McDermott and Larsen & Toubro Consortium Awarded SURF Scope for ONGC Vashishta and S1 Development Project
December 21 2015 - 8:30AM
McDermott International, Inc. (NYSE:MDR) announced today that a
consortium of McDermott and L&T Hydrocarbon Engineering (LTHE),
a wholly owned subsidiary of Indian conglomerate Larsen &
Toubro, was awarded a contract covering the engineering,
procurement, construction and installation of major subsea field
infrastructure for the Vashishta and S1 Development Project, a
greenfield deepwater development off India’s East coast.
The scope of work includes supply and installation of a series
of pipeline end terminations (PLETs) and in-line tee structures
(ILT), a pipeline end manifold structure (PLEM), rigid jumpers and
approximately 30 miles of umbilicals. The pipeline scope includes
64 miles of 14-inch dual rigid pipelines extending from the shallow
water shore line to a maximum water depth of 2,300 feet.
“This award confirms the success of a strong consortium focused
on delivering the best in-market solution for ONGC,” said David
Dickson, McDermott’s President and Chief Executive Officer. “The
combination of our best in class, deepwater, shallow water and
onshore assets and capabilities created a compelling value
proposition and also maximized the amount of work that will be
undertaken in India. We look forward to working seamlessly with
LTHE in delivering flawless execution for ONGC.”
“This collaborative consortium created value by utilizing LTHE’s
strong execution capabilities and strategically located Kattupalli
facility for fabrication, setting up a local spoolbase, and
generating schedule efficiency by using a combination of deepwater
reel-lay and S-lay in shallow water,” said Hugh Cuthbertson,
McDermott’s Vice President, Asia. “In addition to the deployment of
McDermott’s modular, portable spoolbase, McDermott’s Derrick Barge
30 (DB30) and deepwater North Ocean 105 (NO105) are also expected
to be utilized.”
McDermott has a long history of working with ONGC, dating to the
late 1970s, when McDermott installed the first offshore platform in
Bombay High. More recently, McDermott successfully completed the
engineering, procurement, construction and installation for the
Cluster 7 wellhead project in May 2013.
The award will be included in McDermott’s 4Q 2015 backlog.
About McDermott
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 10,300 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 statement
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
value, scope, execution and timing associated with the project
discussed in this press release and the expected benefits and value
resulting from the consortium. 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.
McDermott International, Inc.
Investor Relations
Darcey Matthews, 281.870.5147
Vice President, Investor Relations
dmatthews@mcdermott.com
Media Relations
Richard Goins, 281.870.5932
Director, Global Communications
rgoins@mcdermott.com
Asia Area Communications
Juliana Tan, (65) 6668.5428
Asia Area Communications
yjtan@mcdermott.com
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