HOUSTON--(BUSINESS WIRE)--McDermott International, Inc. (NYSE:MDR) announced that the consortium between McDermott and a consortium partner has been awarded the SURF engineering, product supply and installation scope for the Atlanta Early Production System (EPS) in the Santos Basin offshore Brazil by Brazilian exploration and production company Queiroz Galvão Exploração e Produção S.A. (QGEP).
McDermott engineering and installation revenue from the large, green field project will be included in backlog for the first quarter of 2015. The project is expected to be completed by the end of the second quarter of 2016.
The Atlanta EPS is phase 1 of the Atlanta field development, located in 5,085 feet of water in Brazil Block BS-4 of the Santos Basin southeast of Rio de Janeiro. QGEP recently announced that it expects to produce its first oil from the offshore Atlanta field in the first half of 2016.
“This joint award reflects the confidence that Queiroz Galvão Exploração e Produção has in McDermott and its consortium partner to deliver its scope of work on time and with the highest standards of quality and safety,” said David Dickson, McDermott’s President and Chief Executive Officer.
“This award also represents an important step for McDermott’s strategic plan for Brazil, adding to the Company’s experience as a ‘Long Term Charter’ subsea installation contractor while demonstrating to the market our differentiated capabilities and technical expertise to perform EPCI work in this region,” Dickson said.
McDermott will be responsible for the engineering and offshore installation of all subsea hardware, including flexible pipes, umbilicals, umbilical termination assemblies, subsea pump skids, suction piles, and associated equipment. McDermott’s installation vessel NO102 will conduct on-site work as soon as QGEP’s floating production, storage and offloading (FPSO) unit is available, providing the client with first oil at an accelerated pace, according to Dickson.
McDermott’s consortium partner will be responsible for the supply of all flexible risers, flowlines and associated equipment.
McDermott is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. The Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning for complex Offshore and Subsea oil and gas projects to help oil companies safely produce and transport hydrocarbons. Our clients include national and major energy companies. Operating in more than 20 countries across the world, our locally focused and globally integrated resources include approximately 13,400 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices. We are renowned for our extensive knowledge and experience, technological advancements, performance records, superior safety and commitment to deliver. McDermott has served the energy industry since 1923 and is listed on the New York Stock Exchange. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates.
To learn more, please visit our website at 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, and the expected scope, execution and timing associated with this project. 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: our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the scope or timing of contracts, contract cancellations, change orders and other modifications and difficulties executing on the project. 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, 2014. 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.