First subsea contract with Eni takes McDermott to Cyprus

U.S. offshore engineering and construction player McDermott has secured its first subsea contract with Eni for the first gas development in Cyprus.

Operated by Eni and located in deep offshore waters approximately 185 kilometers southwest of the coast of Cyprus, in offshore Block 6, Cronos was discovered in 2022 and appraised in 2024. The final investment decision (FID) for the project was reported in July.

Under the contract secured with Eni Cyprus Limited, McDermott will provide project management, engineering, procurement and installation support for the development of the gas field.

The project will be carried out by the Subsea and Floating Facilities team with expertise and resources from Houston, Perth, London and Kuala Lumpur, supported by the company’s marine construction fleet.

McDermott described the contract as substantial, which it says is worth between $500 million and $750 million.

“This award demonstrates the strength of McDermott’s integrated subsea engineering, procurement, construction and installation capabilities and reflects the value we bring through our technical expertise and differentiated deepwater asset, the Amazon,” said Mahesh Swaminathan, McDermott’s Senior Vice President, Subsea and Floating Facilities. “Our global execution teams, supported by reliable local partnerships, will help advance the Cronos development safely and efficiently.”

Cronos will be developed through four subsea wells and will partly rely on existing facilities in Egypt. Gas will be transported by subsea pipeline from Cyprus to Egypt, where it will be processed in Zohr facilities and then liquefied at the Damietta LNG terminal before being exported to international markets, primarily Europe.

Production start-up is expected in 2028, with a plateau of around 500 million cubic feet per day (Mcf/d), equivalent to around 2.8 million tons of LNG per year (Mtpa), 50% of which will be marketed by TotalEnergies.