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.