HOUSTON--(BUSINESS WIRE)--McDermott International, Inc. (NYSE: MDR) (“McDermott”) announced today that one of its subsidiaries has been awarded a large engineering, procurement, construction and installation (“EPCI”) project by an operator in the Arabian Gulf. The award is included in McDermott’s fourth quarter 2013 backlog.
The contract includes the engineering, fabrication, transportation and installation of four new offshore topsides facilities, plus modification of two existing production facilities to extend the current deck space and maximize the size of modules. The combined total weight of the structures will exceed 3,500 metric tonnes. The awarded scope also includes the installation of a 12-inch subsea pipeline of approximately 15 kilometers. Water depths range between 10 to 14 meters.
Commenting on the award, David Dickson, President and Chief Executive Officer said, “The project is part of a plan to boost oil production from existing fields, by the implementation of gas injection technology, and the installation of new production wells. Our ability to provide sound technical solutions in both brownfield and greenfield scopes supported by our regional capabilities in providing fabrication, marine and manpower resources has helped us secure this award.”
Engineering and fabrication for the project will be undertaken by McDermott at its Jebel Ali facility in Dubai, with transportation and installation carried out by vessels from the McDermott global marine fleet. Offshore operations are expected to commence in the fourth quarter of 2014, with project completion, including hookup and commissioning, planned for the first quarter of 2015.
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 14,000 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.
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 International, Inc. cautions that statements in this press release which are forward-looking and provide other than historical information involve risks and uncertainties that may impact McDermott's actual results of operations. The forward-looking statements in this press release include, among other things, the expected scope, execution and timing associated with this project. Although McDermott's management believes that the expectations reflected in those forward-looking statements are reasonable, McDermott can give no assurance that those expectations will prove to have been correct. Those statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including without limitation, changes in project design or schedule, contract cancellation, 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 report on Form 10-K for the year ended December 31, 2013. This news release reflects management's view 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.