McDermott International announced today that one of its subsidiaries was awarded an engineering, procurement, construction and installation (“EPCI”) project for Al-Khafji Joint Operations (“KJO”), in the Hout field in water depths up to 31 meters in the Neutral zone between Kuwait and Saudi Arabia.
The EPCI project – awarded to McDermott for an undisclosed sum – comprises more than 600 tonnes of structures including a tripod jacket, deck and flare tower and 42 kilometers of 24-inch subsea pipeline. McDermott will also carry out modifications to a number of existing platforms in the Hout field, through its dedicated brownfield division in Jebel Ali, Dubai.
McDermott’s scope of work includes engineering, with construction from its Jebel Ali fabrication facility and installation using vessels from its global fleet, scheduled to mobilize in the third quarter of 2013.
“McDermott has worked in the Al-Khafji field since the mid 1960’s and we are currently executing the Ratawi Water Injection Project for KJO,” said Stephen M. Johnson, Chairman of the Board, President and CEO of McDermott.
KJO was set up by Aramco Gulf Operations, a subsidiary of state oil firm Saudi Aramco, and Kuwait Gulf Oil Co. The two share the Al Khafji, Lulu, Hout and Dorra fields, which are located in the Neutral Zone between Saudi Arabia and Kuwait.
Kuwait is plugging the gap between supply and demand with imports of liquefied natural gas (LNG) while the world’s largest oil exporter Saudi Arabia has stepped up its exploration for gas after it completed a massive crude expansion programme in 2009.
