Hess taps McDermott for GoM tieback
McDermott International Inc. has received a contract award from Hess Corp. for subsea tieback work for its deepwater Penn State Deep field in the Gulf of Mexico.
Discovered in 1996, the PSD field is located in the Garden Banks block 216 in about 1,500 ft (457 m) of water. It began production in 1999; the subsalt discovery was tied back to the nearbyBaldpate in Garden Banks 260.
The lump-sum contract will be reflected in McDermott’s 1Q 2017 backlog.
Scott Munro, McDermott’s vice president for Americas, Europe and Africa, said: “This marks our first project with Hess Corporation in recent history and we look forward to providing industry best operational excellence, quality and safety.”
Hess recently announced a 2017 E&P capital and exploratory budget of $2.25 billion, compared to its 2016 actual spend of $1.9 billion. It also earmarked $375 million for production activities in the deepwater Gulf of Mexico, including the drilling and completion of a production well at the Penn State field.