McDermott Receives Letter of Award for KG-D6 Subsea Installation Contract from Reliance Industries
November 01 2017 - 7:15AM
McDermott International, Inc. (NYSE:MDR) today announced a letter
of award for a significant* contract from Reliance Industries Ltd.
for the KG-D6 subsea field development in the Krishna Godavari
Basin, located off the east coast of India.
McDermott will provide engineering, procurement, installation
and pre-commissioning of subsea flowlines, vent lines, and a
pipeline-end manifold for connection with six subsea wells in the
R-cluster field at a water depth of up to 6,890 feet (2,100
meters), including in-field pipelines, Monoethylene Glycol (MEG)
line, pipeline-end terminals, jumpers, risers, umbilicals system
and the modification of the control riser platform to interface
with the new facilities.
“We look forward to working with Reliance on this important and
challenging project and building on our recent experience and
expertise in deepwater projects across the region,” said Hugh
Cuthbertson, McDermott’s Vice President for Asia. “McDermott’s
selection underscores the confidence and trust we’ve built with our
customers to deliver challenging projects within budget and on
schedule, like our recent success on ONGC’s Vashishta project.”
In addition to the R-Cluster of six subsea wells, the option for
five to seven more subsea wells can be exercised by the client for
an optional S-cluster package. The optional scope also consists of
two additional subsea structures and flowlines at a water depth
between 4,593 feet (1,400 meters) and 5,905 feet (1,800
meters).
McDermott plans to leverage its significant experience and
presence within India including its Engineering Center of
Excellence office in Chennai providing engineering and project
management oversight for the project. The Company also plans to use
its successful One McDermott Way approach with support from its
office in Kuala Lumpur, Malaysia and key vessels from its global
marine fleet.
The significant lump sum contract award is expected to be
reflected in McDermott’s fourth quarter 2017 backlog. The contract
is scheduled for completion by the second quarter of 2020 for the
base scope, and the first quarter of 2021 for the optional
scope.
Reliance is developing deepwater gas and oil fields in the KG-D6
block (more commonly called KG-D6) in the Krishna Godavari Basin
offshore on the east coast of India. The north-western boundary of
the block is about 24 to 37 miles (40-60 kilometers) southeast of
Kakinada in water depth of between 1,312 feet (400 meters) and
7,545 feet (2,300 meters). R-Cluster and Satellite-Cluster
discoveries are in the KG-D6 block. Reliance is planning to
develop these discoveries in phases.
* - McDermott defines a significant contract as between USD $250
million and USD $500 million.
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 customers include national and major energy
companies. Operating in approximately 20 countries across the
world, our locally focused and globally integrated resources
include approximately 12,400 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. 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, and the expected
value, scope, execution and timing associated with the project
discussed in this press release. 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, 2016 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 Ty Lawrence Vice President,
Treasurer and Investor Relations +1 281.870.5147
tplawrence@mcdermott.com
Media Relations Adam Morgan Director, Global
Communications +1 281.253.9005 amorgan@mcdermott.com
Local Asia Contact Philip NgCommunications
Manager, Asia+603 2856 5597 (Kuala Lumpur,
Malaysia)fng2@mcdermott.com
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