Wedoany.com Report-Sept. 14, McDermott, a U.S.-based offshore engineering and construction company, has secured a subsea contract with PTTEP Sabah Oil Limited (PTTEP) for a gas field expansion project offshore Malaysia. The project covers the Alum, Bemban, and Permai deepwater fields within Block H, offshore Sabah in East Malaysia. Under the agreement, McDermott will provide engineering, procurement, construction, and installation (EPCI) services for a carbon steel pipeline, along with transportation and installation of key subsea umbilicals, risers, and flowlines (SURF) components.

Block H is operated by PTTEP on behalf of partners Petronas Carigali and PT Pertamina Malaysia Exploration Production. The new infrastructure is designed to support additional feed gas delivery to the Petronas Floating Liquefied Natural Gas Dua (PFLNG DUA) facility, which has been producing from Block H’s Rotan and Buluh fields since 2021. The contract, classified as large, is valued between $50 million and $250 million.

Mahesh Swaminathan, McDermott’s Senior Vice President for Subsea and Floating Facilities, said: “This award reflects PTTEP’s continued trust in McDermott’s expertise to deliver complex subsea infrastructure. The expansion of Block H represents a pivotal development in Malaysia’s energy landscape, and our work on this project further reinforces McDermott’s strategic presence, anchored by our Kuala Lumpur office – our hub for global deepwater project delivery.”

Engineering and project management for the project will be led from McDermott’s Subsea and Floating Facilities team in Kuala Lumpur. The company emphasizes that this approach will leverage local expertise while maintaining global standards for deepwater project execution.

Earlier in 2025, McDermott completed offshore installation and commissioning activities for another deepwater project offshore East Malaysia for PTTEP, demonstrating the company’s experience in operating in challenging subsea environments, including depths of approximately 1,400 meters.

The Block H expansion is expected to enhance Malaysia’s gas production capacity and contribute to the operational efficiency of the PFLNG DUA facility, ensuring reliable supply for regional and international markets. By executing complex subsea works and integrating new pipelines with existing infrastructure, McDermott aims to support safe, efficient, and sustainable operations.

This contract highlights McDermott’s continued focus on deepwater engineering and strategic partnerships in Southeast Asia, building on its established presence in Malaysia and reinforcing its capability to deliver high-value offshore energy projects.

With Block H, the combined efforts of PTTEP, its partners, and McDermott will strengthen Malaysia’s position in the global LNG supply chain while expanding local employment and technical expertise in offshore engineering.