HOUSTON, July 5, 2019 /PRNewswire/ -- McDermott
International, Inc. (NYSE: MDR) today announced it and its joint
venture member Chiyoda have reached an agreement with Cameron LNG
related to the construction of its LNG liquefaction project in
Louisiana.
The agreement includes the following key components:
- Provides the opportunity for incentive bonus payments for
achieving construction and commissioning milestones on specified
dates for Trains 2 and 3
- Aligns the start dates for any schedule-related liquidated
damages to be consistent with the current schedule
- Fully aligns and strengthens the commitment of CCJV to complete
the project in accordance with the current schedule
"Over the past year, we have further strengthened our
relationship with Cameron LNG and our leadership, oversight,
execution, forecasting and reporting on the project. In the last
few months, the joint venture project team has made tremendous
progress, including first liquid and first cargo from Train 1,"
said Samik Mukherjee, Group Senior
Vice President, Projects. "We are extremely pleased with the
agreement, which is a testament to the progress and the strong
performance of our project team. It was crafted with the
full support and collaboration of Cameron LNG to optimize the
timing and cost-effectiveness of the remaining work – and it does
so in a way that we believe will benefit all involved
parties."
The favorable financial impact of the agreement is incorporated
in McDermott's previously issued guidance for 2019.
Since the initial award in 2014, McDermott and Chiyoda have
provided the engineering, procurement and construction for the
Cameron LNG project. The project includes three liquefaction trains
with a projected export capacity of more than 12 million tonnes per
annum of LNG, or approximately 1.7 billion cubic feet per day.
As previously disclosed, the project was approximately 90
percent complete as of the end of the first quarter of
2019. The company expects initial production from Trains 2 and
3 in the first quarter of 2020 and the second quarter of 2020,
respectively.
About McDermott
McDermott is a premier, fully
integrated provider of technology, engineering and construction
solutions to the energy industry. For more than a century,
customers have trusted McDermott to design and build end-to-end
infrastructure and technology solutions to transport and transform
oil and gas into the products the world needs today. Our
proprietary technologies, integrated expertise and comprehensive
solutions deliver certainty, innovation and added value to energy
projects around the world. Customers rely on McDermott to deliver
certainty to the most complex projects, from concept to
commissioning. It is called the "One McDermott Way." Operating in
over 54 countries, McDermott's locally focused and
globally-integrated resources include approximately 32,000
employees, a diversified fleet of specialty marine construction
vessels and fabrication facilities around the world. To learn more,
visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe
Harbor provisions of the Private Securities Litigation Reform Act
of 1995, McDermott cautions that statements in this press release
which are forward-looking, and provide other than historical
information, involve risks, contingencies and uncertainties that
may impact McDermott's actual results of operations. These
forward-looking statements include, among other things, statements
about McDermott's beliefs with respect to the benefits to be
realized from the agreement with Cameron LNG and about the expected
scope, and timing of the project discussed in this press release.
Although we believe that the expectations reflected in those
forward-looking statements are reasonable, we can give no assurance
that those expectations will prove to have been correct. Those
statements are made by using various underlying assumptions and are
subject to numerous risks, contingencies and uncertainties,
including, among others: adverse changes in the markets in which we
operate or credit markets, our inability to successfully execute on
contracts in backlog, changes in project design or schedules, the
availability of qualified personnel, changes in the terms, scope or
timing of contracts, contract cancellations, change orders and
other modifications and actions by our customers and other business
counterparties, changes in industry norms and adverse outcomes in
legal or other dispute resolution proceedings. If one or more of
these risks materialize, or if underlying assumptions prove
incorrect, actual results may vary materially from those expected.
For a more complete discussion of these and other risk factors,
please see McDermott's annual and quarterly filings with the
Securities and Exchange Commission, including its annual report on
Form 10-K for the year ended December 31,
2018, and subsequent quarterly reports on Form 10-Q. This
press release reflects management's views as of the date hereof.
Except to the extent required by applicable law, McDermott
undertakes no obligation to update or revise any forward-looking
statement.
Contacts:
Investor Relations
Scott
Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and
Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
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SOURCE McDermott International, Inc.