Korea’s Posco International has formally signed a contract for the parallel front-end engineering and design contract for phase three of its Shwe gas project off Myanmar with US contractor McDermott.

McDermott and rival Hyundai Heavy Industries will now commence the dual FEED work for a new compression platform, the bridge linking it to the existing Shwe central processing platform and modifications to that structure.

Shwe operator Posco intends to next year award the project’s engineering, procurement, construction, installation and commissioning contract as a follow-on job to the successful FEED contractor.