McDermott to offer EPFC for crude oil storage tanks in Texas

McDermott International has been awarded a contract to deliver engineering, procurement, fabrication and construction (EPFC) services for six floating roof crude oil tanks in Texas.

The contract was awarded by an undisclosed oil and gas operator. The value of the contract is expected to range between $1m and $50m.

Among the six storage tanks, four of them operate at a 500,000bbl capacity and two at 250,000bbl.

The company said that these tanks will be part of an energy infrastructure project connecting West Texas’ Permian Basin to Gulf Coast.

Work under the contract will be carried out at McDermott’s Houston Fairbanks office and fabrication facility.

According to the company, all the activities included in the contract will be performed by CB&I Storage Solutions.

CB&I Storage Solutions senior vice-president Cesar Canals said: “We have a strong track record of providing world-class storage solutions for major energy infrastructure projects all over the world.

“This new award is a testament to our service offerings and capabilities, including our vast experience in engineering, fabricating and constructing complex, large-scale storage tanks.”

McDermott noted that the contract award will be reflected in the company’s second-quarter 2019 backlog.

In September 2019, McDermott announced plans to explore ‘strategic alternatives’ for its Lummus Technology unit after receiving ‘unsolicited approaches’ to purchase all or a portion of the business, valuing it at $2.5bn.

Operating in 54 countries, McDermott employs a team of approximately 42,000 employees and has a fleet of speciality marine construction vessels and fabrication facilities worldwide.