McDermott International Inc. (NYSE: MDR) said August 7 it has been awarded a contract from Shell Exploration and Production Co. Inc., a subsidiary of Royal Dutch Shell Plc, for subsea umbilical and flowline installation at the Perdido development, located 230 m (370 km) south of Galveston, Texas, in the Gulf of Mexico.

“This award strengthens McDermott’s relationship with Shell as we work together to safely and competitively deliver this next-generation deepwater energy project,” Richard Heo, McDermott’s senior vice president for North, Central and South America, said.

The scope of work includes project management of engineering and installation of a flexible flowline from the well to a pipeline end termination; installation of an umbilical; installation of four electrical flying leads and pre-commissioning. Project management and engineering will be performed in Houston, Texas, with offshore installation by McDermott’s North Ocean 102 targeted for completion in 2019.

The Perdido development is Shell’s pioneering deepwater oil and gas project that unlocked a new frontier of energy development in the Gulf of Mexico’s Lower Tertiary Paleogene. The Perdido production hub produces oil and gas from the Silvertip, Great White and Tobago fields. Shell is focused on safely and competitively growing production from Perdido by optimizing the performance of existing wells and through targeted of additional in-field and near-field development opportunities.

The contract award is reflected in McDermott’s second-quarter 2018 backlog.