McDermott International, Inc. (NYSE:MDR) announced today it has
successfully concluded the installation and startup on the
Vashishta and S1 field, an engineering, procurement, construction
and installation (EPCI) contract that it received from ONGC in
December 2015.
McDermott together with consortium partner LTHE, a wholly owned
subsidiary of Larsen & Toubro Limited (L&T), was
responsible for the engineering, supply and installation of a
series of pipeline end terminations (PLETs) and in-line tee
structures (ILTs), a pipeline end manifold structure (PLEM), rigid
jumpers and approximately 50 kilometers (30 miles) of umbilicals.
The pipeline scope includes 93 kilometers (58 miles) of 14-inch
dual rigid pipelines extending from the shallow water shore line to
a maximum water depth of 700 meters (2,300 feet).
“I’d like to take this opportunity to congratulate ONGC in
achieving this important first gas milestone! The success of this
project confirmed that our consortium with LTHE has performed well
in delivering the best in-market solution for our client," said Ian
Prescott, McDermott’s Vice President for Asia. "We look forward to
building on this strategic collaboration for future projects in
India.”
“Engineering design for the Vashishta project was no easy feat
due to the iterative nature of the design process which had to
reconcile many factors such as soil conditions, jumper/spool loads,
connector capacities, in-place environmental loads, pipeline
expansion loads, installation weather limitations, vessel envelope
constraints and mission equipment constraints,” said Ben Delves,
McDermott’s Vashishta Project Director.
Typical weights for Vashishta PLETs and ILTs ranged from 35 to
85 metric tons (27 to 93 tons) and the PLEM weight was 200 metric
tons (220 tons). "A combination of soft soils and the
significant weight of permanent equipment has contributed to some
large structures which made the interfaces with the installation
vessel challenging," said Delves.
The installation of the subsea infrastructure was particularly
challenging as McDermott only had four months out of the year to
work at the Krishna-Godavari basin before the monsoon season hit
the field with bad weather and strong sea undercurrents.
McDermott deployed three of its specialty vessels to complete
the installation phase, namely Derrick Barge 30, Lay Vessel North
Ocean 105 and North Ocean 102. McDermott also deployed its
trademarked portable spoolbase at the LTHE base in Kattupalli,
India, to fast-track the production of pipeline stalk for loading
onto the installation vessels.
Project DetailsThe Vashishta field lies in
water depths varying between 500 and 700 meters (1,600 and 2,300
feet) and approximately between 31 to 35 kilometers (19 to 22
miles) from the Amalapuram coast. The S1 field is located in water
depths of between 250 to 600 meters (800 to 2000 feet), and
approximately between 26 to 29 kilometers (16 to 18 miles) from the
Amalapuram coast. The ONGC development encompasses drilling,
re-entry and completion of three wells, subsea tie-back of the
wells to an onshore terminal at Odalarevu and expansion of the
existing onshore terminal.
The Vashishta field is estimated to produce 9.56 billion cubic
metres (bcm) over a period of nine years with peak production
reaching 3.55 million metric standard cubic metres a day (mmscmd)
during the first five years. The S1 field is expected to deliver
6.22bcm over a period of eight years with a peak production of
2.2mmscmd for the first five years.
About McDermott
McDermott is a leading provider of integrated engineering,
procurement, construction and installation (“EPCI”), front-end
engineering and design (“FEED”) and module fabrication services for
upstream field developments worldwide. McDermott delivers fixed and
floating production facilities, pipelines, installations 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 11,600 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 shares of its common stock are 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 our website at www.mcdermott.com.
Forward-Looking StatementsIn 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: adverse changes in the
markets in which we operate or credit markets, 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 other business counterparties, changes in
industry norms and adverse outcomes in legal or other dispute
resolution proceedings. 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
RelationsTy Lawrence Vice President, Investor Relations +1
281.870.5147 tplawrence@mcdermott.com Global Media
RelationsEd MemiManager, Communications+1
281.870.5943ememi@mcdermott.com
Local Asia Contact Philip NgCommunications
Manager, Asia+603 2856 5597 (Kuala Lumpur,
Malaysia)fng2@mcdermott.com
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