India is one of the key markets for McDermott

Q. Could you provide an overview of McDermott’s global operations and areas of expertise?

McDermott is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. We deliver fixed and floating production facilities, pipelines and subsea systems from concept to commissioning for complex offshore and subsea oil and gas projects to help oil companies safely produce and transport hydrocarbons. Our customers include national and major energy companies. Operating in approximately 20 countries across the world, our locally focused and globally integrated resources include approximately 13,500 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices.
We are renowned for our extensive knowledge and experience, technological advancements, performance records, superior safety and commitment to deliver. McDermott has served the energy industry since 1923.

Q. What are the activities of McDermott India?

McDermott operates the Global Engineering Center of Excellence in Chennai with staff strength of approximately 300 employees, mostly engineers. Chennai also provides project management oversight. Some of the global projects that have been undertaken by Chennai include PB-Litoral-A for Pemex in Mexico, Angelin for BP in Trinidad and Tobago and large projects for Saudi Aramco. In Mumbai and closer to our clients, we have a business development office. In Pune, McDermott has recently opened a new Digital Innovation Center that will serve as a technology epicenter to support our expansion plans as well as McDermott’s digital initiatives globally. The technology innovations will primarily be used to develop external solutions for the oil and gas market, covering three main areas – digital innovation delivery, digital product management and the digital experience. McDermott currently has two large EPCI projects in India, namely Vashishta S1 Field Development Project by ONGC and KG-D6 Field Development Project by Reliance Industries.

Q. Could you elaborate about the new centre in Pune?

The centre is driven by McDermott’s key focus to develop and utilise innovative digital solutions to lead transformations in offshore oil and gas projects. Also, the facility will encourage high technology employment opportunities in the local area. The Digital Innovation Center will serve as a technology epicenter to support McDermott’s India plans for growth as well as support McDermott’s digital initiatives globally.

The technology innovations will be primarily used to develop external solutions for the oil and gas market. The centre is expected to further supplement the organisation and the clients to give a more real-life and 3D view of the projects that will be developed in the labs. It is spread across 5,400 sq. feet space, is expected to grow in the coming years and will house a highly-collaborative, cross-functional team equipped with world-class technology and services to enhance the customer experience.

Q. In terms of providing engineering expertise, could you cite two case studies of India-based clients?

One is the ONGC Cluster 7 EPCI Project. McDermott has a long history of working with ONGC, dating to the late 1970s when McDermott installed the first offshore platform in Bombay High. More recently, McDermott successfully completed the engineering, procurement, construction and installation for the Cluster 7 wellhead project in May 2013. The ONGC Cluster 7 EPCI project was engineered in India. The project was also managed out of India with 100% local engineers. It was the first ‘Indian solution for an Indian project’.

The second is the ONGC Vashishta and S1 Development Project. The consortium of McDermott and L&T Hydrocarbon Engineering (LTHE), a wholly-owned subsidiary of Indian conglomerate Larsen & Toubro, was awarded a contract covering the engineering, procurement, construction and installation of major subsea field infrastructure for the Vashishta and S1 Development Project, a greenfield deep water development off India’s east coast. The scope of work includes supply and installation of a series of pipeline end terminations (PLETs) and in-line tee structures (ILT), a pipeline end manifold structure (PLEM), rigid jumpers and umbilicals. The pipeline scope includes dual rigid pipelines extending from the shallow water shoreline to a maximum water depth of 2,300 feet.

Q. What are the company’s expansion plans for India?

India is one of the key markets for McDermott. We will continue to build on local engineering capability and knowledge to position India as one of our key engineering hubs in Asia. With that continued positioning, we plan to continue to grow our presence in India in both size and scope.

Q. What, in your opinion, will drive the engineering sector in India in the coming 2-3 years?

Chennai has contributed to our increased competitiveness in the market which is a key factor for success in business in the current economy landscape. The low oil price challenge in the last few years has resulted in many companies cutting back on capex.
McDermott has to find creative ways to meet the needs of a cost-sensitive market. As an EPCI company, we were able to incorporate greater commercial sense in engineering. This means that we can influence the outcome to be more cost-efficient for our clients.

Q. How does McDermott India plan to capitalize on these triggers?

McDermott will continue to leverage on the knowledge and experience in India and the region to offer customer-centric solutions to the industry. Indian engineers are highly in demand. You can find our engineers working in the Middle East, America, Asia and almost every corner of the world.

One of the key advantages of operating in India is that McDermott is able to tap into this talent pool.