McDermott delivers fast-track upgrades to Kikeh infrastructure offshore Malaysia

Feb. 6, 2025
McDermott has completed transportation, installation and commissioning activity for PTTEP Sabah Oil’s Kikeh subsea gas-lift project offshore Sabah, eastern Malaysia.

McDermott has completed transportation, installation and commissioning activity for PTTEP Sabah Oil’s Kikeh subsea gas-lift project offshore Sabah, eastern Malaysia.

PTTEP Sabah Oil originally awarded McDermott the contract for the Kikeh subsea gas-lift project in March 2024. 

The program, in about 1,400 m of water, called for the replacement of a gas-lift riser; installation of a new dynamic riser section, flowline and two thermoplastic composite pipe jumpers; and upgrades to the subsea production system tied back to the Kikeh FPSO.

McDermott’s Kuala Lumpur team completed the offshore work scope in less than eight months.

The Kikeh field, 75 miles (120 km) northwest of Labuan Island offshore Sabah, came onstream in 2009.

In September 2024, SBM Offshore signed an agreement with MISC Berhad, stating SBM's plans to divest its equity interest in the lease and operating entities of the Kikeh FPSO offshore Malaysia. 

PTTEP investing in UAE

Last month, PTTEP stated in its 2024 performance and 2025 operational plan that it is investing in international expansion. PTTEP acquired a 10% participating interest in the Ghasha Concession Project, one of the largest offshore natural gas fields in the United Arab Emirates, with gas production on track to begin this year.

Moreover, PTTEP obtained government approval in September 2024 for the field development plan of the Abu Dhabi Offshore 2 Project and says FID is scheduled this year.

McDermott's new welding and technology center in Dubai

McDermott, also investing in Dubai, opened a new welding and technology center in late December for research, development and qualification at the Oilfields Supply Center in the Jebel Ali Freezone.

It provides more than 4,100 sq m of office and workshop space and capacity for 250 personnel, and it will offer a full range of welding, pipeline coating, non-destructive testing, equipment management, and production simulation services, alongside R&D initiatives.

In addition, it will provide technical solutions for offshore pipeline projects using vessel simulation capabilities, with a full S-Lay line-up and firing line simulation area, and a J-Lay rotating table for vertical pipelay.

The technology, McDermott added, will enable remote intervention of its pipelay vessel fleet and simulation of environments for training purposes to improve safety and achieve efficiencies.

About the Author

Jeremy Beckman | Editor, Europe

Jeremy Beckman has been Editor Europe, Offshore since 1992. Prior to joining Offshore he was a freelance journalist for eight years, working for a variety of electronics, computing and scientific journals in the UK. He regularly writes news columns on trends and events both in the NW Europe offshore region and globally. He also writes features on developments and technology in exploration and production.

About the Author

Ariana Hurtado | Editor-in-Chief

With more than a decade of copy editing, project management and journalism experience, Ariana Hurtado is a seasoned managing editor born and raised in the energy capital of the world—Houston, Texas. She currently serves as editor-in-chief of Offshore magazine, overseeing the editorial team, its content and the brand's growth from a digital perspective. 

Utilizing her editorial expertise, she manages digital media for the Offshore team. She also helps create and oversee new special industry reports and revolutionizes existing supplements, while also contributing content to Offshore magazine, its newsletters and website as a copy editor and writer. 

Prior to her current role, she served as Offshore's editor and director of special reports from April 2022 to December 2024.

Before joining Offshore, she served as senior managing editor of publications with Hart Energy. Prior to her nearly nine years with Hart, she worked on the copy desk as a news editor at the Houston Chronicle.

She graduated magna cum laude with a bachelor's degree in journalism from the University of Houston.