McDermott Awarded Lump Sum Contract by Saudi Aramco
August 27 2015 - 8:00AM
Business Wire
- Combined package is the largest single
award in the history of McDermott’s Middle East Area
- Brownfield award follows signing of
Long Term Agreement in June 2015
McDermott International, Inc. (NYSE:MDR) announced today it has
been awarded a lump sum contract by Saudi Aramco for brownfield
work in various fields offshore Saudi Arabia.
Work on the contract is expected to be executed through the
second quarter of 2018. The award follows the June 2015 signing of
a second Long Term Agreement (LTA) between McDermott and Saudi
Aramco for engineering, procurement, construction and installation
(EPCI) opportunities in various fields offshore Saudi Arabia.
The package of various EPCI projects that make up the lump sum
award represent the largest single award for McDermott’s Middle
East Area operations in company history. Revenue from the
fixed-price award will be included in McDermott’s third quarter
2015 backlog.
“Winning this important award and signing the new LTA sends a
clear signal that our increased engagement with key clients is
generating concrete results,” said David Dickson, McDermott’s
President and CEO. “Our detailed knowledge and understanding of
Saudi Aramco’s objectives, as well as our proven excellence in the
Kingdom and the region continue to set us apart. Delivering on
strong project execution and integrating McDermott’s local
knowledge are critical to future success as we execute these and
other projects for Saudi Aramco.”
Tom Mackie, McDermott’s Vice President, Middle East, said, “As
one of the original two contractors for Saudi Aramco’s first LTA in
2007, we understand Saudi Aramco’s offshore fields, standards and
specifications – and the value that Saudi Aramco places in
McDermott’s fully integrated EPCI solutions.”
During the execution of the projects under the fixed price
contract, McDermott plans to maximize in-Kingdom execution
activities with a significant portion of the engineering and
fabrication scope expected to be carried out by its engineering
office in Al Khobar and fabrication facility in Dammam,
respectively.
Additional services are expected to be provided by McDermott
engineering teams in Dubai, United Arab Emirates and Chennai,
India. Procurement is expected to be managed by McDermott’s Global
Procurement Office based in Dubai and vessels from the McDermott
global fleet, including specialized shallow-water installation
vessels, are scheduled to undertake offshore installation.
McDermott provides its investors with information relating to
estimated contract value in its quarterly supplemental financial
information slides which can be found on the Investor Relations
section of McDermott’s web site. This award would fall into the
largest descriptor range included in these slides.
ABOUT McDERMOTT
McDermott (NYSE: MDR) is a leading provider of integrated
engineering, procurement, construction and installation (EPCI)
services for upstream field developments worldwide. McDermott
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 11,700 employees and
contractors, 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, 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, and the expected
value, scope, execution and timing associated with 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: 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 business partners, difficulties
executing on the project and changes in industry norms. 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 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150827005268/en/
McDermott International, Inc.Investor
RelationsDarcey Matthews, +1 281-870-5147Vice President,
Investor Relationsdmatthews@mcdermott.comorMedia
RelationsRick Goins, +1 281-870-5932Director, Global
Communicationsrgoins@mcdermott.comorRegional
CommunicationsRissa Rosmawati, +971 4.804.3293Middle East
Communicationsrrosmawati@mcdermott.com
McDermott (NYSE:MDR)
Historical Stock Chart
From Mar 2024 to Apr 2024
McDermott (NYSE:MDR)
Historical Stock Chart
From Apr 2023 to Apr 2024