McDermott International, Inc. (NYSE:MDR) today announced a
substantial* contract award from Mærsk Olie og Gas A/S (Maersk Oil)
for engineering, procurement, construction and commissioning (EPCC)
services for the Tyra Redevelopment project, located offshore in
the Danish sector of the North Sea.
“This award heralds our return to the North Sea and is a part of
our strategic growth strategy,” said Scott Munro, Vice President of
Americas, Europe and Africa. “By executing our part of the Tyra
Redevelopment project from Kuala Lumpur and Batam, the project
showcases our vertically integrated One McDermott Way approach to
project execution and delivery, which demonstrates our global
engineering and fabrication capabilities. This is one of several
projects executed in this way. We have had a long relationship with
Maersk Oil, and are committed to ensuring the efficient use of
resources to meet their needs for a safe, on-schedule, within
budget project, and one that fully meets the stringent requirements
for automation and corrosion resistance, ensuring a long and
productive life for the new facilities.”
McDermott will provide engineering, procurement and construction
for two separate work packages for Maersk Oil under the
redevelopment project. With a combined weight of all structures
provided by McDermott at nearly 32,000 tons (29,000 metric tons),
the scope of work represents one of the largest combined projects
for McDermott in the North Sea.
McDermott plans to perform project management, engineering and
supply chain management from its office in Kuala Lumpur, Malaysia
and will fabricate and assemble the structures at its fabrication
yard at Batam Island, Indonesia.
Work on the contract is expected to begin early next year and
the lump sum contract will be reflected in McDermott’s fourth
quarter 2017 backlog. McDermott is scheduled to complete its work
packages for sail-away by February 1, 2020 and February 1,
2021.
Project DetailsOne McDermott work package
consists of Tyra East G platform’s gas processing topside of
approximately 18,188 tons (16,500 metric tons) and includes two 328
foot (100 meter) connecting bridges, of 468 and 771 tons (425 and
700 metric tons) respectively, and a 449 foot (137-meter-long)
flare.
The other McDermott work package consists of two wellhead
topsides for Tyra East B and Tyra East C at 1,763 and 1,366 tons
(1,600 and 1,240 metric tons) respectively; a 2,480 ton (2,250
metric ton) riser topside at Tyra East E; two wellhead topsides for
Tyra West B and Tyra West C at 1,421 and 1,488 tons (1,290 and
1,350 metric tons) respectively; and a riser topside at 335 tons
(304 metric ton) at Tyra West E. Also included are four connecting
bridges ranging from 60 to 1,102 tons (55 to 1,000 metric tons).
McDermott will also fabricate six module support frames (MSF)
totaling 1,289 tons (1,170 metric tons) to raise the existing
platforms 42 feet (13 meters) to account for seabed subsidence. The
existing four wellheads and two riser topsides along with the old
bridges will be removed by others while retaining the original
jackets to accept the new topsides with their
MSFs.
Located approximately 139 miles (225 kilometers) west of
Esbjerg, Denmark in the North Sea, the Tyra gas field is located in
blocks 5504/11 and 12 and is the center of Denmark’s national
energy infrastructure, processing 90 percent of the nation’s gas
production. First production was from the field in
1984.
* - McDermott defines a substantial contract as between USD $500
million and USD $750 million.
About McDermott
McDermott is a leading provider of integrated engineering,
procurement, construction and installation (“EPCI”), front-end
engineering and design (“FEED”) and module fabrication services for
upstream field developments worldwide. McDermott delivers fixed and
floating production facilities, pipelines, installations 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 12,000 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,
and shares of its common stock are listed on the New York Stock
Exchange. 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 & Marketing+1
281.253.9005amorgan@mcdermott.com
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/0cba6a2f-5c02-4a8f-969d-e2b1b8d506e9
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