McDermott International Inc. has been granted approval from Beowulf Energy LLC and Preem AB to commence the FEED phase for its residue oil conversion complex (ROCC) project, which will be implemented at the Preem refinery in Lysekil, Sweden, it has announced. 

The FEED will be executed from McDermott’s downstream centres of excellence in the Hague, the Netherlands and Brno, Czech Republic. Work on the project will begin immediately and is expected to be completed in the fourth quarter of 2020.

This follows the technology licence agreement in 2017, (which was worth between £0.77 million and £38.4 million), between McDermott’s joint venture with Chevron – Chevron Lummus Global (CLG) – and Beowulf Energy, related to CLG’s LC-SLURRY Unit and the subsequent pre-FEED work executed by McDermott.

That award marked the first LC-SLURRY technology licence since adding the maximum residue conversion technology to the CLG portfolio.

Between 2003 and 2006, McDermott worked at the Preem refinery as the FEED and engineering, procurement, construction management contractor for the hydrocracker project, which was also based on CLG technology.

Tareq Kawash, McDermott’s Senior Vice President for Europe, Africa, Russia and Caspian said: “Building on the CLG licence for its state-of-the-art LC-SLURRY technology, McDermott is proud to continue supporting Beowulf Energy and working at the Preem refinery with the development of the FEED phase for the ROCC project.”

He added that the award of this next phase “is testament to McDermott’s unique ability to leverage its pull through capabilities to deliver execution certainty to our customers.”

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30th January 2020