U.S. engineering firm McDermott International has secured a significant offshore subsea contract with PTTEP Sabah Oil Limited for a major gas field expansion project in East Malaysia. 

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.

Announced on Tuesday, September 9, the project is part of the Block H gas field expansion, which includes the Alum, Bemban, and Permai deepwater fields located offshore Sabah. 

The new pipeline and associated subsea umbilicals, risers, and flowlines (SURF) components are designed to transport additional natural gas to the Petronas Floating Liquefied Natural Gas Dua (PFLNG DUA) facility, which has been in operation since 2021, processing gas from the Block H’s Rotan and Buluh fields.

McDermott's work will support the expansion efforts led by PTTEP, which operates the Block H development in partnership with Petronas Carigali and PT Pertamina Malaysia Exploration Production.

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.