US Offshore Specialist to Support Eni-Operated Project Valued at Up to $750 Million
US-based offshore engineering and construction firm McDermott has been awarded a significant subsea contract by Eni Cyprus Limited, marking its first subsea collaboration with the Italian energy major. The contract pertains to the development of the Cronos gas field, Cyprus’ first hydrocarbon project, situated in deep offshore waters approximately 185 kilometres southwest of the Cypriot coast within Block 6.
McDermott classifies the award as “substantial”, a category it defines for contracts valued between $500 million and $750 million. Under the terms of the agreement, McDermott will provide comprehensive project management, engineering, procurement, and installation support for the gas field’s development.
The Cronos field, initially discovered in 2022 and successfully appraised in 2024, received its Final Investment Decision (FID) in July 2026. Eni operates Block 6 with a 50% interest, partnered by TotalEnergies, which holds the remaining 50%.
The development plan for Cronos involves four subsea wells. Gas extracted from the field will be transported via a subsea pipeline from Cypriot waters to Egypt. There, it will undergo processing at existing Zohr facilities before being liquefied at the Damietta LNG terminal. The liquefied natural gas (LNG) will then be exported to international markets, primarily Europe.
Production start-up for the Cronos field is anticipated in 2028. At its plateau, the field is expected to yield approximately 500 million cubic feet of gas per day (Mcf/d), equivalent to around 2.8 million tonnes of LNG per year (Mtpa). TotalEnergies is slated to market 50% of this LNG output.
McDermott’s Subsea and Floating Facilities team will oversee the project’s execution, drawing on expertise and resources from its global operations in Houston, Perth, London, and Kuala Lumpur. The company’s specialised marine construction fleet, including its deepwater asset, the Amazon, will support these efforts.
Mahesh Swaminathan, McDermott’s Senior Vice President, Subsea and Floating Facilities, commented on the award: “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. Our global execution teams, supported by reliable local partnerships, will help advance the Cronos development safely and efficiently.”