Baker Hughes, a GE company (NYSE: BHGE), McDermott International, Inc. (NYSE: MDR) and L&T Hydrocarbon Engineering (LTHE), a subsidiary of Larsen & Toubro (NSE: LT), were awarded the subsea contract for India’s Oil & Natural Gas Corporation’s (ONGC) largest deepwater project, the development of block DWN-98/2 in the Krishna Godavari basin. The project brings together leading subsea equipment and services from BHGE, McDermott and LTHE to provide ONGC with end-to-end project delivery.
The integrated subsea package includes the supply of all subsea production systems (SPS), including 34 deepwater trees, and the installation of subsea umbilicals, risers and flowlines (SURF) at a water depth of between 984 feet (300 meters) and 10,500 feet (3,200 meters).
BHGE will provide all of the subsea hardware as well as pre-commissioning services, and McDermott will bring its specialized fleet of pipelay and construction vessels and engineering, procurement, construction and installation capabilities. By reducing the number of interfaces across the project, the group aims to reduce complexity, drive speed and increase execution efficiency for ONGC.
“Today’s award represents an important milestone in support of ONGC and India’s commitment to help reach its energy potential. Built on a unique successful partnership model with McDermott and LTHE, the project will deliver leading technologies to ONGC across a full subsea scope,” said Neil Saunders, president & CEO, Oilfield Equipment, BHGE. “As the industry moves toward greater collaboration across the value chain, we believe our technology and our unique commercial models are well-positioned to meet demand for future subsea projects.”
“The consortium will provide an integrated solution that not only takes full advantage of the international expertise brought by BHGE and McDermott, but provides a key made-in-India element by LTHE that represents local capabilities as well,” said Ian Prescott, McDermott Senior Vice President for Asia Pacific. “Together, we will deliver the best in class solution to ONGC with cost-efficiency and industry leading safety.”
BHGE’s scope will include subsea hardware including trees, manifolds, controls, connection systems, SPS installation tools and services, as well as flexible risers and flowlines, umbilical and topside controls. BHGE will also provide the pre-commissioning services for additional phases of the project. The project will leverage BHGE’s existing footprint in Kakinada for ongoing services.
McDermott will be responsible for transportation and installation of SURF and SPS facilities using its engineering and other key resources in Kuala Lumpur, Malaysia and Chennai, India as well as its installation assets Derrick Barge 30, Lay Vessel North Ocean 105 and Lay Vessel 108.
The project is one of the first major deepwater developments in India and a milestone for realizing India’s domestic energy potential. The group will offer a comprehensive solution that will also boost local manufacturing, in support of Make in India. Built on an agreement signed in 2016, LTHE and BHGE will fabricate manifolds for the first time in India as part of this project.
The subsea award represents the largest single subsea contract awarded by ONGC. Delivery is scheduled for 2020 for the gas system and 2021 for the oil system.