McDermott International Inc. (NYSE: MDR) has won a contract award for concept and engineering services for the Talos Energy-led Zama Field development project offshore Mexico, according to a news release.
The contract, which includes follow-on pre-FEED, will be executed with io oil & gas consulting, a joint venture between McDermott and Baker Hughes, a GE company (NYSE: BHGE), McDermott said in the release Nov. 15.
McDermott will manage all phases of the engineering services process and workshare engineers and designers in Mexico City, receiving continuous support from io and input from the customer, the release said. Based on the final concept solution identified by io, McDermott will provide the follow-on pre-FEED services for the Zama development.
Work on the concept selection has begun with expected completion in third-quarter 2019.
McDermott said the contract award will be reflected in its fourth-quarter 2018 backlog.
At a water depth of about 165 m (540 ft), the Zama Field is located in Block 7 of the Sureste Basin in the Gulf of Mexico. Talos estimates the field has between 400 and 800 million recoverable barrels of oil equivalent, the release said. Appraisal activities are set to begin in late 2018 with two additional wells and first oil is expected by 2022.
Partners in the project are Sierra Oil and Gas (40%) and Premier Oil (25%). Talos holds a 35% participating interest.
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