McDermott International, Inc. (NYSE: MDR) (“McDermott” or the “Company”) announced today that one of its subsidiaries has received a letter of award for a turnkey contract for the PB-Litoral-A production platform for PEMEX Exploracion y Produccion in the Litoral Tabasco Tsimin-Xux fields. The value is approximately US$230 million and will be included in McDermott's fourth quarter 2012 backlog. “This project reaffirms our Altamira, Mexico fabrication facility as a key player for both domestic and international offshore construction projects,” said Steven W. Roll, Vice President and General Manager, Atlantic region. “Our investments in Altamira are beginning to show dividends as we continue to grow the facility and supporting resources in this strategic location.” McDermott’s global resources support turnkey engineering, procurement, construction and installation (“EPCI”) solutions and offer PEMEX the most competitive solution for the PB-Litoral-A production platform. Coupled with the Company’s broad experience designing and fabricating crude oil conditioning facilities, McDermott’s advanced float-over technology for heavy topsides is a reliable and cost-effective method for topside installation and the Company’s proven track-record speaks for its consistency to deliver. The PB-Litoral-A project scope includes front end engineering design, detailed engineering, procurement, fabrication, load-out, sea fastening, transport, installation, hook-up, commissioning and start-up of an eight-legged 1,800-tonne jacket, 4,500-tonne topsides and 2,000 tons of tripods, bridges and piles. The total weight of the facility is approximately 8,300 tonnes. McDermott will also provide training to PEMEX personnel for operation and maintenance of the facility once commissioned. Engineering work is expected to begin in early 2013 by McDermott’s Houston and Chennai engineering offices, with fabrication at Altamira, Mexico, where at peak, more than 550 craft personnel are expected to be engaged on the project. McDermott will carry out installation of the topsides by the float-over method using its Intermac 600 float-over barge, and the recently upgraded and improved McDermott Derrick Barge 50 will install key platform components and provide additional support.
In addition to the PB-Litoral-A scope, McDermott will undertake bridge and piping tie in, as well brownfield work on the CA-Litoral-A HP compression platform.Full project completion is expected during the second quarter of 2015. ABOUT McDERMOTT McDermott is a leading engineering, procurement, construction and installation group of companies focused on executing complex offshore oil and gas projects worldwide. Providing fully integrated EPCI services for upstream field developments, the Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning. McDermott’s customers include national and major energy companies. Operating in more than 20 countries across the Atlantic, Middle East and Asia Pacific, our integrated resources include approximately 13,500 employees and a diversified fleet of marine vessels, fabrication facilities and engineering offices. McDermott has served the energy industry since 1923. To learn more, please visit McDermott’s website on the internet at www.mcdermott.com FORWARD LOOKING STATEMENTS In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott International, Inc. cautions that statements in this press release which are forward-looking and provide other than historical information involve risks and uncertainties that may impact McDermott's actual results of operations. The forward-looking statements in this press release include, among other things, the expected scope, execution and timing associated with this project, and the continued growth of McDermott’s Altamira facility and supporting resources. Although McDermott's management believes that the expectations reflected in those forward-looking statements are reasonable, McDermott can give no assurance that those expectations will prove to have been correct. Those statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including without limitation, changes in project design or schedules, contract cancellations, change orders and other modifications, and difficulties executing on the project. 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 report on Form 10-K for the year ended December 31, 2011 and subsequent quarterly reports on Form 10-Q. This news 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.