Royal Dutch Shell (NYSE: RDS.A) subsidiary Shell Exploration and Production Co. has selected McDermott International Inc. (NYSE: MDR) for new subsea umbilical and flowline installation at the Great White Frio development in the U.S. Gulf of Mexico's Alaminos Canyon Block 857, according to a news release.
The contract is valued at between US$1 million and $50 million.
McDermott said its scope of work includes project management and engineering; installation of a flexible flowline from the well to a pipeline end termination; installation of one 2,000-foot-long steel flying lead; and installation of two electrical flying leads in a water depth of 8,000 ft. Project management and engineering are scheduled to be performed in Houston with offshore installation by McDermott targeted for completion in mid-2019.
The Shell Offshore-operated Great White development was described in the release by McDermott as a “pioneer deepwater oil and gas project that has unlocked a new frontier of energy development in the Gulf of Mexico’s Lower Tertiary Paleogene.” The Perdido regional host production hub processes oil and gas from Great White along with the Silvertip and Tobago fields.
McDermott said the contract award will be reflected in its fourth-quarter 2018 backlog.
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