McDermott International announced today that it has received a large contract amendment from Al-Khafji Joint Operations (KJO) for an offshore platform in the Hout field.
The field is located in the Neutral Zone between Saudi Arabia and Kuwait, some 26 miles east of Al-Khafji on the Saudi-Kuwait border and is operated by KJO, a company jointly owned by Saudi Aramco and Kuwait Oil Company.
McDermott has scheduled work on the brownfield project for its Q1, 2015 backlog, with an estimated completion period Q2, 2017.
The contract amendment is an addition to the initial scope for KJO’s Hout project awarded to McDermott in March 2012 that was reportedly worth around $240mn.
The original scope was for engineering, procurement, construction and installation (EPCI) for structures including a tripod jacket, deck and flare tower and some 26 miles of 24-inch subsea pipeline.
McDermott was also to carry out modifications to a number of existing platforms in the Hout field through its brownfield division in Jebel Ali, UAE.
“This award is a customer relationship success story,” said Tom Mackie, McDermott’s vice president, Middle East. “We have always strived to deliver the best production solution to KJO and today’s award demonstrates continued confidence in McDermott’s capabilities.
“McDermott wins on our ability to deliver a differentiated, full scope EPCI solution for brownfield or greenfield projects to enhance the safety, operability and maintainability of our customer’s facilities. These unique capabilities set us apart for the large contract amendment at KJO’s Hout brownfield production facility.”
The scope of the amended contract includes EPCI for one new platform and two bridges with a total weight of approximately 3,300 tonnes, including significant modifications at the existing complex.
Engineering is to be carried out by McDermott’s engineering teams, while structures are scheduled for fabrication at the company’s Dubai-based facility.
The installation work will be undertaken by vessels from McDermott’s global fleet, the company said.
