McDermott awarded EPCI subsea tieback contract from PEMEX for Ayatsil pipelines

McDermott to install two rigid flowlines for PEMEX's Ayatsil field in offshore Mexico.

Houston based EPC leader lands sizeable Mexico deal.
Houston based EPC leader lands sizeable Mexico deal.

McDermott International has announced a sizeable contract award potentially worth up to $50mn by PEMEX Exploración y Producción for subsea pipeline flowline installation in support of its Ayatsil field, located 50 miles northwest of Ciudad del Carmen in the Bay of Campeche offshore Mexico.

The scope of work includes design and detailed engineering, procurement, construction and installation (EPCI) of two subsea pipelines. The first line (L1) is a 24 inch diameter, approximately 1.9 miles in length natural gas pipeline that will connect the PP-Ayatsil-C and PP-Ayatsil-A platforms. The second line (L10) is an 8 inch, approximately 0.9 of a mile in length oil pipeline that connects to the PP-Ayatsil-C platform.

"This award follows on the proven track record we have had in Mexico with PEMEX – including the fabrication and installation of the Ayatsil-C platform and the fabrication and future installation of Abkatun," said Richard Heo, McDermott's senior vice president for North, Central and South America. "This opportunity enables us to demonstrate our subsea capabilities in offshore Mexico. We look forward to working closely with PEMEX to successfully delivering this project with safety and quality at the forefront throughout the execution."

McDermott's operating centre in Mexico City will perform project management and engineering. Offshore installation is scheduled to be completed in early 2019.

The lump sum contract award is reflected in McDermott's second quarter 2018 backlog.

Located in the Bay of Campeche, the Ayatsil field is a heavy crude oil field and is PEMEX's largest discovery to date. Water depths in the area are approximately 375-400 feet.


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