McDermott, a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments, has expressed optimism for the prospects of Ghana’s oil and gas industry after making its entry onto the local market — after entering a joint venture with Hydra Offshore Group, a local engineering firm.
Addressing the press on the sidelines of a seminar on the company’s operations, Mr. Iain Grainger, Vice-President for Africa and Europe-McDermott International, said developing a long-term relationship with Ghana and the rest of Africa is the company’s focus.
The company delivers fixed and floating production facilities, pipelines and sub-sea systems from concept to commissioning for complex offshore and sub-sea oil and gas projects, to help oil companies safely produce and transport hydrocarbons.
McDermott International, Inc. operations in Ghana entered into a joint venture with Hydra Offshore Group Ghana in order to pursue key offshore opportunities in the country and other developments in the African market.
“There are great opportunities that we see in Ghana, so we are here to stay; however, the challenge is we have to keep monitoring developments on the world stage. We have small establishments here and if we are successful, and I hope we are successful, we will have to grow our capabilities in country,” he said.
“We have submitted bids to a number of oil-field industry operators in Ghana, and we are very positive about the prospects.
“We are assessing the options available to us; once the Jubilee Field is developed there will be further expansion with additional facilities that will present us with great opportunities. Ultimately the TEN project, which is yet to be developed, will have to be expanded; and we are looking forward to being part of the success story,” Mr. Grainer said,
The Vice-President for Africa and Europe said establishing a fabrication yard in Ghana “will depend on the market, the size of the market, and how reliable it is in the face of recent trends in the industry. It could be engineering; fabrication could be provision of logistics and we will look to expand as the market expands.
“At US$30 per barrel today, it would be challenging to make any large investments with the increasing uncertainty about the oil price recovery; so what we will do in Ghana, as we do in other locations, is to monitor the market.
“We are looking; we are talking to the clients; we are evaluating what type of projects we are going to go into and when we are going to carry them through; and if the market justifies them then we look to invest further, to do more work in-country,” he added.
Delali Otchi, Group CEO-Hydra Offshore Group, said he is looking forward to a long and successful association building on McDermott’s extensive experience.