HOUSTON, July 10, 2019 /PRNewswire/ -- McDermott
International, Inc. (NYSE: MDR) announced it has been awarded a
contract in excess of $3 billion for
Package 1 of Saudi Aramco's Marjan Increment Development
Mega-Project to provide engineering, procurement, construction and
installation (EPCI) of the Gas-Oil Separation Plant (GOSP), in
a consortium with China Offshore Oil Engineering Company
(COOEC).
McDermott will lead the consortium with COOEC in an integrated
execution model utilizing McDermott's extensive global assets and
facilities. The consortium will leverage McDermott's extensive
project management, engineering, global procurement, fabrication,
In-Kingdom field-operations and marine knowledge of the Marjan
field with COOEC's fabrication capability and marine vessels.
The Package 1 GOSP separation platform is located offshore in
the eastern flank of the Arabian Gulf. This is the operational
center of the Marjan increment development mega-project and will
draw upon McDermott's extensive interface and logistics management
capabilities.
The award represents the single largest EPCI offshore contract
awarded by Aramco. The Marjan Increment Project will increase
production from 500,000 to 800,000 barrels of oil per day, with
Package 1 GOSP facilities at the core of the development.
"This award signifies Aramco's confidence in McDermott's project
management expertise and ability to meet the interface,
logistics and coordination challenges that an EPCI project of this
vast scale represents," said Linh
Austin, Senior Vice President, Middle East and North Africa. "The award is validation of the
One McDermott Way, our locally focused and globally-integrated
approach to deliver certainty to the most complex projects."
The contract includes the fabrication of over 165,000 tons
(150,000 metric tons) consisting of six major topside platforms and
jackets, 12 bridges and six bridge support platforms and jackets,
as well as over 40 miles (70 kilometers) of 36-inch oil export
trunk lines and more than 55 miles (90 kilometers) of 230kV
composite subsea cables.
The project management and engineering teams will be centrally
located in McDermott's Asia-Pacific Headquarters in Kuala Lumpur, Malaysia, in close proximity to
our Batam Island fabrication facility in Indonesia and the COOEC facility in
China. The engineering phase is
scheduled to begin in the third quarter of 2019 and fabrication is
scheduled to begin in the first quarter of 2020, with overall
completion planned for the fourth quarter of 2022. The contract
award will be reflected in McDermott's second quarter 2019
backlog.
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 backlog, to the extent backlog
may be viewed as an indicator of future revenues or profitability,
and about the expected value, scope, execution 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
Local Media Relations
Barbara Knight
Senior Director, Area Communications and Marketing
Middle East and North Africa (MENA)
+971 (0)4 804 3990
BBknight@McDermott.com
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SOURCE McDermott International, Inc.