McDermott International and GE subsidiary Baker Hughes (BHGE) have signed a memorandum of understanding with Western Gas Corporation to be the exclusive development partners for the Equus Gas Project in Western Australia.
The companies were also awarded a contract to support the planning phases of the project.
As part of this initial contract, McDermott and BHGE will work with Western Gas to advance the pre-front-end engineering design (pre-FEED) and front-end engineering design (FEED) to final investment decision (FID). McDermott and BHGE's joint venture, io Oil and Gas Consulting, will provide the pre-FEED support.
Pre-FEED work will commence immediately and is estimated to be complete by the second quarter of 2019. McDermott and BHGE will continue with FEED work thereafter.
Upon FID, McDermott and BHGE are expected to undertake the engineering, procurement, construction, installation, and commissioning (EPCIC) of the entire field development scope under a separate contract. The scope will cover reservoir evaluation, drilling and completions, subsea, production facilities, an export pipeline, an LNG facility, and a domestic gas connection facility.