How McDermott beat the clock on Kikeh subsea project in East Malaysia

McDermott International has successfully completed the Kikeh subsea project offshore East Malaysia ahead of schedule, marking a significant milestone in the company’s track record for delivering complex deepwater projects with precision and efficiency. Awarded by PTTEP Sabah Oil Limited (PTTEP) in the first quarter of 2024, the project involved comprehensive offshore transportation, installation, and commissioning activities critical to maintaining the long-term productivity of the Kikeh field.

This achievement not only highlights McDermott’s capability in executing large-scale offshore projects under tight deadlines but also underscores its commitment to operational excellence and safety in challenging deepwater environments. The project was completed in less than eight months—an impressive feat given the complex nature of deepwater operations and the technical demands of subsea infrastructure upgrades.

How did McDermott achieve early completion of the Kikeh subsea project?

The Kikeh subsea project was executed by McDermott’s Kuala Lumpur-based team, who managed operations in water depths of approximately 1,400 meters. The scope of work included the removal of an existing gas lift riser, the installation of a new dynamic riser section, a new flowline, and two thermoplastic composite pipe jumpers. Despite the inherent challenges of working in deepwater conditions, the project was delivered ahead of schedule through meticulous planning, robust engineering, and efficient resource management.

Key to the project’s success was McDermott’s focus on stringent safety protocols and readiness planning. The company’s engineering and procurement teams worked collaboratively to ensure seamless vessel mobilization, while advanced project management techniques helped mitigate risks and streamline workflows. These strategies not only improved operational efficiency but also ensured the safety of all personnel involved in the offshore operations.

Mahesh Swaminathan, Senior Vice President of Subsea and Floating Facilities at McDermott, attributed the early completion to the company’s expertise in deepwater field development. According to Swaminathan, this achievement reflects McDermott’s ability to deliver complex offshore projects safely and efficiently, reinforcing its position as a leader in the global energy sector.

What is the significance of the Kikeh field in Malaysia’s offshore energy landscape?

Located approximately 75 miles (120 kilometers) northwest of Labuan Island, offshore Sabah, the Kikeh field is one of Malaysia’s most significant deepwater developments. Since coming onstream in 2009, it has played a vital role in the country’s offshore oil and gas production. Operated by PTTEP on behalf of its partners—Petronas Carigali and PT Pertamina Malaysia Exploration Production—the Kikeh field is tied to the Kikeh floating production storage and offloading (FPSO) vessel, the first and largest deepwater FPSO in Malaysia.

The recent upgrades completed by McDermott are crucial for maintaining the efficiency and reliability of the Kikeh subsea production system. These enhancements support the continuous delivery of gas to the FPSO, ensuring the field’s long-term productivity. The project’s success also reflects Malaysia’s growing expertise in managing complex offshore developments, reinforcing the country’s strategic importance in the global energy market.

McDermott’s involvement in the Kikeh field is not new. The company previously executed subsea infrastructure installations in the field between 2011 and 2012, as well as in the nearby Siakap North-Petai field in 2014. This long-standing relationship with PTTEP and other regional stakeholders highlights McDermott’s deep understanding of Malaysia’s offshore energy landscape.

How does McDermott’s Kuala Lumpur office support regional offshore projects?

McDermott’s Kuala Lumpur office serves as a strategic hub for its Subsea and Floating Facilities division. This regional center manages project execution, engineering design, and offshore operations across Southeast Asia, playing a pivotal role in McDermott’s global operations. The office also houses an engineering center of excellence, where innovative technologies and best practices are developed to support complex projects like the Kikeh subsea project.

The company’s strong presence in Malaysia allows it to leverage local expertise and resources, fostering collaboration with regional partners and stakeholders. This approach not only enhances project efficiency but also supports the development of local talent in the offshore energy sector. McDermott’s commitment to building local capabilities is a key factor in its ability to deliver projects ahead of schedule while maintaining the highest safety and quality standards.

Swaminathan emphasized that McDermott’s success in projects like the Kikeh subsea project is a result of its integrated project management model, which combines global expertise with local insights. This model enables the company to adapt to the unique challenges of each project while ensuring consistent performance and delivery.

What does the future hold for McDermott in Southeast Asia’s offshore sector?

The successful completion of the Kikeh subsea project positions McDermott as a preferred partner for future offshore developments in Southeast Asia. The company’s proven track record in deepwater field development, combined with its expertise in offshore transportation and subsea installations, makes it well-equipped to support the region’s growing energy demands.

As Southeast Asia continues to invest in offshore energy infrastructure, McDermott’s ability to deliver complex projects safely, efficiently, and ahead of schedule will be a critical asset. The company’s focus on innovation, sustainability, and local partnerships will also play a key role in driving future growth in the region’s offshore sector.