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McDermott International has just secured a significant engineering, procurement, construction, installation, and commissioning (EPCIC) contract for a new offshore gas development project in Brunei, awarded by Petronas Carigali Brunei.
The contract encompasses the delivery of a complete subsea production system, including umbilicals, risers, and flowlines, linking six offshore wells to a floating production unit for natural gas extraction. Additionally, McDermott will manage the construction of a gas export pipeline to feed Brunei’s liquefied natural gas (LNG) facilities.
This award follows McDermott’s completion of front-end engineering design (FEED), optimization studies, and readiness planning for the project. The company highlighted that the contract demonstrates its capability to manage complex subsea systems while maintaining safety and engineering excellence.
The project for which McDermott International recently secured a major EPCIC contract with PETRONAS Carigali Brunei Ltd. represents one of Brunei Darussalam’s most significant conventional natural gas developments in recent years.
Front-End Engineering Design (FEED) Completed:
McDermott’s contract follows the successful completion of Front-End Engineering Design (FEED), engineering optimization, and project readiness planning. This early engineering work enabled a smooth transition to full EPCIC execution.
Subsea Production System:
The core focus of the project is a subsea production system comprising umbilicals, risers, and flowlines that will interconnect six subsea wells with a floating production unit (FPU) to facilitate offshore gas extraction.
Floating Production Unit (FPU):
A separate but closely linked contract has been awarded to MISC Berhad for the lease, operation, and maintenance of a new Floating Production Unit, which will process recovered gas offshore. This unit will form the heart of the production hub and is expected to play a central role in gas handling until gas export.
Gas Export Pipeline:
McDermott’s EPCIC scope also includes delivery of a gas export pipeline that will transport recovered gas to Brunei’s onshore LNG facilities, supporting both domestic energy supply and export commitments.
Long-Term Natural Gas Supply:
Once commissioned, the developed field is expected to supply a long-term source of natural gas, consolidating Brunei’s foundational role in regional LNG exports and bolstering energy security for both domestic and international markets.
The contract award is part of a broader push by PETRONAS Carigali Brunei Ltd. to develop offshore gas resources in the face of continued demand for LNG and natural gas in Asia. Although the official project name has not been disclosed in public releases, industry reporting suggests this development may be connected to recent decisions such as the CA2 gas field final investment decision taken earlier in 2025, indicating a trend toward sanctioning significant upstream gas assets.
In parallel, Brunei has also been advancing its offshore infrastructure, including leasing an FPU to support long-term production and export operations. This reflects a strategic effort to maintain export capacity even as other global gas supply sources tighten.
Given the scope of the project, several critical materials will be required for the construction and fabrication of subsea and topside equipment:
Pressure-Resistant Alloys:
Carbon steel for structural components of risers, pipeline supports, and subsea manifolds.
Alloy steels (e.g., P22, P91) for high-temperature and high-pressure sections of pipelines and production equipment.
Corrosion-Resistant Materials:
Stainless steel (304, 316L) for subsea manifolds, flowlines, and topside piping exposed to seawater.
Nickel alloys (e.g., Monel 400, Inconel 625) for sections subject to sour service or aggressive fluids.
Specialty Components:
Skid-mounted modules for pumps and compressors fabricated using high-strength steels.
Columns, heat exchangers, and separators designed with alloy or clad materials for enhanced durability in corrosive and high-pressure conditions.
The project offers a significant potential for clad plate usage in several areas:
Pressure Vessels and Columns:
Using clad plates (corrosion-resistant alloy layer bonded to carbon or low-alloy steel) can reduce cost while maintaining resistance to CO₂, H₂S, and other corrosive agents.
Heat Exchangers:
Shells and tube sheets fabricated from clad plates allow cost-effective production without compromising corrosion resistance for gas cooling and separation.
Skid Structures:
Structural steel with corrosion-resistant cladding may be applied for modular skid frames exposed to seawater or chemical fluids, extending service life and reducing maintenance.
By incorporating clad plates, McDermott and its suppliers can optimize procurement costs, improve lead times, and enhance operational reliability of the offshore facilities.
The Brunei offshore gas project underscores ongoing investment in the Southeast Asian LNG sector, which in turn drives demand for high-performance steels, corrosion-resistant alloys, and composite materials. Equipment suppliers, especially those providing heat exchangers, pressure vessels, and modular skids, are expected to see substantial demand for both solid and clad steel solutions.
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