McDermott Wins Saudi-Kuwaiti Deal - Analyst Blog
22 March 2012 - 5:44AM
Zacks
Energy-focused engineering and construction firm
McDermott International (MDR) announced that one
of its units has received a full engineering, procurement,
construction, and installation (“EPCI”) of a platform for Al-Khafji
Joint Operations (KJO) in Hout development – an oilfield shared by
Saudi Arabia and Kuwait.
The deal – whose financial terms were not disclosed – calls for
McDermott to provide the full spectrum of engineering and
construction services from its fabrication division in Jebel Ali,
UAE. The company is scheduled to fabricate and set up more than 600
metric tons of structures that consist of a tripod jacket, deck and
flare tower, along with 42 kilometers of 24-inch subsea
pipeline.
Additionally, McDermott will also perform modification works on
various existing platforms in the Hout field, where the average
water depth is 31 meters (102 feet).
Hout – part of the Al-Khafji project – is one of the numerous
offshore Neutral Zone fields that churn out a combined volume of
about 350,000 barrels per day. The Texas-based
engineering-to-project management service provider expects to
commence installation work during the third quarter of 2013.
The order is part of McDermott’s strong and longstanding
relationship with KJO that dates back to the mid 1960’s. In fact,
the company sees the KJO award as recognition of its deep
understanding of the field requirements, helping it to offer the
most favorable solution for this project.
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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