McDermott has secured an offshore subsea contract from Sabah Oil Limited for the Block H gas field expansion offshore Sabah, East Malaysia. The scope includes engineering, procurement, construction, and installation of a carbon steel pipeline, as well as subsea umbilicals, risers, and flowlines.
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.
The deal, valued between $50 million and $250 million, tasks McDermott with engineering, procurement, construction, and installation (EPCI) services for a new carbon steel pipeline and other crucial subsea infrastructure.
Mahesh Swaminathan, McDermott’s Senior Vice President, Subsea and Floating Facilities, emphasized the company’s strategic presence in the region, noting that the award “reflects PTTEP’s continued trust in McDermott’s expertise to deliver complex subsea infrastructure.”
He added that the Block H expansion is a “pivotal development in Malaysia’s energy landscape.”
Engineering and project management for the project will be managed by McDermott’s Subsea and Floating Facilities team based in Kuala Lumpur, Malaysia.
This recent contract builds on a previous project McDermott completed for PTTEP in East Malaysia earlier this year, involving deepwater work at depths of approximately 1,400 meters.