McDermott International and Daewoo Engineering and Construction have reportedly signed contracts to build facilities to recover gas from Hout oil field, according to industry sources.
Hout is one of the joint oil fields shared by Saudi Arabia and Kuwait.
Under the contracts, McDermott and Daewoo are to build offshore gas gathering facilities, a subsea pipeline to carry 48 million cubic feet of gas per day and associated onshore gas facilities.
Al-Khafji Joint Operations Co (KJO), a partnership between Saudi Aramco and Kuwait Petroleum Corp. (KPC), signed the contracts a couple of weeks ago, Reuters reported an industry source as saying.
In a statement, McDermott confirmed that it was awarded an engineering, procurement, construction and installation (EPCI) project for KJO, in the Hout field.
The EPCI project comprises more than 600 tonnes of structures including a tripod jacket, deck and flare tower and 42 km 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.
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 mobilise in the third quarter of 2013.
One of the sources reportedly added that the contracts for onshore and offshore work in the Neutral Zone between both countries are worth around US$240mn in total.
