McDermott Awarded Abkatun-A2 Contract from PEMEX Exploracion y Produccion
June 27 2016 - 8:00AM
McDermott International, Inc. (NYSE:MDR) announced today it has
been awarded a $454 million USD contract from PEMEX
Exploracion y Produccion for engineering, procurement, construction
& installation (EPCI) for the Abkatun-A2 platform.
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/1ccd1720-5d73-4d56-806a-2a9aa770a7b6
McDermott will provide a vertically integrated, turnkey EPCI
solution to build and commission the platform and associated
structures utilizing its project management and engineering team in
Mexico. The Abkatun-A2 platform is McDermott’s largest project in
size and total value to-date for PEMEX. The platform will be
located in Mexico’s Bay of Campeche in 124 feet of water and will
provide replacement and expansion capabilities to the existing
Ku-Maloob-Zaap, Cantarell and Ayatsil facilities.
“McDermott provided the most efficient and technically compliant
solution leveraging our capabilities in Mexico and our recent
experience with PEMEX on the successful completion of the complex
PB Litoral project,” said Scott Munro, McDermott Vice President for
Americas, Europe and Africa. “Our fully-integrated solution will be
led by our team in Mexico, including project management,
procurement, engineering, fabrication and installation. This allows
us to optimize all phases of the project.”
McDermott will manufacture structures for the Abkatun-A2 project
at the Altamira, Mexico fabrication facility. The yard is
strategically positioned as a free trade zone and provides
fabrication services for the Gulf of Mexico and Americas. The yard
is known for its high-quality craftsmanship and exemplary safety
standards. McDermott is expected to utilize the Derrick Barge 50
and the Intermac 650, the world’s second largest float-over
installation vessel.
“McDermott has focused on several initiatives to lower costs and
increase operational effectiveness to become more competitive in
the market,” added Munro. “Those efforts, coupled with key
strategic decisions that maximize operations and execution in
Mexico, directly contributed to the positive outcome of this award
and will differentiate McDermott from our competitors for continued
growth and success.”
The contract award will be reflected in McDermott’s second
quarter 2016 backlog. Engineering and procurement activities will
commence immediately with fabrication scheduled to begin in late
2016 followed by offshore activities in 2018. Handover to Pemex is
scheduled for fourth quarter of 2018.
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 customers include national and major energy companies.
Operating in more than 20 countries across the world, our locally
focused and globally integrated resources include approximately
11,200 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 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, 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, 2015 and subsequent quarterly filing 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
Media Relations
Adam Morgan
Director, Global Communications
+1 281.253.9005
amorgan@mcdermott.com
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