McDermott bagged a large offshore subsea contract from PTTEP Sabah Oil Limited (PTTEP) for the Block H gas field expansion project, located offshore Sabah, East Malaysia. The development covers the Alum, Bemban, and Permai deepwater fields, strengthening Malaysia’s position as a key deepwater gas hub.
Comprehensive EPCI Scope
Under the contract, McDermott will deliver engineering, procurement, construction, and installation (EPCI) services for a carbon steel pipeline. The company will also handle the transportation and installation of subsea umbilicals, risers, and flowlines (SURF) components. The subsea infrastructure supplies additional feed gas to the Petronas Floating Liquefied Natural Gas Dua (PFLNG DUA) facility. The facility has produced from the Rotan and Buluh fields in Block H since 2021.
Building on Proven Expertise
“This award reflects PTTEP’s continued trust in McDermott’s expertise to deliver complex subsea infrastructure,” said Mahesh Swaminathan, Senior Vice President, Subsea and Floating Facilities at McDermott.
He added, “Leveraging our proven subsea engineering and marine construction capabilities, we are well-positioned to build on our strong track record with PTTEP. The Block H expansion is pivotal to Malaysia’s energy landscape, and this award reinforces McDermott’s strategic presence, anchored by our Kuala Lumpur office.”
Local Expertise, Global Reach
McDermott’s Subsea and Floating Facilities team in Kuala Lumpur will execute engineering and project management. The company’s versatile marine construction fleet will carry out offshore installation activities. This approach ensures strong integration between local expertise and global subsea capabilities.
A Cornerstone in Malaysia’s Energy Security
The Block H expansion is operated by PTTEP on behalf of Petronas Carigali and PT Pertamina Malaysia Exploration Production. It will play a vital role in boosting Malaysia’s domestic gas supply. The project supports the nation’s long-term energy security and economic growth. It also highlights the importance of international partnerships in advancing deepwater development. As per company press release, McDermott categorizes the award as a “large” contract, valued between USD $50 million and $250 million.
