HOUSTON--(BUSINESS WIRE)--McDermott International, Inc. (NYSE:MDR) (“McDermott”) announced today that it has been awarded a large project for a new jacket, temporary deck and replacement umbilical by Qatar Petroleum for the North Field Alpha gas development, offshore Qatar. Work is expected to be executed through the second quarter of 2016 and will be included in McDermott’s first quarter 2015 backlog.
The brownfield contract includes front-end engineering design verification, detailed engineering, procurement, construction, installation (“EPCI”) and commissioning of a new six-legged, 15-slot wellhead jacket and temporary drill deck, with a total weight of approximately 5,000 tons. The work also includes the decommissioning, removal, replacement and pre-commissioning of 2.6 miles of composite umbilical and a fiber optic cable, in the Maydan Mahzam field.
“For more than 30 years, McDermott has successfully delivered numerous projects for Qatar Petroleum and its partners in Qatar’s North Field, and we are pleased to further build on this relationship, as they focus on enhancing their oil recovery and production capability,” said Tom Mackie, Vice President, Middle East. “We believe our ability to provide a fully integrated EPCI solution from one centralized location in Dubai will enable us to be more effective at ensuring certainty of delivery across all stages of the project allowing for more scheduling flexibility, and higher quality and safety, which is critical when working within an actively producing field, to ensure minimal operational interruption.”
Detailed engineering, procurement and construction is expected to be carried out by McDermott’s specialist teams in Dubai, United Arab Emirates with vessels from the McDermott global fleet scheduled to undertake the installation work in 2016.
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, the expected scope, execution and timing associated with this project and our belief that our ability to provide a fully integrated EPCI solution from one centralized location will enable us to be more effective at ensuring certainty of delivery for the 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.