McDermott awarded offshore EPCI contract from Saudi Aramco
January 25 2017 - 7:00AM
McDermott International, Inc. (NYSE:MDR) announced today it has
been awarded a substantial contract from Saudi Aramco for
engineering, procurement, construction and installation (EPCI)
services in the Safaniya and Zuluf fields offshore Saudi Arabia.
The brownfield project is part of a wider program to replace
aging facilities with electrified platforms to enhance the
potential of the fields. The contract includes the design,
procurement, fabrication, transportation, installation, testing and
pre-commissioning of nine slipover jackets and decks, subsea
pipelines and cables, as well as the associated demolition of
certain facilities, in the Safaniya field. The contract also
includes one single well observation platform in the Zuluf
field.
“McDermott’s partnership with Saudi Aramco developing the
Safaniya field dates back more than 50 years,” said Linh Austin,
McDermott’s Vice President, Middle East and Caspian. “We believe we
are uniquely positioned to achieve Saudi Aramco’s accelerated
schedule based on our unparalleled experience providing integrated
solutions within the region and in shallow water development and
installation.”
McDermott was also recently awarded a contract to provide a
fast-track EPCI solution for four jackets and three gas observation
platforms for Saudi Aramco.
The Safaniya oil field, located approximately 125 miles (201 km)
north of Dhahran in the Arabian Gulf, is currently the largest
offshore oil field in the world. McDermott’s work in the Safaniya
field dates back to 1964, with the installation of 62 platforms and
a large number of associated flexibles, umbilicals, flow/trunk
pipelines and power/composite cables. Over the last six years,
McDermott has been involved with three major electrification
projects in the Safaniya field, which included 13 new platforms and
34 platform upgrades and modifications. During this period,
McDermott installed Saudi Aramco’s largest platform at 6,600 tons
and the world’s longest 230kV composite cable at approximately 29
miles (46.7 km).
Work on the contract is expected to begin immediately and will
be reflected in McDermott’s fourth quarter 2016 backlog.
McDermott plans to use its engineering and procurement teams in
Dubai, UAE and its recently opened office in Al Khobar, Saudi
Arabia. Construction will take place at McDermott’s fabrication
facilities in Dubai and Dammam, Saudi Arabia. Vessels from
McDermott’s global fleet are scheduled to perform the installation
work.
ABOUT McDERMOTTMcDermott 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 customers include national and major energy companies.
Operating in approximately 20 countries across the world, our
locally focused and globally integrated resources include
approximately 12,400 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. As used in this press release,
McDermott includes McDermott International, Inc. and its
subsidiaries and affiliates. To learn more, visit our website at
www.mcdermott.com.
FORWARD LOOKING STATEMENTSIn 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, McDermott’s beliefs with
respect to achieving the accelerated schedule 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: adverse
changes in the markets in which we operate or credit markets, 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 other business counterparties, changes
in industry norms and adverse outcomes in legal or other dispute
resolution proceedings. 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, 2015 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
Kathy Murray
Vice President, Treasurer and Investor Relations
+1 281.870.5147
kamurray@mcdermott.com
Global Media Relations
Adam Morgan
Director, Global Communications
+1 281.253.9005
amorgan@mcdermott.com
Local Media Relations
Emily Beadon
Manager, Communications & Marketing
Middle East & Caspian
+971 (0) 4 804 3140
ehbeadon@mcdermott.com
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