Oil and Gas
2024 Global Sourcebook: Gulf of Mexico Oil Fields Set for Development
Spanish energy giant Repsol awards FEED contract to McDermott International
Efforts are starting to develop the Polok and Chinwol oil fields in the Gulf of Mexico, located 88 km from Mexico's coast.
Map courtesy of Repsol
22.4B
Projected U.S. LNG export capacity in 2030, in cubic ft per day, if the next administration's touted policies are implemented, up from 11.3 billion cu ft per day in 2023. Global gas demand could reach 600 million tons in 2030, with a 140-million-ton supply gap seen by 2035.
Source: Research Firm Rystad Energy
Houston-based contractor McDermott International Ltd. has been awarded a front-end engineering design contract by Repsol Exploración México, a unit of Spain-based energy company Repsol, to develop the Polok and Chinwol oil fields in the Gulf of Mexico.
Under the contract, the value of which was not disclosed, McDermott will provide FEED services for engineering, procurement, construction and installation of subsea compnents that include umbilicals, risers and flowlines.
Polok and Chinwol are located in the Gulf's Block 29. Repsol is set to increase its stake in the oil discovery area, agreeing in September to buy the entire 16.67% stake that had been owned by the Mexican subsidiary of Thailand’s national oil and gas company PTT Exploration and Production.
The purchase, which would boost Repsol's operating interest in the development project from 30% to 46.67%, is set to finalize by year end, said PTT.
The Polok and Chinwol fields were the first deep-water oil discoveries made by Repsol and partners in Mexico in 2020. The Polok-1 exploration well, drilled to a depth of 2,620 m, found more than 200 m of "net oil pay" in two zones, defined as rock thickness that can produce hydrocarbons economically. The Chinwol-1 well was drilled to 1,850 m, with 150 m of net oil pay found. The fields, 12 km apart, are 88 km from the Mexican coast. R
Repsol partners are PC Carigali Mexico (28.33%) and Harbour Energy (25%). Mahesh Swaminathan, McDermott senior vice president of subsea and floating facilities, said it “looks forward to advancing this project.”
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The contractor also announced energy-related contracts elsewhere, including for a decommissioning removal and disposal project for the Harriet Alpha oil platform off Australia's western coast that was awarded in November by Santos, the country's second largest energy developer. It is McDermott's largest to date, Swaminathan said, described as “large” with a value of up to $250 million.
Project management and engineering will be based in Perth.
McDermott also gained an engineering, procurement, construction and installation contract in Qatar for gas infrastructure on the North Field South offshore project, part of an expansion owner Qatar Energy said will help double the country’s total LNG production to 142 million tons per year from the current 77.
Project scope covers more than 155 miles of offshore and onshore gas pipelines connecting five new offshore wellhead platforms with two new onshore LNG trains, McDermott announced. The firm did not note any contract terms.
Italy Engineer Rina Wins CCS Work in Malaysia
Engineering firm Rina has won a pre-front-end engineering and design contract from Malaysian energy giant Petronas for work on carbon capture and storage projects in the country's northern and southern industrial regions.
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Rina said it will be planning supporting infrastructure that includes an onshore terminal, jetty and pipeline in the north and an onshore terminal, offshore pipeline and platform in the south. “These facilities will be crucial in capturing carbon dioxide emissions from industrial sources and securely storing them in offshore geological formations,” said the firm, which did not disclose contract terms.
Rina ranks at No. 63 on ENR's Top 225 International Design Firms list, reporting $163 million in 2023 revenue outside Italy, 55% of its total. Enrico Beccaceci, a company senior manager, said the contract “reinforces Rina’s strategic partnership with Petronas and marks a significant step in our expansion in Southeast Asia.”
Petronas also awarded a pre-FEED work contract to Aker Solutions for two other industrial hubs.
