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McDermott confirms Petrobras EPCI contract

Nov 21, 2018
2 min read
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McDermott International said it was awarded a contract by Petrobras for a natural gas pipeline project to support offshore Brazil's Santos basin pre-salt field program.

The EPCI contractor valued the project award between US$50 and US$250 million, according to a company statement.

The contract covers the implementation of the ultra-shallow segment of the new Rota 3 gas export pipeline. The scope of work includes design and detailed engineering, procurement, construction and installation of six miles (10 kilometers) of a 24-inch rigid concrete coated pipeline from the already installed shallow water segment of this new pipeline system to the shore, including a horizontal directional drill, tie-in spools and pre-commissioning of the six mile (10 kilometers) pipeline.

Overall project management and engineering will be performed by McDermott’s team in Rio de Janeiro, with support from the Houston team.

“Rota 3 is a major pre-salt development area that is important to the future of oil and gas production for Brazil,” said Richard Heo, McDermott’s Senior Vice President for North, Central and South America.

“McDermott has the local and global expertise, capabilities and assets to support operations in pre-salt environments – particularly with the delivery of our previously announced J-Lay configuration modification to our Amazon vessel. Our office in Rio will execute this near-term project utilizing expertise they have previously demonstrated in a series of recent EPCI projects successfully completed in-country for Petrobras and other operators.”

Rota 3 is a 220 mile (355-kilometer) rigid pipeline project by Petrobras that is part of the company’s Santos Basin pre-salt gas offloading and transportation system. The project is split into three subsea segments and one onshore segment. McDermott has been awarded the third subsea segment: an ultra-shallow pipelay connecting the shallow segment to the onshore segment at Maricá City, 62 miles (100 kilometers) north of Rio de Janeiro.

The lump sum contract award will be reflected in McDermott’s fourth quarter 2018 backlog.

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