McDermott leads race for role at Kepodang

Pole position: McDermott's yard in Batam, Indonesia

MCDERMOTT

By TAN HWEE HWEE Singapore

 08 November 2012 23:59 GMT

The Indonesian subsidiary of McDermott is leading the race for a key contract for the Petronas-operated Kepodang gas development by a large margin.

McDermott has submitted an aggressive bid of $217 million for the procurement, installation, construction and commissioning contract through its now majority-Indonesian-owned subsidiary, leading two rival group bids by a margin of more than 30%.

Its offer is understood to have come in at just $2 million more than Malaysian national oil company Petronas’ approved project budget of $215 million.

Petronas is entitled to enter into direct talks with McDermott to seek a compromise on the commercial terms before pushing on with the contract award.

The huge price differentials among the three contenders have been…

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