McDermott International, Inc. (NYSE: MDR) ("McDermott") announced today
that one of its subsidiaries has been awarded an engineering,
procurement and construction (EPC) contract by Exxon Mobil Corporation
for its Julia development. The value of the contract is included in
McDermott's second quarter 2013 backlog.
The Julia field is located approximately 265 miles southwest of New
Orleans in the Gulf of Mexico Walker Ridge area in water depths of
approximately 7,000 feet. The Julia Phase I project is a subsea tie-back
to a semi-submersible floating production unit and the scope includes
six subsea wells, one six-slot manifold, two umbilicals, six jumpers,
two flowlines with two steel catenary risers, two subsea pump modules
and topsides support equipment. Production will flow through two 10-inch
production flowlines with subsea single-phase boost pumps. Exxon Mobil
Corporation, the operator, and Statoil each hold a 50 percent interest
in the Julia field development.
"McDermott offered a very competitive solution for the Julia project
with the right people, assets and technology, based on our experience
with a similar deepwater Gulf of Mexico subsea tie-back project that we
were awarded in 2011," said Stephen M. Johnson, Chairman, President and
Chief Executive Officer of McDermott. "The Julia subsea infrastructure
requires a high level of engineering design and construction work, a key
component of which is high-specification welding to help ensure
long-term integrity and reliability of the subsea facilities. The
installation solution we offer provides a high degree of reliability and
precision using key vessels in our fleet for deepwater lowering and
flexible lay, and further demonstrates our commitment to the subsea
McDermott will undertake engineering, procurement and construction of
the jumpers, four suction piles associated with the manifold, subsea
pump, pump transformer and Subsea Distribution Unit /Umbilical
Termination Assembly, as well as the transportation and installation of
the manifold, suction piles, flying leads, subsea pump system, the power
and control umbilicals and SDU/UTAs. McDermott will also carry out
testing of the tie-back system and mechanical completion before hand
over to the customer.
McDermott expects to successfully execute this high?profile project
employing its in?house expertise and capabilities for subsea
engineering, high?spec fabrication and subsea installation. Work will
commence with immediate effect in our Houston office.
McDermott deepwater installation vessel Derrick Barge 50 is expected to
undertake the installation of suction piles and subsea equipment,
including the manifold, pump station and transformer. The vessel's new
deepwater lowering system has the capability to lower loads of up to 480
tons to depths of up to 11,500 feet.
In addition, North Ocean 102 (NO102) is scheduled to transport and
install umbilicals, flying leads and jumpers. NO102 is a fast-transit
vessel with horizontal carousel. Recent improvements include
installation of a high-capacity flexible-lay system to enable ultra
deepwater installation work - comprising a 330-ton top-tension flex-lay
tower, with 275-ton active heave compensation crane and 330-ton hang-off
clamp capable of lowering loads to a depth of 10,000 feet.
The offshore installation campaign is expected to begin second quarter
of 2015 and extend through 2015.
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 14,000 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 online 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, value, 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
schedule, contract cancellation, 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, 2012 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.
Investors, Analysts and Financial
Steve Oldham, (1) 281-870-5147
& General Media
Louise Denly, (1) 281-870-5025
Burnley, (44) 1372.846431