McDermott International, Inc. (NYSE: MDR) ("McDermott") announced today
that its Malaysian affiliate Berlian McDermott Sdn. Bhd. was recently
awarded a significant subsea contract for executing a deepwater
engineering, procurement, construction, transportation, installation and
commissioning project offshore Malaysia. The value of this contract is
included in McDermott's first quarter 2012 backlog.
The award is for the subsea infrastructure of the Siakap North - Petai
("SNP") Development Project operated by Murphy Sabah Oil Co., Ltd.
("Murphy"), comprising rigid flowlines, flexible risers, an umbilical
and subsea hardware and controls. The SNP field is located nearby the
existing Kikeh field, northwest of Labuan Island, Malaysia, in waters
3,900 - 4,900 feet deep.
"Our subsea engineering expertise, fabrication track record at our Batam
Island facility, state-of-the-art subsea construction vessels and
understanding of the Malaysian market, contributed to this successful
award," said Stephen M. Johnson, Chairman of the Board, President and
Chief Executive Officer of McDermott. "We look forward to delivering the
facilities for this important field development for Malaysia."
The SNP field architecture consists of two rigid, insulated,
pipe-in-pipe production flowlines, one rigid water injection flowline
and one main umbilical system connecting eight new manifolds and subsea
distribution units to existing riser slots on the Kikeh FPSO. The
development calls for five water injection and eight production wells,
drilled from the manifolds at each of the four drill center locations.
Detailed engineering and procurement for the project are underway, and
fabrication of PLETs, jumpers and other installation aids is expected to
begin in the third quarter of 2012. Following the infrastructure
installation, McDermott will undertake a comprehensive System
Integration Test of the subsea units and provide commissioning
assistance. The project scope is scheduled to be completed by the third
quarter of 2013.
McDermott is a leading engineering, procurement, construction and
installation group of companies focused on executing complex offshore
oil and gas projects worldwide. Providing fully integrated EPCI services
for upstream field developments, the Company delivers fixed and floating
production facilities, pipelines and subsea systems from concept to
commissioning. McDermott's customers include national and major energy
companies. Operating in more than 20 countries across the Atlantic,
Middle East and Asia Pacific, our integrated resources include
approximately 13,500 employees and a diversified fleet of marine
vessels, fabrication facilities and engineering offices. McDermott has
served the energy industry since 1923.
To learn more, please visit McDermott's website on the internet at www.mcdermott.com.
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 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,
2011. This news 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
McDermott International, Inc.
Investors, Analysts and Financial
Jay Roueche, (1) 281.870.5462
and General Media