Source: McDermott International Inc.
HOUSTON, Dec. 22, 2017 (GLOBE NEWSWIRE) -- 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.
One 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.
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.
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, 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.
Vice President, Treasurer and Investor Relations
Global Media Relations
Director, Global Communications & Marketing
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/0cba6a2f-5c02-4a8f-969d-e2b1b8d506e9