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December 14, 2018

McDermott Awarded EPCI Subsea Tieback Contract from PEMEX for Ayatsil Pipelines

07/31/2018
- McDermott to install two rigid flowlines for PEMEX's Ayatsil field in offshore Mexico
- Award builds on McDermott's successful reputation in Mexico with PEMEX
- Solution supports client's goal of increased production, particularly heavy crude oil

HOUSTON, July 31, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today a sizeable* contract award by PEMEX Exploración y Producción for subsea pipeline flowline installation in support of its Ayatsil field, located 50 miles northwest of Ciudad del Carmen in the Bay of Campeche offshore Mexico.

The scope of work includes design and detailed engineering, procurement, construction and installation of two subsea pipelines. The first line (L1) is a 24 inch diameter, approximately 1.9 miles (3.2 kilometers) length natural gas pipeline that will connect the PP-Ayatsil-C and PP-Ayatsil-A platforms. The second line (L10) is an 8 inch, approximately .9 of a mile (1.5 kilometers) in length oil pipeline that connects to the PP-Ayatsil-C platform.

"This award follows on the proven track record we have had in Mexico with PEMEX – including the fabrication and installation of the Ayatsil-C platform and the fabrication and future installation of Abkatun," said Richard Heo, McDermott's Senior Vice President for North, Central and South America. "This opportunity enables us to demonstrate our subsea capabilities in offshore Mexico. We look forward to working closely with PEMEX to successfully delivering this project with safety and quality at the forefront throughout the execution."

McDermott's operating center in Mexico City will perform project management and engineering. Offshore installation is scheduled to be completed in early 2019.

The lump sum contract award is reflected in McDermott's second quarter 2018 backlog.

Located in the Bay of Campeche, the Ayatsil field is a heavy crude oil field and is PEMEX's largest discovery to date. Water depths in the area are approximately 375-400 feet (114-121 meters).

*McDermott defines a sizeable contract as between USD $1 million and USD $50 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. 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 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

new McDermott logo (PRNewsfoto/McDermott International, Inc.)

 

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SOURCE McDermott International, Inc.

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