BP awards McDermott, BHGE engineering contract for offshore gas project

Offshore ProjectThe Tortue/Ahmeyim Field Development is located in the C-8 block off the shore of Mauritania. (Image source: Maersk Drilling/Flickr)British oil major BP has awarded a contract for the Tortue/Ahmeyim offshore gas project to engineering companies McDermott International Inc and Baker Hughes, a GE company (BHGE)

Under terms of the contract, BHGE will provide engineering services for the offshore wells, while McDermott will work on piping for the offshore project.

The companies said that front-end engineering design (FEED) work on the project is scheduled to begin and complete this year.

“Increasingly, industry players are looking for commercially-innovative business models and integrated offerings that help reduce costs, while increasing efficiency and productivity," said Graham Gillies, vice-president, Subsea Production Systems and Subsea Services at BHGE.

“We look forward to partnering again with BP on a significant project to support an efficient and streamlined process towards first gas,” said Scott Munro, vice-president of Americas, Europe and Africa,McDermott International.

BP, the operator for the project, has about a 60 per cent interest in the off shore block first discovered by Kosmos Energy.

The companies also said that the agreement contains a mechanism which allows transition of the contract to a lump sum contract at a later date.

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