HOUSTON, Oct. 30, 2019 /PRNewswire/ -- McDermott
International, Inc. (NYSE: MDR) today announced the signing of a
Memorandum of Understanding (MOU) with Darwin Clean Fuels Pty Ltd.
The MOU is for the feasibility study, technology, front-end
engineering design (FEED) and engineering procurement and
construction (EPC) for a Clean Fuels Condensate Processing Plant in
Darwin, in the Northern Territory, Australia.
"The refinery would leverage our proprietary technologies,
including alkylation and sulfur recovery, and is evidence of
McDermott's technology-led EPC capabilities," said Ian Prescott, Senior Vice President of
Asia Pacific. "Our engineering
feasibility studies often serve as the essential underpinning of
client decisions about moving forward with major investments."
Condensate is a cleaner fuel; it is a light petroleum liquid
that condenses from natural gas, requiring less processing to
create quality transport fuels. Australia is a major producer of condensate
which is forecast to export 260,000 barrels per1 day by
2020 growing to 305,000 bpd by 2030. Darwin Clean Fuels plans to
design, build and operate the condensate plant which has 75 percent
lower CO² emissions than crude oil refineries. Australia consumes some 1,000,000 barrels a
day of transport fuels and currently imports 600,000 barrels per
day to meet its transport fuel needs.
"Darwin Clean Fuels looks forward to the next phase of the
project with McDermott to move it toward a final investment
decision," said Tony Debenham,
Darwin Clean Fuels, Managing Director. "The Clean Fuels Condensate
Refinery is a great, long-term investment in Australia, creating jobs and contributing to
the economy by reducing the reliance on fuel imports. It also
creates an opportunity to maximize both the output and use of this
great resource by refining condensate onshore in Australia rather than exporting it overseas
for processing it into petrochemicals or refinery blendstock,
helping to address the long-term fuel security issues that
Australia faces."
As part of the initial contract, McDermott will undertake the
feasibility study and FEED through to final investment decision.
Upon final investment decision, McDermott will be the lead EPC
contractor for the refinery. Early phase engineering work will
commence immediately and be completed by quarter one in 2020.
About Darwin Clean Fuels
Darwin Clean Fuels Pty Ltd
(DCF) is seeking to develop, construct and operate a 60,000 /
100,000 barrels per day (bpd) condensate processing facility to be
located in Darwin, Northern Territory, Australia. This will be the first petroleum
refinery of significant size to be built in Australia for over 45 years and the first in
Australasia to be utilizing entirely condensate as its feedstock.
DCF aims to take advantage of the, low sulphur, and high-quality
condensate feedstock for processing into transport fuels that meet
the stringent Australian clean fuel standards introduced in 2008/09
but will also meet Euro 6 standards
which are mandated for 2027. In strategic alliance with BP, DCF
will replace imports of fuel to the Northern Territory and imports
of petrol to the Australian east coast markets. Australia has become a net importer of refined
fuels, shifting from being a net exporter, through a combination of
demand growth and shrinking refining capacity with further refinery
plant closures forecast. Refining industry capital expenditure in
Australia in recent years has been
applied to meet the new clean fuel standards rather than increase
refining capacity.
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 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 32,000
employees, a diversified fleet of specialty marine construction
vessels and fabrication facilities around the world. 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, timing and benefits of the Memorandum of
Understanding 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, 2018 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
Senior Vice President, Communications, Marketing and
Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Asia Pacific Media Relations
Miki O'Farrell
Manager, Marketing APAC
+6012 305 3609
mofarrell@McDermott.com
1 FGE Condensate Annual 2019
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SOURCE McDermott International, Inc.