HOUSTON--(BUSINESS WIRE)--McDermott Middle East, Inc. (NYSE:MDR) (“McDermott”) announced today that it has been awarded initial work for a significant power supply system replacement contract by Saudi Aramco for the Marjan field, offshore Saudi Arabia. Work is expected to be executed through the fourth quarter of 2016 and will be included in McDermott’s first quarter 2015 backlog.
The overall brownfield project comprises integrated engineering, procurement, construction, installation (“EPCI”) and replacement of the decks of two existing tie-in platforms, as well as the removal and salvage of existing gas turbine generators, and the installation of two new 115kV subsea power and communication cables. The initial scope of work awarded today, comprises the engineering, procurement, fabrication and load-out of the platforms and cable.
“McDermott’s continuing relationship with Saudi Aramco and our commitment to the Kingdom of Saudi Arabia is reflected in this project award, as well as our ability to provide integrated services and an efficient technical solution within an active production field,” said Tom Mackie, Vice President, Middle East. “We approach facility modifications with safety and our client’s production in mind, using the latest technology, a full suite of design disciplines and proprietary McDermott processes to minimize operational interruption.”
Engineering is expected to be carried out by McDermott’s specialist teams in Dubai, U.A.E.; Al Khobar, Saudi Arabia; and Chennai, India, and the two new electrical decks are scheduled to be fabricated at the Dubai-based fabrication facility.
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.
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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.