McDermott International : McDermott Awarded Two Contracts for Tendon Buoyancy Modules & West Africa Platforms
05/31/2012| 08:05am US/Eastern
McDermott International, Inc. (NYSE: MDR) ("McDermott") announced today
that one of its subsidiaries has been awarded a fabrication contract for
components of a deepwater platform in the Gulf of Mexico, by Heerema
Marine Contractors Nederland BV.
McDermott will construct 16 tendon buoyancy modules ("TBMs") for the
deepwater project, which will be used during offshore installation of
the platform, approximately 225 miles south of New Orleans in waters up
to 5,185 feet deep.
"McDermott's high quality fabrication procedures for deepwater projects
meet the demanding customer specifications for delivery of structures,"
said Stephen M. Johnson, Chairman, President and Chief Executive Officer
of McDermott. "Additionally, our HSES practices are closely aligned with
the stakeholders on the project team," said Johnson.
McDermott will carry out procurement, fabrication and loadout of the TBM
structures from its Morgan City facility in Louisiana. Consisting of an
upper and lower module, each TBM is designed to be interchangeable as
either an upper or a lower module. Fabrication work is expected to
commence during the second quarter of 2012.
A McDermott subsidiary has also been awarded a design engineering and
procurement management contract, by VAALCO Gabon Inc., for the Etame
platform and a design engineering contract for a potential Southeast
Etame / North Tchibala (SEENT) platform, both located offshore Gabon,
"McDermott's Houston-based engineering teams have a track record of
designing structures for the West Africa market," said Johnson. "Our
early planning activities and knowledge of the technical issues that may
arise during the design scope, coupled with our unique understanding of
fabrication and installation constructability requirements, allowed us
to develop a robust design proposal for VAALCO," said Johnson.
The new oil and gas wellhead production platform(s) will be
located in the Etame Marin block off the coast of Gabon and will be
engineered to produce oil and gas.
VAALCO has requested McDermott's engineering team to design a safe,
reliable and predictable production facility that will minimize
operational and maintenance issues. It is anticipated that engineering
activities will be supported by a combination of technical and
commercial personnel focused on identifying and specifying the materials
and services necessary to help ensure project execution excellence.
Detailed engineering is already underway at the McDermott Houston
The values of both these contract awards will be included in McDermott's
second quarter 2012 backlog.
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.
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 scope, execution and timing associated with
these projects. 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 projects. 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 and subsequent quarterly reports on Form 10-Q. 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 statement.
McDermott International, Inc.
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