- Award recognizes McDermott’s unique combination of experience and proven performance
- McDermott leverages unmatched record of demonstrated cost and schedule performance in offshore Saudi Arabia
- Eighth EPCI project awarded from Aramco since 2015
DUBAI, Jan. 25, 2017 (GLOBE NEWSWIRE) -- 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 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 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 STATEMENTS
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, 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.