- Companies will provide engineering,
procurement, construction, installation and commissioning (EPCIC)
for complete subsea scope including subsea production systems and
subsea umbilicals, risers and flowlines for 34 wells
- Combines industry-leading equipment and
services for end-to-end project delivery
- Project will help support India’s
energy development and Make in India goals through local
manufacturing
Baker Hughes, a GE company (NYSE: BHGE), McDermott
International, Inc. (NYSE: MDR) and L&T Hydrocarbon Engineering
(LTHE), a subsidiary of Larsen & Toubro (NSE: LT), were awarded
the subsea contract for India’s Oil & Natural Gas Corporation’s
(ONGC) largest deepwater project, the development of block DWN-98/2
in the Krishna Godavari basin. The project brings together leading
subsea equipment and services from BHGE, McDermott and LTHE to
provide ONGC with end-to-end project delivery.
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The integrated subsea package includes the supply of all subsea
production systems (SPS), including 34 deepwater trees, and the
installation of subsea umbilicals, risers and flowlines (SURF) at a
water depth of between 984 feet (300 meters) and 10,500 feet (3,200
meters).
BHGE will provide all of the subsea hardware as well as
pre-commissioning services, and McDermott will bring its
specialized fleet of pipelay and construction vessels and
engineering, procurement, construction and installation
capabilities. By reducing the number of interfaces across the
project, the group aims to reduce complexity, drive speed and
increase execution efficiency for ONGC.
“Today’s award represents an important milestone in support of
ONGC and India’s commitment to help reach its energy potential.
Built on a unique successful partnership model with McDermott and
LTHE, the project will deliver leading technologies to ONGC across
a full subsea scope,” said Neil Saunders, president & CEO,
Oilfield Equipment, BHGE. “As the industry moves toward greater
collaboration across the value chain, we believe our technology and
our unique commercial models are well-positioned to meet demand for
future subsea projects.”
“The consortium will provide an integrated solution that not
only takes full advantage of the international expertise brought by
BHGE and McDermott, but provides a key made-in-India element by
LTHE that represents local capabilities as well,” said Ian
Prescott, McDermott Senior Vice President for Asia Pacific.
“Together, we will deliver the best in class solution to ONGC with
cost-efficiency and industry leading safety.”
BHGE’s scope will include subsea hardware including trees,
manifolds, controls, connection systems, SPS installation tools and
services, as well as flexible risers and flowlines, umbilical and
topside controls. BHGE will also provide the pre-commissioning
services for additional phases of the project. The project will
leverage BHGE’s existing footprint in Kakinada for ongoing
services.
McDermott will be responsible for transportation and
installation of SURF and SPS facilities using its engineering and
other key resources in Kuala Lumpur, Malaysia and Chennai, India as
well as its installation assets Derrick Barge 30, Lay Vessel North
Ocean 105 and Lay Vessel 108.
The project is one of the first major deepwater developments in
India and a milestone for realizing India’s domestic energy
potential. The group will offer a comprehensive solution that will
also boost local manufacturing, in support of Make in India. Built
on an agreement signed in 2016, LTHE and BHGE will fabricate
manifolds for the first time in India as part of this project.
The subsea award represents the largest single subsea contract
awarded by ONGC. Delivery is scheduled for 2020 for the gas system
and 2021 for the oil system.
About BHGE
Baker Hughes, a GE company (NYSE:BHGE) is the world’s first and
only fullstream provider of integrated oilfield products, services
and digital solutions. We deploy minds and machines to enhance
customer productivity, safety and environmental stewardship, while
minimizing costs and risks at every step of the energy value chain.
With operations in over 120 countries, we infuse over a century of
experience with the spirit of a startup – inventing smarter ways to
bring energy to the world. Visit us at BHGE.com.
About McDermott
McDermott is a premier, fully integrated provider of technology,
engineering and construction solutions to the energy industry. For
more than a century, customers have trusted McDermott to design and
build end-to-end infrastructure and technology solutions—from the
wellhead to the storage tank—to transport and transform oil and gas
into the products the world needs today. Our proprietary
technologies, integrated expertise and comprehensive solutions
deliver certainty, innovation and added value to energy projects
around the world. Customers rely on McDermott to deliver certainty
to the most complex projects, from concept to commissioning. It is
called the "One McDermott Way." Operating in over 54 countries,
McDermott's locally focused and globally-integrated resources
include approximately 40,000 employees and engineers, a diversified
fleet of specialty marine construction vessels and fabrication
facilities around the world. As used in this press release,
McDermott includes McDermott International, Inc. and its
subsidiaries and affiliates. To learn more, visit
www.mcdermott.com.
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 scope, execution
and timing of the project discussed in this press release. Although
McDermott believes 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, 2017 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.
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