McDermott International, Inc. (NYSE:MDR) and Baker Hughes, a GE
company (NYSE:BHGE) today announced the selection of front-end
engineering design (FEED) studies in advance of a substantial*
engineering, procurement, construction and installation (EPCI)
contract for BP’s Tortue/Ahmeyim Field Development, a major gas
project located on the maritime border of Mauritania and Senegal.
During this initial engineering phase, McDermott will work on
defining the subsea umbilicals, risers and flowlines (SURF) scope
for the project, while BHGE will focus on the subsea production
system (SPS) scope. The FEED is scheduled to begin and complete
this year. The agreement contains a mechanism to allow transition
of the contract to a lump sum EPCI contract at a later date.
McDermott will work jointly with BHGE to provide an optimized,
integrated solution.
“We look forward to partnering again with BP on a significant
project to support an efficient and streamlined process towards
first gas,” said Scott Munro, Vice President of Americas, Europe
and Africa. “Building on our relationship with BP on Angelin,
McDermott’s focus on modernized project management and a
collaborative approach will create a fully inclusive, open and
transparent working environment for BP and major partners to ensure
success. Our integrated approach with BHGE will bring the best
total solution to BP that we believe will provide schedule and
budget certainty.”
“We will be working closely with BP and McDermott on this
strategically-important gas project, that will benefit from our
extensive knowledge of deep water, large bore gas technologies and
FEED capabilities,” said Graham Gillies, Vice President, Subsea
Production Systems and Subsea Services at BHGE. “Increasingly,
industry players are looking for commercially-innovative business
models and integrated offerings that help reduce costs, while
increasing efficiency and productivity. This is an excellent
example of how the industry has evolved its approach, with global
operators now embracing the benefits of early engagement with OEMs
and service providers.”
McDermott expects to use the Project Lifecycle Management (PLM)
module from its new digital platform Gemini XD to deliver advanced
technology through project execution and the development of a
digital twin of the complete system.
The project will also benefit from BHGE’s RealTrack digital
collaboration tool which provides live, real-time reporting of
schedule progress, document status and issues management for more
efficient project execution. RealTrack is designed to help
customers optimize their operations, respond quickly to arising
issues and plan effectively for changing requirements as projects
evolve.
Teams from McDermott and BHGE will perform the project
management and FEED work from McDermott’s Epsom facility in the
United Kingdom.
Project DetailsThe initial subsea
infrastructure connects the first four wells consolidated through
production pipelines leading to a floating production, storage, and
offloading (FPSO) vessel. From here liquids are removed and the
export gas is transported via a pipeline to the floating liquid
natural gas (FLNG) hub terminal where the gas is liquefied.
The Tortue/Ahmeyim Field Development is located in the C-8 block
off the shore of Mauritania and the Saint-Louis Profond block
offshore Senegal. The Tortue discovery was made by Kosmos Energy,
which farmed down its investment to BP in December 2016. BP now has
the largest interest (~60%) among the four partners in the project
and is the operator.
* - McDermott defines a substantial contract as between USD $500
million and USD $750 million.
About McDermott
McDermott is a leading provider of integrated engineering,
procurement, construction and installation (“EPCI”), front-end
engineering and design (“FEED”) and module fabrication services for
upstream field developments worldwide. McDermott delivers fixed and
floating production facilities, pipelines, installations 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 11,800 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 shares of its common stock are 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 our website at www.mcdermott.com.
About Baker Hughes, a GE company Baker Hughes,
a GE company (NYSE:BHGE) is the world’s first and only fullstream
provider of integrated oilfield products, services and digital
solutions. We deploy minds and machines to enhance customer
productivity, safety and environmental stewardship, while
minimizing costs and risks at every step of the energy value chain.
With operations in over 120 countries, we infuse over a century of
experience with the spirit of a startup – inventing smarter ways to
bring energy to the world. Visit us at BHGE.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 the expected value, scope, execution and
timing associated with the project discussed in this press release
and McDermott’s expectations with respect to schedule and budget
certainty 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: 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, 2017 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
RelationsTy Lawrence Vice President, Treasurer and
Investor Relations +1 281.870.5147 tplawrence@mcdermott.com
Global Media RelationsAdam MorganDirector, Global
Communications & Marketing+1
281.253.9005amorgan@mcdermott.com
Baker Hughes, a GE Company
Investor RelationsPhilipp Mueller+1 281 809
9088investor.relations@bhge.com
Media RelationsGavin RobertsExternal Affairs
Manager+44 7775 547365gavin.roberts@bhge.com
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