- Significant award for major subsea project off the East coast of India
- McDermott and L&T Hydrocarbon Engineering consortium provide best in-market execution solution
- Greenfield deepwater award marks McDermott return to India
HOUSTON and CHENNAI, India, Dec. 21, 2015 (GLOBE NEWSWIRE) -- McDermott International, Inc. (NYSE: MDR ) announced today that a consortium of McDermott and L&T Hydrocarbon Engineering (LTHE), a wholly owned subsidiary of Indian conglomerate Larsen & Toubro, was awarded a contract covering the engineering, procurement, construction and installation of major subsea field infrastructure for the Vashishta and S1 Development Project, a greenfield deepwater development off India’s East coast.
The scope of work includes supply and installation of a series of pipeline end terminations (PLETs) and in-line tee structures (ILT), a pipeline end manifold structure (PLEM), rigid jumpers and approximately 30 miles of umbilicals. The pipeline scope includes 64 miles of 14-inch dual rigid pipelines extending from the shallow water shore line to a maximum water depth of 2,300 feet.
“This award confirms the success of a strong consortium focused on delivering the best in-market solution for ONGC,” said David Dickson, McDermott’s President and Chief Executive Officer. “The combination of our best in class, deepwater, shallow water and onshore assets and capabilities created a compelling value proposition and also maximized the amount of work that will be undertaken in India. We look forward to working seamlessly with LTHE in delivering flawless execution for ONGC.”
“This collaborative consortium created value by utilizing LTHE’s strong execution capabilities and strategically located Kattupalli facility for fabrication, setting up a local spoolbase, and generating schedule efficiency by using a combination of deepwater reel-lay and S-lay in shallow water,” said Hugh Cuthbertson, McDermott’s Vice President, Asia. “In addition to the deployment of McDermott’s modular, portable spoolbase, McDermott’s Derrick Barge 30 (DB30) and deepwater North Ocean 105 (NO105) are also expected to be utilized.”
McDermott has a long history of working with ONGC, dating to the late 1970s, when McDermott installed the first offshore platform in Bombay High. More recently, McDermott successfully completed the engineering, procurement, construction and installation for the Cluster 7 wellhead project in May 2013.
The award will be included in McDermott’s 4Q 2015 backlog.
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 clients include national and major energy companies. Operating in more than 20 countries across the world, our locally focused and globally integrated resources include approximately 10,300 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 is 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, 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, the expected value, scope, execution and timing associated with the project discussed in this press release and the expected benefits and value resulting from the consortium. 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, 2014 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 Darcey Matthews, 281.870.5147 Vice President, Investor Relations dmatthews@mcdermott.com Media Relations Richard Goins, 281.870.5932 Director, Global Communications rgoins@mcdermott.com Asia Area Communications Juliana Tan, (65) 6668.5428 Asia Area Communications yjtan@mcdermott.com
