Pipelines/flowlines/risers

McDermott Nets Subsea Tieback Contract for Pemex's Ayatsil Field

The deal covers the installation of a pair of rigid flowlines for the shallow heavy oil field, Pemex’s largest discovery to date. Work is expected to be completed early next year.

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McDermott

Pemex has awarded another contract to McDermott International for work in the Bay of Campeche, agreeing to a deal for subsea pipeline flowline installation in support of its Ayatsil field, located 50 mi northwest of Ciudad del Carmen.

The scope of work includes design and detailed engineering, procurement, construction, and installation of two subsea pipelines. The first pipeline will connect the PP-Ayatsil-C and PP-Ayatsil-A platforms. It is a natural gas line approximately 1.9 mi long with a 24-in. diameter. The second line, which will connect to the PP-Ayatsil-C platform, is 8-in. in diameter and approximately 0.9 mi in length.

“This opportunity enables us to demonstrate our subsea capabilities in offshore Mexico,” Richard Heo, McDermott’s senior vice president for North, Central, and South America, said in a statement. “We look forward to working closely with PEMEX to successfully deliver this project with safety and quality at the forefront throughout the execution.”

The Ayatsil field is a heavy crude oil field in approximately 375- to 400-ft water depth. It is PEMEX’s largest discovery to date. McDermott’s operating center in Mexico City will perform project management and engineering, with offshore installation scheduled to be completed in early 2019.

Financial terms of the contract were not disclosed, but McDermott said in a statement that the contract award was “sizeable.” The company defines “sizeable” as between $1 million and $50 million.

McDermott has done extensive work with Pemex on Ayatsil in the past. Previously, it completed the Ayatsil-B drilling platform. It also completed installation of the Ayatsil-A offshore jacket, deck and piles, plus a replacement jacket and related deck installation for Ayatsil-C.