. (operator), Myanma Oil and Gas Enterprise, Oil and Natural Gas Corp. Videsh Ltd., Gas Authority of India, and Korea Gas Corp.

Graham Gillies, Vice President-Subsea Production Systems & Services at BHGE, said: “… This win demonstrates the value the consortium can create through early engagement with customers, adoption of standardized technology solutions and efficiency of project execution.”


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