Western Gas Names McDermott and BHGE As Exclusive Development Partner and EPCIC Contractor For Equus Gas Project

Wednesday, 12 December 2018

Western Gas (100% owner and Operator) of the Equus Gas Project has signed a Memorandum of Understanding (MOU) with world-leading oil and gas service and technology providers McDermott International, Inc. and Baker Hughes, a GE company (BHGE), for the exclusive provision of project development services from pre-FEED and FEED studies through the engineering, procurement, construction, installation and commissioning (EPCIC) phases of the project.

The agreement is for the provision of drilling, subsea, offshore processing, nearshore LNG production and a gas pipeline to shore for domestic gas supply. McDermott and BHGE were also awarded a contract to support the planning phases of the project and pre-FEED studies will commence immediately. 

Andrew Leibovitch, Executive Director, said that the integrated design-to-install contracting approach was an Australian first for a project of this size and scale and would help deliver an efficient development plan, enhance project economics and reduce time to first gas. 

“We ran a very successful and well-received Request for Proposal process to identify a like minded and collaborative service provider who could engage early and provide an integrated technical and project delivery solution,” Leibovitch said. 

“The collaboration of McDermott and BHGE brings a wealth of global expertise, products and services, and we are delighted to have them on board.” Mr Leibovitch said that Western Gas looks forward to a successful development partnership that would provide a clear line of sight to first gas and help Western Gas to secure binding gas sales agreements and project financing.

Quote attributable to Ian Prescott, Senior Vice President for Asia Pacific, McDermott International, Inc.: “In close collaboration with BHGE, we are taking a holistic approach to field development from drilling, subsea, production facilities and an export pipeline to an LNG facility and onshore gas connection. By more closely connecting each stage of the project, we aim to drive significant efficiencies and cost savings for Western Gas through the full life of the field.” 

Quote attributable to Maria Sferruzza, President for Asia Pacific, BHGE: 
“We are increasingly seeing customers move away from the traditional vendor-supplier mindset and engage in a collaborative approach to project design in order to be more cost effective. This MoU with Western Gas is a great example that brings a flexible partnership model and closer collaboration together to help drive enhanced efficiencies and value over the full field development.”


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