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August 23, 2019

McDermott Awarded EPCI Subsea Tieback Contract from LLOG for the Stonefly Development

01/28/2019
- McDermott will install the subsea infrastructure to support a two well subsea tieback from the Stonefly development site to the Ram Powell platform in the Gulf of Mexico
- McDermott's advanced spoolbase in Gulfport, Mississippi, and North Ocean 105 will be used for the installation work
- Award builds on McDermott's proven experience on subsea projects with LLOG such as Otis and Buckskin

HOUSTON, Jan. 28, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today a sizeable* contract award by LLOG Exploration Company, L.L.C.  for deepwater subsea pipeline tiebacks and structures from the Stonefly development to the Ram Powell platform, located approximately 140 miles southeast of New Orleans, Louisiana.

The scope of work includes project management, installation engineering, subsea structure and spoolbase stalk fabrication, and subsea installation of the subsea infrastructure to support a two well subsea tieback from the Stonefly development site to the Ram Powell platform via a 60,000 foot 6-inch pipeline at water depths ranging from 3,300 to 4,100 feet. McDermott will also design, fabricate and install a steel catenary riser, a pipeline end manifold and two in-line sleds.

"This award demonstrates McDermott's commitment to helping LLOG safely and competitively deliver the Stonefly development," said Richard Heo, McDermott's Senior Vice President for North, Central and South America. "McDermott's proven track record of project execution in the Gulf of Mexico, combined with our industry-leading subsea capabilities and integrated business model, will help drive efficiency while maintaining our uncompromising commitment to safety and quality."

The Stonefly development includes the Viosca Knoll 999 area where McDermott is scheduled to use its 50-acre spoolbase in Gulfport, Mississippi, for fabrication and reeled solutions. McDermott is scheduled to install the subsea tiebacks and structures using its North Ocean 105 vessel in the third quarter of 2019. Structure design and installation engineering began in January 2019 in McDermott's Houston office.   

The lump sum contract award will be reflected in McDermott's first quarter 2019 backlog.

The Ram Powell tension leg platform is located in 3,200 feet of water in Viosca Knoll Area, Block 956, and is capable of processing 60,000 barrels of oil per day and 200 million cubic feet of gas per day.

LLOG is one of the largest privately-owned exploration and production companies in the United States.

*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 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, 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 statements about the expected scope, execution, value 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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