McDermott Gets Long-Term EPCI Contract from Saudi Aramco - Analyst Blog
Oil and gas-focused engineering and construction firm McDermott International Inc. MDR announced that it has been awarded a long-term engineering, production, construction and installation (“EPCI”) contract by Saudi Aramco to operate in offshore Saudi Arabia.
The agreement, signed on Jun 10, is the second long-term deal between McDermott and Saudi Aramco. It determines the terms and conditions by which McDermott can bid for future EPCI contracts in the region. The company has been operating in the region for 45 years, which reflects its operational and technical success.
The previous long-term agreement between the parties has been in effect since Jun 28, 2007.
McDermott primarily serves the worldwide offshore oil and gas field developments. The company’s services include front-end design and detailed engineering. The firm also specializes in fabrication and installation of offshore drilling and production facilities. Moreover, the company installs marine pipelines and subsea production systems.
Additionally, the company provides project management and procurement services. McDermott operates in most of the major offshore oil and gas producing regions in the world. These include the U.S., Mexico, Canada, the Middle East, India, the Caspian Sea and the Asia Pacific.
The company is expected to benefit from new management, which is focused on cost improvements and streamlining of operations.
McDermott currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks from the broader energy sector include NuStar Energy L.P. NS, Cabot Oil & Gas Corporation COG and Noble Energy, Inc. NBL. All these stocks sport a Zacks Rank #1 (Strong Buy).
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