McDermott Awarded Offshore EPCI Contract by Saudi Aramco

  • Aug 01, 2019
  • PR Newswire

HOUSTON, Aug. 1, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced it has been awarded a large* contract by Saudi Aramco to provide engineering, procurement, construction and installation (EPCI) of a production deck module (PDM) in the Hasbah gas field with hook-up and modification works in Saudi Arabia's Karan fields located offshore in the Arabian Gulf.

The scope of work includes EPCI of Wellhead PDM for four wells, 3.75 miles (6 kilometres) of 16-inch corrosion resistant alloy (CRA) cladded flowline, 4 miles (6.5 kilometres) of subsea umbilical cable, offshore tie-ins to existing facilities and electrical modifications to existing PDMs.

"This award is confirmation that the McDermott execution model we call the One McDermott Way gives clients confidence that we consistently deliver quality," said Linh Austin, Senior Vice President, Middle East and North Africa.

Engineering of the project will be performed in Saudi Arabia and fabrication will take place at McDermott's Jebel Ali yard in the United Arab Emirates. Fabrication is expected to begin in the second quarter of 2020 and the contract award will be reflected in McDermott's third quarter 2019 backlog.

* - McDermott defines a large contract as between USD $50 million and USD $250 million.

McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.

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 or profitability, and about the expected value, scope and timing of 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, 2018 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.

Investor Relations

Scott Lamb

Vice President, Investor Relations

+1 832 513 1068

[email protected]

Global Media Relations

Gentry Brann

Senior Vice President, Communications, Marketing and Administration

+1 281 870 5269

[email protected]

Local Media Relations

Barbara Knight

Senior Director, Area Communications and Marketing

Middle East and North Africa (MENA)

+971 (0)4 804 3990

[email protected]