McDermott to Build Subsea Pipeline for Malaysia’s Block H Gas Expansion

McDermott has been awarded a contract by PTTEP to deliver a subsea carbon steel pipeline and related infrastructure for Malaysia’s Block H gas expansion, supporting feed gas supply to the Petronas FLNG Dua facility.

(P&GJ) — McDermott has secured an offshore subsea contract from PTTEP Sabah Oil Limited for the Block H gas field expansion offshore Sabah, East Malaysia. The project covers the Alum, Bemban, and Permai deepwater fields.

The scope includes engineering, procurement, construction, and installation (EPCI) of a carbon steel pipeline, as well as subsea umbilicals, risers, and flowlines (SURF). The new infrastructure will deliver additional feed gas to the Petronas Floating Liquefied Natural Gas Dua (PFLNG DUA) facility, which began producing from the Rotan and Buluh fields in 2021.

"This award reflects PTTEP's continued trust in McDermott's expertise to deliver complex subsea infrastructure," said Mahesh Swaminathan, McDermott's Senior Vice President, Subsea and Floating Facilities. "Leveraging our proven subsea engineering and marine construction capabilities, we are well-positioned to build on our strong track record of successful project execution for PTTEP."

Project engineering and management will be led from McDermott’s Kuala Lumpur office, with offshore installation supported by its marine construction fleet.

Block H, operated by PTTEP with partners Petronas Carigali and PT Pertamina Malaysia Exploration Production, is a key component of Malaysia’s deepwater gas strategy. The expansion is expected to increase domestic gas supply and reinforce long-term energy security.

McDermott defines a large contract as between $50 million and $250 million.