McDermott lands major FEED contract for Repsol’s Gulf of Mexico fields

McDermott International has won a front-end engineering design (FEED) contract from Repsol Exploración México S.A. for the development of the Polok and Chinwol fields in the Gulf of Mexico. This significant deepwater oil production project, located in Block 29 of the Salina Basin, highlights the continued expansion of Mexico’s oil and gas capabilities, marking a pivotal step in the field’s journey toward production.

Under the agreement, McDermott International will deliver comprehensive FEED services, encompassing engineering, procurement, construction, and installation (EPCI) of subsea umbilicals, risers, and flowlines (SURF). The FEED contract awarded reflects McDermott’s extensive expertise in subsea engineering and its integrated in-house EPCI solutions, solidifying its role as a preferred partner for large-scale offshore developments.

Key milestone for Mexico’s deepwater oil production

The Polok and Chinwol fields were discovered in 2020 as part of a consortium led by Repsol. The Polok-1 exploration well uncovered over 200 metres of net oil pay within Miocene formations, while Chinwol-1 revealed 150 metres of net oil pay in Pliocene formations. Together, these fields hold promising reserves, which could significantly boost Mexico’s deepwater oil production capacity.

Repsol holds a 30% operating interest in the block, alongside partners PC Carigali Mexico Operations, Wintershall Dea, and PTTEP Mexico E&P Limited. These stakeholders are actively working to unlock the block’s full potential through strategic collaborations and technological advancements.

Houston takes the lead in project delivery

The engineering phase of the FEED contract awarded will be managed from McDermott’s Houston office. This location has been strategically selected due to its proximity to Gulf of Mexico operations and McDermott’s established infrastructure. Mahesh Swaminathan, McDermott’s Senior Vice President of Subsea and Floating Facilities, stated that the company’s experience in subsea engineering uniquely positions it to deliver efficient and innovative solutions for the Polok and Chinwol fields. He highlighted McDermott’s commitment to safety, quality, and cost-effective execution throughout the project’s lifecycle.

By leveraging its robust subsea engineering expertise and EPCI capabilities, McDermott aims to help Repsol achieve its production goals while adhering to strict environmental and safety standards. Industry experts suggest that such collaborations underline the growing confidence in Mexico’s energy reform efforts, which aim to attract global investment into the country’s offshore resources.

A boost for Gulf of Mexico energy projects

The Polok and Chinwol development is expected to serve as a model for future projects in the region. The Gulf of Mexico continues to be a critical area for global energy production, with significant untapped potential. Analysts view this FEED contract awarded as a sign of robust activity in the sector, underscoring the importance of partnerships between global energy leaders and technology providers.

For McDermott, this contract adds to its growing portfolio of high-profile offshore projects, reinforcing its reputation as a leader in subsea engineering expertise. For Repsol and its partners, the development represents a strategic opportunity to enhance their footprint in the Gulf of Mexico’s lucrative deepwater reservoirs.