McDermott Receives Letter Of Award For EPCI Contract For Offshore Redevelopment Project In The Middle East

  • Letter of award for significant contract for engineering, procurement, construction and installation services for an offshore redevelopment project
  • McDermott to fabricate and install four wellhead topsides, a manifold platform and jacket with associated subsea pipelines and brownfield tie-in works
  • The award of the next phase of this project is a strong testament to McDermott's ability to combine the right offshore assets and superior execution strategy

HOUSTON, Nov. 01, 2017 (GLOBE NEWSWIRE) -- McDermott International, Inc. (NYSE:MDR) announced today a letter of award for a significant * contract for the engineering, procurement, construction and installation (EPCI) services for an offshore Middle East redevelopment project.

McDermott plans to fabricate and install four wellhead topsides, a manifold platform and jacket together with associated subsea pipelines and brownfield tie-in works. The combined total weight of the structures is approximately 7,000 tons (6,400 metric tons) and includes 47 miles (75 kilometers) of onshore and offshore pipeline and umbilicals.

"McDermott has been working in the Middle East region for 54 years and has a proven track record of executing complex offshore projects with certainty. The award of this redevelopment contract is a strong testament to our ability to combine the right offshore assets and superior execution strategy," said Linh Austin, McDermott Vice President, Middle East and Caspian.

McDermott has a long-standing relationship with this client and vast experience in this field. This award builds on the successful delivery of four jackets in 2016 as part of an earlier phase in the redevelopment project.

Fabrication work is expected to begin in the third quarter of 2018 and offshore installation is planned to begin in the second quarter of 2019. The contract award is expected to be reflected in McDermott's 2017 fourth quarter backlog.

* - McDermott defines a significant contract as between USD $250 million and USD $500 million.

About the CompanyMcDermott 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 StatementsIn 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: 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, 2016 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.

McDermott International, Inc.

Investor RelationsTy Lawrence Vice President, Treasurer and Investor Relations +1 281.870.5147 tplawrence@mcdermott.com

Global Media RelationsAdam MorganDirector, Global Communications+1 281.253.9005 amorgan@mcdermott.com

Local Media RelationsBarbara Knight Head of Communications & MarketingMiddle East & Caspian +974.4.028.4500 bbknight@mcdermott.com

 

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