HOUSTON, June 27, 2018 /PRNewswire/ -- McDermott
International, Inc. (NYSE: MDR) and Baker Hughes, a GE company
(NYSE: BHGE), today announced the award of a contract by POSCO
DAEWOO Corp. for phase two of the Shwe gas field development
offshore Western Myanmar.
The McDermott-led consortium took part in a FEED competition in
2017. The successful execution of the FEED followed by the
EPCIC tender led to the award of this project.
The EPCIC scope covers SURF and SPS for an eight-subsea-well
development at a water depth of between 279 feet (85 meters) and
466 feet (142 meters). It also covers brownfield modifications to
tie-back the new subsea facilities to the existing Shwe
platform.
"McDermott's strategic alliance with BHGE is a combination of
two leaders in subsea development," said Ian Prescott, McDermott Senior Vice President for Asia Pacific. "Together, we offer
comprehensive, cost-efficient and advanced technical solutions for
our customers. McDermott's expertise in executing large and complex
EPCIC projects in Asia will help
us deliver certainty during the next phase of this important gas
field development."
Graham Gillies, Vice
President-Subsea Production Systems & Services at BHGE, said,
"Cost efficiency and productivity are top priorities for our
customers and are fundamentally changing the way we work and
partner across the industry to deliver the solutions they need.
Through early engagement and close collaboration with POSCO DAEWOO,
the consortium was able to offer the optimum solution. This win
demonstrates the value the consortium can create through early
engagement with customers, adoption of standardized technology
solutions and efficiency of project
execution."
McDermott will undertake the EPCIC of SURF and brownfield
modification scopes, using its regional center of excellence for
project management and engineering in Kuala Lumpur, Malaysia. The SURF structures
and production manifolds will be fabricated in the Asia Pacific region. McDermott also will
execute the installation and commissioning phase, with Field
Service Engineering expertise and tooling support from BHGE's base
in Singapore. Installation of SURF and SPS components will be
carried out using McDermott's state of the art pipelay assets,
including the Derrick Lay Vessel 2000.
BHGE will supply the SPS scope, including eight Medium-water
Horizontal Xmas Trees (MHXT), eight subsea production control
systems and distribution equipment, and topside controls.
McDermott's portion of this award is classified as a large
*contract, which will be reflected in its second quarter 2018
backlog. The contract's final delivery is scheduled for
2022.
The Shwe field development consists of the Shwe, Shwe Phyu and Mya offshore gas fields, located
in blocks A-1 and A-3 of the Bay of Bengal, Myanmar. The project is operated by POSCO
DAEWOO Corp. and is being developed by a consortium of five
companies, including POSCO DAEWOO Corp., Myanma Oil and Gas
Enterprise, Oil and Natural Gas Corp. Videsh Limited, Gas Authority
of India and Korea Gas
Corporation.
* - McDermott defines a large contract as between USD
$50 million and USD $250 million.
About McDermott
McDermott is a premier, fully integrated provider of technology,
engineering and construction solutions to the energy industry. For
more than a century, customers have trusted McDermott to design and
build end-to-end infrastructure and technology solutions—from the
wellhead to the storage tank—to transport and transform oil and gas
into the products the world needs today. Our proprietary
technologies, integrated expertise and comprehensive solutions
deliver certainty, innovation and added value to energy projects
around the world. Customers rely on McDermott to deliver certainty
to the most complex projects, from concept to commissioning. It is
called the "One McDermott Way." Operating in over 54 countries,
McDermott's locally focused and globally-integrated resources
include approximately 40,000 employees and engineers, a diversified
fleet of specialty marine construction vessels and fabrication
facilities around the world. To learn more, visit
www.mcdermott.com.
About BHGE
Baker Hughes, a GE company (NYSE:BHGE) is the world's first and
only fullstream provider of integrated oilfield products, services
and digital solutions. We deploy minds and machines to enhance
customer productivity, safety and environmental stewardship, while
minimizing costs and risks at every step of the energy value chain.
With operations in over 120 countries, we infuse over a century of
experience with the spirit of a startup – inventing smarter ways to
bring energy to the world. Visit us at BHGE.com.
Forward-Looking Statements
In 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 the expected scope, execution
and timing of 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,
2017 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.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1
281-870-5269
Gentry.Brann@McDermott.com
Local Asia Contact
Philip Ng
Communications Manager, Asia
+6017 200 4238 (mobile, Kuala Lumpur,
Malaysia)
Fng2@McDermott.com
Baker Hughes, a GE company (BHGE)
Media Relations
- Chris Lim, +65 68646264,
chris.lim@bhge.com
- Gavin Roberts, +44 1224 349679,
gavin.roberts@bhge.com
Investor Relations:
Philipp
Mueller, +1 281 809 9088, investor.relations@bhge.com
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SOURCE McDermott International, Inc.