- McDermott offers most efficient & technically sound solution
- Builds on customer confidence established with completion of complex PB Litoral A project and infrastructure for the Ayatsil Field
HOUSTON, June 27, 2016 (GLOBE NEWSWIRE) -- 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.