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McDermott wins Saudi Aramco's $4.5bn Marjan EPCI contracts

American contractor to work with China's COOEC on Package 1 and independently on Package 4 of Saudi Arabian megaproject

Saudi Aramco is developing Marjan.
Twitter / Aramco / Representational
Saudi Aramco is developing Marjan.

American contracting heavyweight McDermott has won two engineering, procurement, construction, and installation (EPCI) contracts with a combined value of $4.5bn (SAR16.8bn) from oil and gas giant Saudi Aramco for Packages 1 and 4 of its Marjan Increment Development, a megaproject located in the Arabian Gulf, off Saudi Arabia's East Coast, that will increase production from 500,000 barrels per day of oil to 800,000 bpd.

The packages will see McDermott drawing on its engineering teams from across the UAE, India, China, and Indonesia to deliver the contracts, which mark new records for both Saudi Aramco and the Marjan scheme. 

MARJAN PACKAGE 1

Mcdermott will work in a consortium with China Offshore Oil Engineering Company (COOEC) to deliver EPCI works for Phase 1's gas-oil separation plant (GOSP) under a contract exceeding $3bn (SAR11.2bn).

The award represents the single largest EPCI offshore contract awarded by Aramco to date. 

Package 1 includes the delivery of project management, engineering, global procurement, fabrication, field operations, and marine knowledge services by McDermott.

COOEC will provide fabrication support and marine vessels as part of the consortium. 

The Package 1 GOSP separation platform is located offshore in the eastern flank of the Arabian Gulf and functions as the operational centre of the Marjan increment project. 

The contract includes the fabrication of more than 149,686 tonnes (t) of items, including six major topside platforms and jackets, 12 bridges, and six bridge support platforms and jackets.

Also planned for development are 91cm oil export truck lines spanning 70km, and more than 90km of 230kV composite subsea cables.

McDermott's project management and engineering teams for Package 1 will be located in its Asia-Pacific headquarters in Kuala Lumpur, Malaysia, in close proximity to its Batam Island fabrication facility in Indonesia and the COOEC facility in China.

MARJAN PACKAGE 4

The second EPCI contract was awarded for Package 4 and is valued at $1.5bn (SAR5.6bn), through which McDermott will work on offshore gas facilities and pipelines.

Marjan Package 4 represents the second largest EPCI offshore contract awarded by Saudi Aramco in the Marjan Increment Development Project.

The contract includes the fabrication of three tie-in platforms and seven wellhead platforms with a total weight of 55,700 t.

McDermott's scope includes the installation of subsea trunk lines and in-field pipelines in excess of 540km, and the laying of more than 90km of subsea cables.

Project management for Package 4 will be based out of Dubai, with engineering support from McDermott offices in Al Khobar, Saudi Arabia, and Chennai, India.

Fabrication will take place at McDermott's Batam, Jebel Ali, and Dammam yards.

The engineering and fabrication phase for Packages 1 and 4 is scheduled to begin in Q3 2019 and Q1 2020 and the projects will be completed in Q4 2022.

Senior vice president for McDermott's Mena operation, Linh Austin, said: “The award of Marjan Package 4, in addition to Marjan Package 1, is evidence of Aramco's confidence in McDermott's ability to deliver on a project of this scale."

Commenting on Package 1's contract, he added: "This award signifies Aramco's confidence in McDermott's project management expertise and ability to meet the interface, logistics, and coordination challenges that an EPCI project of this vast scale represents."

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