McDermott International said that in partnership with Baker Hughes, a GE company, signed a memorandum of understanding with Western Gas Corp for the Equus gas project in Western Australia.
Under the MoU, the companies have been selected as exclusive development partners, and have also been awarded a contract to support the planning phases of the project.
As part of this initial contract, McDermott and BHGE will work with Western Gas to advance the pre-front end engineering design (pre-FEED) and front-end engineering design (FEED) to final investment decision (FID).
McDermott and BHGE’s joint venture, io Oil & Gas Consulting, will provide the pre-FEED support to deliver a development plan, McDermott said in its statement.
Pre-FEED work will commence immediately and is estimated to be complete by the second quarter of 2019. McDermott and BHGE will continue with FEED work thereafter.
Upon FID, McDermott and BHGE are expected to undertake the engineering, procurement, construction, installation and commissioning (EPCIC) of the entire field development scope under a separate contract.
The scope will cover reservoir evaluation, drilling and completions, subsea, production facilities, an export pipeline, an LNG facility and a domestic gas connection facility.
Ian Prescott, McDermott’s senior vice president for Asia Pacific, said, “In close collaboration with BHGE, we are taking a holistic approach to field development from drilling, subsea, production facilities and an export pipeline to an LNG facility and onshore gas connection.”
The Equus gas fields are located about 124 miles (200 kilometers) north-west of the Western Australian town of Onslow. The fields’ water depth ranges from 3,280 feet (1,000 meters) to 3,937 feet (1,200 meters) with an anticipated downstream nearshore LNG facility and pipeline connection to the Western Australian gas market.