- McDermott’s demonstrated strong past performance on deepwater projects led to award from Reliance Industries in India
- Award for subsea installation contract to cover engineering, procurement, installation and pre-commissioning for deepwater development and modification work to interface with the new facilities
- The award builds on recent successful subsea projects in India
HOUSTON, Nov. 01, 2017 (GLOBE NEWSWIRE) -- McDermott International, Inc. (NYSE:MDR) today announced a letter of award for a significant* contract from Reliance Industries Ltd. for the KG-D6 subsea field development in the Krishna Godavari Basin, located off the east coast of India.
McDermott will provide engineering, procurement, installation and pre-commissioning of subsea flowlines, vent lines, and a pipeline-end manifold for connection with six subsea wells in the R-cluster field at a water depth of up to 6,890 feet (2,100 meters), including in-field pipelines, Monoethylene Glycol (MEG) line, pipeline-end terminals, jumpers, risers, umbilicals system and the modification of the control riser platform to interface with the new facilities.
“We look forward to working with Reliance on this important and challenging project and building on our recent experience and expertise in deepwater projects across the region,” said Hugh Cuthbertson, McDermott’s Vice President for Asia. “McDermott’s selection underscores the confidence and trust we’ve built with our customers to deliver challenging projects within budget and on schedule, like our recent success on ONGC’s Vashishta project.”
In addition to the R-Cluster of six subsea wells, the option for five to seven more subsea wells can be exercised by the client for an optional S-cluster package. The optional scope also consists of two additional subsea structures and flowlines at a water depth between 4,593 feet (1,400 meters) and 5,905 feet (1,800 meters).
McDermott plans to leverage its significant experience and presence within India including its Engineering Center of Excellence office in Chennai providing engineering and project management oversight for the project. The Company also plans to use its successful One McDermott Way approach with support from its office in Kuala Lumpur, Malaysia and key vessels from its global marine fleet.
The significant lump sum contract award is expected to be reflected in McDermott’s fourth quarter 2017 backlog. The contract is scheduled for completion by the second quarter of 2020 for the base scope, and the first quarter of 2021 for the optional scope.
Reliance is developing deepwater gas and oil fields in the KG-D6 block (more commonly called KG-D6) in the Krishna Godavari Basin offshore on the east coast of India. The north-western boundary of the block is about 24 to 37 miles (40-60 kilometers) southeast of Kakinada in water depth of between 1,312 feet (400 meters) and 7,545 feet (2,300 meters). R-Cluster and Satellite-Cluster discoveries are in the KG-D6 block. Reliance is planning to develop these discoveries in phases.
* - McDermott defines a significant contract as between USD $250 million and USD $500 million.
About McDermott
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 customers include national and major energy companies. Operating in approximately 20 countries across the world, our locally focused and globally integrated resources include approximately 12,400 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. 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 Statement
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: 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 business partners, difficulties executing on the project and changes in industry norms. 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 Relations
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