McDermott has won a subsea contract from Eni Cyprus for the Cronos gas field development offshore Cyprus. It is McDermott's first subsea project award from Eni, and the company says it expands its presence in the Eastern Mediterranean. McDermott classifies the award as substantial, a term it defines as a contract worth between $500 million and $750 million.
Scope of the work
Under the contract, McDermott will provide project management, engineering, procurement and installation support for the Cronos gas field development. The work falls to McDermott's Subsea and Floating Facilities team, which will draw on staff based in Houston, Perth, London and Kuala Lumpur. The company's marine construction fleet will support the installation work.
Contract at a glance
- Contract value: $500 million to $750 million, McDermott's own range for a "substantial" award
- Scope: project management, engineering, procurement and installation
- Team locations: Houston, Perth, London and Kuala Lumpur
Why Eni chose McDermott
Mahesh Swaminathan, McDermott's senior vice president for subsea and floating facilities, said the award reflects the strength of the company's integrated subsea engineering, procurement, construction and installation capabilities. He pointed to "our technical expertise and differentiated deepwater asset, the Amazon" as part of what the company brings to the project. Swaminathan said the company's global execution teams, working with local partners, would help move the Cronos development forward safely and efficiently.
Where this sits in the business
Gas field development sits on the upstream side of the energy business, the exploration and production work that happens before gas reaches a pipeline or plant. The Cronos award gives McDermott a subsea foothold with a new customer in Eni, in a region where the company says it is building out its presence.
