HOUSTON, June 5, 2019 /PRNewswire/ -- McDermott
International, Inc. (NYSE: MDR) today announced that CCS JV, a
joint venture between McDermott, Saipem and Chiyoda, has reached
full agreement for a contract with Anadarko Petroleum Corporation
for the Mozambique Area 1
Liquefied Natural Gas (LNG) Development.
CCS JV's project scope includes the onshore engineering,
procurement and construction (EPC) for all components of the
onshore LNG development, which includes two LNG trains with a total
nameplate capacity of 12.88 million tonnes per annum (MTPA), plus
the associated utilities and infrastructure. Previously, CCS JV
provided front-end engineering design (FEED) services for this LNG
development.
McDermott's initial portion of the EPC contract award is
approximately $2 billion.
"LNG is helping to shape an entirely new era of energy
solutions, and McDermott is playing a significant role in this
global shift," said Tareq Kawash,
McDermott's Senior Vice President for Europe, Africa, Russia and Caspian.
"The Area 1 Mozambique LNG project will build on McDermott's
industry-leading experience and demonstrate our ability to deliver
comprehensive EPC solutions globally for world-scale LNG
developments," said Samik Mukherjee,
McDermott's Group Senior Vice President, Projects.
McDermott and Saipem have established a new office in
Milan, Italy, where a team from
both companies will lead the project management, engineering and
procurement in advance of sharing on-site construction management
responsibilities. McDermott will perform engineering from both
London and Gurgaon, India. Chiyoda will only provide advisory
services for the joint venture. Work at the site is expected to
commence when Anadarko issues a Notice to Proceed after it takes a
Final Investment Decision (FID).
As the operator of Offshore Area 1, Anadarko is the primary
project sponsor. Additional sponsors include ENH Rovuma Área Um,
S.A, Mitsui E&P Mozambique Area1 Ltd., ONGC Videsh Ltd., Beas
Rovuma Energy Mozambique Limited, BPRL Ventures Mozambique B.V.,
and PTTEP Mozambique Area 1 Limited.
The contract award will be reflected in McDermott's backlog once
Anadarko approves FID, which is expected in June 2019.
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 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 32,000
employees, a diversified fleet of specialty marine construction
vessels and fabrication facilities around the world. As used in
this press release, McDermott includes McDermott International,
Inc. and its subsidiaries and affiliates. To learn more, visit
www.mcdermott.com.
About Saipem
Saipem is a leading company in
engineering, drilling and construction of major projects in the
energy and infrastructure sectors. It is "One-Company" organized in
five business divisions (Offshore E&C, Onshore E&C,
Offshore Drilling, Onshore Drilling and XSight, dedicated to
conceptual design). Saipem is a global solution provider with
distinctive skills and competences and high-tech assets, which it
uses to identify solutions aimed at satisfying customer
requirements. Listed on the Milan Stock Exchange, it is present in
over 60 countries worldwide and has 32 thousand employees of 120
different nationalities.
About Chiyoda
Chiyoda Corporation, is a
world-leading, fully integrated international engineering company
and EPC contractor. Since its founding in 1948, Chiyoda has
provided engineering, procurement, construction, operation and
maintenance services in a wide range of business fields including
oil & gas, chemicals and petrochemicals in over 60 countries
around the world.
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 backlog, to the extent backlog may be
viewed as an indicator of future revenues or profitability,
statements about the expected value, scope, execution and timing of
the project discussed in this press release and statements about
the expected timing of FID for the project. 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, 2018 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
Senior Vice President, Communications, Marketing and
Administration
+1 281-870-5269
Gentry.Brann@McDermott.com
Local Area Media Relations
Zoe Keenan
Communications Manager
Europe, Africa, Russia and Caspian
+447917581727
zakeenan@mcdermott.com
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SOURCE McDermott International, Inc.