McDermott Awarded Large Contract Amendment by Al-Khafji Joint Operations for a Kuwait Offshore Platform
By Business Wire News
By Business Wire News
McDermott International, Inc. (NYSE: MDR) announced today that it has received a large contract amendment from Al-Khafji Joint Operations (KJO) for a platform in the Hout field, located 26 miles east of Al-Khafji in the divided zone between Kuwait and the Kingdom of Saudi Arabia.
Work on the brownfield project is expected to be executed through the second quarter of 2017 and is included in McDermott’s first quarter 2015 backlog.
The large contract amendment is an addition to the initial scope for KJO’s Hout project awarded to McDermott in March 2012. The original scope was for an engineering, procurement, construction and installation (EPCI) project for structures including a tripod jacket, deck and flare tower and some 26 miles of 24-inch subsea pipeline. Additionally, McDermott was to carry out modifications to a number of existing platforms in the Hout field through its dedicated brownfield division in Jebel Ali.
“This award is a customer relationship success story,” said Tom Mackie, McDermott’s Vice President, Middle East. “We have always strived to deliver the best production solution to KJO and today’s award demonstrates continued confidence in McDermott’s capabilities.
“McDermott wins on our ability to deliver a differentiated, full scope EPCI solution for brownfield or greenfield projects to enhance the safety, operability and maintainability of our customer’s facilities. These unique capabilities set us apart for the large contract amendment at KJO’s Hout brownfield production facility.”
The scope includes EPCI for one new platform and two bridges with a total weight of approximately 3,300 tons, including significant modifications at the existing complex.
Engineering is expected to be carried out by McDermott’s detailed engineering teams. Structures are scheduled to be fabricated at the Company’s Dubai-based fabrication facility. Vessels from the McDermott global fleet are scheduled to undertake the installation work.
McDermott is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. The Company delivers fixed and floating production facilities, pipelines 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 clients include national and major energy companies. Operating in more than 20 countries across the world, our locally focused and globally integrated resources include approximately 13,400 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 is 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, please visit our website at www.mcdermott.com.
FORWARD LOOKING STATEMENTS
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott International, Inc. cautions that statements in this press release which are forward-looking and provide other than historical information involve risks and uncertainties that may impact McDermott’s actual results of operations. The forward-looking statements in this press release include, among other things, the expected value, scope, execution, and timing associated with this project. Although McDermott’s management believes that the expectations reflected in those forward-looking statements are reasonable, McDermott can give no assurance that those expectations will prove to have been correct. Those statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including without limitation, changes in project design or schedules, contract cancellations, change orders and other modifications, and difficulties executing on the project. 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 report on Form 10-K for the year ended December 31, 2014. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
McDermott International, Inc.
Darcey Matthews, +1-281-870-5147
V.P., Investor Relations
Richard Goins, +1-281-870-5932
Director, Global Communications
Rissa Rosmawati, +971.4.804.3293
Middle East Communications