McDermott wins major EPCIC contract from PETRONAS Brunei to deliver subsea systems and export pipeline supporting Brunei’s long-term natural gas and LNG supply.
McDermott has announced that it has been selected by PETRONAS Carigali Brunei Ltd. to execute a major subsea contract involving the full engineering, procurement, construction, installation and commissioning (EPCIC) scope for an important natural gas development project offshore Brunei Darussalam. This latest award marks a significant milestone for the region, as the project is considered one of Brunei’s largest and most critical conventional gas developments, aimed at strengthening both domestic energy security and the country’s established liquefied natural gas (LNG) export industry.
The new EPCIC contract was granted after McDermott successfully delivered the front-end engineering design (FEED) phase, as well as conducting engineering optimization efforts and detailed readiness planning. McDermott’s performance during these earlier project phases demonstrated its technical capability and project execution efficiency, which ultimately contributed to PETRONAS Carigali Brunei Ltd.’s decision to entrust the company with the next stage of the development.
Under the terms of the agreement, McDermott will be responsible for delivering a complete subsea production system and the associated supporting infrastructure. This includes the design, fabrication, and installation of umbilicals, risers, and flowlines that will link six subsea wells to a floating production unit positioned offshore. These components will form the backbone of the natural gas extraction and recovery process, enabling a stable and reliable flow of gas from the seabed to the production facility.
In addition to the subsea system, McDermott will also manage the EPCIC scope for a dedicated gas export pipeline. This pipeline will play a vital role in transporting processed gas to Brunei’s LNG infrastructure, ultimately supporting the nation’s long-standing role as a key LNG exporter in the region. By reinforcing the connectivity between offshore production and onshore processing, the project is expected not only to enhance Brunei’s LNG output but also to contribute to long-term energy supply stability.
Commenting on the award, Mahesh Swaminathan, Senior Vice President of McDermott’s Subsea and Floating Facilities division, highlighted the significance of transitioning from the FEED stage to a comprehensive EPCIC contract. He emphasized that this progression reflects McDermott’s strong engineering expertise and its consistent track record of delivering highly complex subsea developments across the Asia-Pacific region. Swaminathan further noted that the contract demonstrates the strong collaborative relationship between McDermott, PETRONAS Carigali Brunei, and their partners, underscoring a shared commitment to safe and efficient project execution.
Project management activities will be anchored at McDermott’s engineering center of excellence in Kuala Lumpur, Malaysia. Teams from other McDermott offices and field locations will also support various aspects of the project, ensuring a coordinated and integrated approach.
Overall, the offshore gas field associated with this project is anticipated to deliver a sustained supply of natural gas. This will support Brunei’s long-term domestic energy requirements while simultaneously reinforcing its LNG export commitments, contributing to the country’s energy stability and economic growth.
