McDermott International, Inc. (MDR) (“McDermott”) announced today that one of its subsidiaries was awarded an Engineering, Procurement, Construction and Installation (EPCI) project for a customer in the Arabian Gulf. The value is approximately US$ 200 million and will be included in McDermott’s fourth quarter 2013 backlog.
The contract includes the fabrication, transportation and installation of offshore facilities including two production deck modules and ten observation platforms. The scope also includes works for two subsea pipeline installations, three submarine power cables and two fiber optic cables.
“Engineering work will be undertaken by the Dubai and Al Khobar offices, with construction and transportation from its Jebel Ali fabrication facility,” said Stewart Mitchell, Senior Vice President and General Manager, Middle East & Atlantic. “This project is a continuation of work we have previously completed for the same Client in the same field. Knowledge and experience gained over the years will give us a greater insight into the field characteristics and project execution requirements. We are pleased that our Client has shown continued confidence in McDermott with this award.”
Installation will be carried out using vessels from its global fleet which are expected to mobilize in the end of the second quarter of 2014. Project completion, including hookup and commissioning, is expected during the first quarter of 2015.
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, McDermott’s integrated resources include more than 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 http://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 value, scope, execution and timing associated with this project. 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 schedule, contract cancellation, 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, 2012 and subsequent quarterly reports on Form 10-Q. This news release reflects management's view 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.