McDermott and PTSC consortium lands $1bn contract offshore Vietnam

A consortium comprised of McDermott and Petrovietnam Technical Services Corporation (PTSC) has secured a limited letter of award from Phu Quoc Petroleum Operating Company for Vietnam’s multibillion-dollar Block B gas-to-power project.

Under the full project scope, the consortium will provide engineering, procurement, construction, installation (EPCI), and hook-up and commissioning services for a central production platform, living quarters platform, flare tower, and bridges for the Block B gas development project off the southwest coast of Vietnam.

“This award combines our 50 years of experience executing complex EPCI projects in the region with PTSC’s technical strengths,” said Mahesh Swaminathan, McDermott’s senior vice president of subsea and floating Facilities. “Together, we will initiate this important groundwork as we finalise the full project scope and ultimately deliver another world-class project for Vietnam.”

The full project contract is expected to be executed between the parties in early 2024 with an award value of more than $1bn.

Block B, located in the Malay-Thổ Chu basin, is one of Vietnam’s most significant natural gas exploitation sites. The project was first announced in 2016 but faced several delays. Petrovietnam, the parent of Phu Quoc Petroleum estimated a total investment of $10bn. The project is currently in approval stage with a final investment decision expected in late 2023 or early 2024. Commercial production could start in 2027.

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