HOUSTON, Oct. 16, 2018 /PRNewswire/ -- McDermott
International, Inc. (NYSE: MDR) today announced it has been awarded
a significant* contract by LUKOIL NizhegorodNefteorgSyntez, a
subsidiary of JSC LUKOIL, for the engineering, procurement and
construction (EPC) of the Delayed Coker Unit for the Deep
Conversion Complex planned to be built in Kstovo, Russia.
This award follows a 2016 award to Chevron Lummus Global (CLG),
McDermott's joint venture with Chevron, for its delayed coking
technology, and highlights the significance of pull through
opportunities that McDermott's Lummus Technology business offers
other parts of the organization. In October
2017, McDermott was awarded a detailed engineering,
procurement and long lead supply award contract for the
project.
"Our ability to provide integrated, end-to-end solutions, from
our industry-leading refining technology to a highly efficient
project delivery model, has been a deciding factor in securing this
win," said Tareq Kawash, McDermott's
Senior Vice President for Europe,
Africa, Russia and Caspian. "This is also significant for
McDermott because it is the company's first downstream EPC project
in the Russian Federation."
The contract will be reflected in McDermott's third quarter 2018
backlog.
Project Details
The delayed coking complex will be
built at the 17 million-ton/year Kstovo refinery in central
Russia's Nizhny Novgorod region. In addition to the
delayed coker, the complex will include a diesel hydrotreater, gas
fractionation unit, sulfur and hydrogen production units, and
associated systems.
Alongside other planned optimization projects, the 2.1
million-tons/year delayed coking complex will improve the
refinery's light product yield by more than 10 percent while
reducing the fuel oil production by 2.7 million tons per year. The
complex is scheduled for startup in 2021.
LUKOIL is one of the largest publicly traded, vertically
integrated oil and gas companies in the world accounting for more
than two percent of the world's oil production and around one
percent of the proven hydrocarbon reserves.
*McDermott defines a significant contract as between USD
$250 million and USD $500 million.
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 backlog, to the extent backlog may be viewed as an indicator
of future revenues or profitability, and the expected scope,
execution and timing of 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,
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.
Contacts:
Investor Relations
Scott
Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870
5269
Gentry.Brann@McDermott.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-epc-contract-for-delayed-coker-unit-for-lukoil-refinery-300731453.html
SOURCE McDermott International, Inc.