McDermott Successfully Completes Deepwater Oil Project in the Gulf of America

U.S. offshore engineering and construction player McDermott has crossed the finish line at a deepwater oil project in the U.S. Gulf of Mexico, recently renamed to the Gulf of America by the Trump administration. This hydrocarbon asset is operated by Shell Offshore, a subsidiary of the UK-headquartered energy giant Shell.

While confirming “the safe and successful” completion of engineering, procurement, construction, installation, and commissioning (EPCIC) activities in the U.S. Gulf for Shell, McDermott highlighted that its work enabled the energy heavyweight to begin oil production at its Whale deepwater development in the Perdido Corridor, for which a final investment decision was made in July 2021, following the initial hydrocarbon discovery in 2017.

Key Achievements at the Whale Deepwater Development

The start-up of production at the Whale development, owned by Shell Offshore (60%, operator) and Chevron (40%), came more than seven years after the discovery. The construction of the Whale floating production unit (FPU) was handled by Seatrium, with the fabrication and integration of the FPU topsides, living quarters, and hull. The completed FPU was delivered in October 2023, with the integration of its topside and hull enabled by the Goliath twin cranes.

McDermott’s Role in the Project

McDermott won a deal for the project in 2021 and completed it last month, leveraging marine assets such as the North Ocean 102 vessel and the newly upgraded Amazon. The firm executed complex pipelay operations, reaching water depths of nearly 2,800 meters, installing approximately 50 kilometers of pipeline and 15 kilometers of umbilicals to connect five subsea drill centers to the Whale FPU.

Impressive Vessel Capabilities

Amazon delivered an advanced ultra-deepwater pipelay system, installing five 3,350 meters-long steel catenary risers in a Gulf of Mexico first, showcasing the vessel’s high top tension capacity and marking a significant milestone for subsea infrastructure projects.

Environmental Advancements and Sustainable Energy Production

The Whale development features a semi-submersible production platform with remote operations and monitoring capabilities, representing a significant advancement in sustainable, high-efficiency energy production. Shell claims that the Whale project sports energy-efficient gas turbines and compression systems, with 30% lower greenhouse gas intensity over its life cycle than Vito in the greater Mars Corridor.

Future Prospects

With an estimated peak production of 100,000 barrels of oil equivalent per day and an estimated recoverable resource volume of 480 million boe, the Whale platform enhances Shell’s Gulf of Mexico portfolio. The field’s semi-submersible production host is situated in more than 8,600 feet of water with 15 wells to be tied back to the host via subsea infrastructure.

Recent Developments

Shell’s acquisition of ConocoPhillips’ interests in the Ursa and Europa assets, while McDermott expands its contract backlog with projects offshore Malaysia and a front-end engineering design assignment with Repsol, signify ongoing growth and collaboration in the energy sector.