MDR McDermott International Inc

Energy-focused engineering and construction firm McDermott International (MDR) announced that one of its units has received a pipeline contract from Mexico’s state oil monopoly Petroleos Mexicanos, or Pemex. The deal, valued at $50 million, calls for McDermott to procure, build and install three oil and gas pipelines in the Bay of Campeche.

Sitting in approximately 170 feet of water, the field development project will join the Kambesah Wells Recoverer Structure to Kutz TA and Ixtoc-A platforms.

The contract – to be managed by McDermott’s Altamira, Mexico fabrication facility – will be supported by the company's Houston subsea engineering team and encompass oil and gas pipelines ranging from 8 inches to 20 inches in diameter.

The Texas-based engineering-to-project management service provider is due to commence pipeline installation during the second quarter of 2011, with the fabrication of risers, clamps and guards, subsea tie-in assembly, and platform piping scheduled to follow.

McDermott’s DB16 – a dynamically positioned, shallow and deepwater combination barge with the flexibility of installing structures – will set up the pipelines, using a customized, onboard Automatic Welding System. The project will be included in the company’s order backlog for the second quarter and is likely to be completed by the end of the year.

McDermott, which currently retains a Zacks #3 Rank (short-term Hold rating), primarily serves the worldwide offshore oil and gas field developments, including front-end design and detailed engineering, fabrication and installation of offshore drilling and production facilities, as well as installation of marine pipelines and subsea production systems.

Additionally, the company provides project management and procurement services. It operates in most major offshore oil and gas producing regions, including the U.S., Mexico, Canada, the Middle East, India, the Caspian Sea and Asia Pacific.

In August 2010, McDermott completed the spin-off of its ‘Power Generation Systems’ and ‘Government Operations’ segments into a separate, independent and publicly traded company The Babcock & Wilcox Co. (BWC).

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