- Five-year agreement aims to increase local content for projects in Qatar
- McDermott serves as prime contractor and leads engineering, procurement and installation; N-KOM serves as subcontractor and performs fabrication
- Cooperation adds to McDermott’s existing fabrication capacity in the Middle East
HOUSTON, July 26, 2016 (GLOBE NEWSWIRE) -- McDermott International, Inc. (NYSE: MDR ) and Nakilat-Keppel Offshore Marine (N-KOM), announced today a Memorandum of Understanding for an exclusive cooperation agreement to pursue offshore engineering, procurement, construction and installation (EPCI) projects within Qatari waters.
Under the five-year agreement, McDermott and N-KOM, the joint venture shipyard between Qatar’s Nakilat and Keppel Offshore & Marine, will develop an integrated approach to projects in Qatar by leveraging McDermott’s proven track record in offshore EPCI projects and N-KOM’s world-class ship repair and offshore construction facility at the Erhama Bin Jaber Al Jalahma Shipyard, strategically located in Qatar. McDermott will serve as prime contractor to customers and lead engineering with its teams based in Dubai as well as its Global Engineering Center in Chennai, India where necessary. McDermott will also lead procurement and installation with vessels mobilized from its global marine fleet. N-KOM will serve as subcontractor and perform fabrication from its Qatar facility.
“Through this exclusive agreement, McDermott and Keppel build upon our long-standing relationship to combine each company’s strengths to benefit our clients in Qatar and increase Qatari local content,” said Linh Austin, McDermott’s Vice President, Middle East. “With both our Dubai- and Saudi-based facilities, McDermott is well positioned to address the continued growth for the entire Middle East market. And now with this cooperative agreement, we have an even higher level of capacity and availability.”
Qatar continues to be a key growth region for McDermott. Over the past 20 years, McDermott has fabricated more than 80% of the North Field gas infrastructure.
“McDermott has been involved in all major offshore developments in Qatar over the last 50 years and we look forward to furthering our strong working relationships,” added Austin.
“We are pleased to partner with McDermott, one of the leading EPCI contractors in this region, to enhance our standing as a premier marine and offshore service provider in Qatar,” said Eng. Abdullah Fadhalah Al Sulaiti, Managing Director of Nakilat. “N-KOM has delivered several offshore construction projects, including a newly built liftboat. This agreement will add value to our services in this area to better support the local oil and gas industry in Qatar.”
ABOUT McDERMOTT McDermott (NYSE: MDR ) is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. McDermott 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 11,200 employees and contractors, 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, visit www.mcdermott.com .
ABOUT NAKILAT Nakilat is a Qatari LNG transport company providing an essential transportation link in the State of Qatar’s LNG supply chain. Its LNG shipping fleet is the largest in the world, comprising of 63 LNG vessels. Nakilat also manages and operates four large LPG carriers. Nakilat operates the ship repair and construction facilities at Erhama Bin Jaber Al Jalahma Shipyard in Ras Laffan Industrial City via two strategic joint ventures: N-KOM and NDSQ. Nakilat also offers a full range of marine support services to vessels operating in Qatari waters. For more information, visit: www.nakilat.com.qa
ABOUT N-KOM Established in 2007, N-KOM is a joint venture between Qatar's premier gas shipper Nakilat and leading offshore rig constructor and ship repairer Keppel Offshore & Marine Ltd. From its strategic location within the world-class Erhama Bin Jaber Al Jalahma Shipyard complex, N-KOM offers a comprehensive range of repair, conversion, maintenance and fabrication services for marine vessels, offshore and onshore structures. For more information, visit: www.nkom.com.qa
FORWARD-LOOKING STATEMENTS 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 the expected benefits and value to be realized by McDermott from the entry into the Memorandum of Understanding for an exclusive cooperation agreement with N-KOM. 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, 2015 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 Kathy Murray Vice President, Investor Relations +1 281.870.5147 kamurray@mcdermott.com Media Relations Adam Morgan Director, Global Communications +1 281.870.5932 amorgan@mcdermott.com Regional Communications Rissa Rosmawati Middle East Communications +971-4-804-3293 rrosmawati@mcdermott.com
