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January 17, 2020

McDermott to proceed with FEED Phase of Residue Oil Conversion Project for Beowulf Energy at Preem refinery in Sweden

01/27/2020

FEED phase builds on technology agreement between Chevron Lummus Global and Beowulf Energy and pre-FEED activities executed by McDermott

Leverages extensive experience working at the Preem refinery

Applies McDermott's unique pull-through technology

HOUSTON, Jan. 27, 2020 /PRNewswire/ -- McDermott International, Inc. today announced it has been granted approval from Beowulf Energy LLC and Preem AB to commence the front-end engineering design (FEED) phase for its Residue Oil Conversion Complex (ROCC) project. The project will be implemented at the Preem refinery in Lysekil, Sweden.

The FEED phase follows the sizeable* technology license agreement between Chevron Lummus Global (CLG), McDermott's joint venture with Chevron, and Beowulf Energy in 2017 related to CLG's LC-SLURRY Unit and the subsequent pre-FEED work executed by McDermott. The award marked the first LC-SLURRY technology license since adding the maximum residue conversion technology to the CLG portfolio.

McDermott previously worked at the Preem refinery as the FEED and Engineering, Procurement, Construction management (EPCm) contractor for the hydrocracker project, which was also based on CLG technology, between 2003 and 2006.

"Building on the CLG license for its state of the art LC-SLURRY technology, McDermott is proud to continue supporting Beowulf Energy and working at the Preem refinery with the development of the FEED phase for the ROCC project,'' said Tareq Kawash, McDermott's Senior Vice President for Europe, Africa, Russia and Caspian. ''The award of this next phase is a testament to McDermott's unique ability to leverage its pull through capabilities to deliver execution certainty to our customers."

The FEED will be executed from McDermott's downstream Centers of Excellence in The Hague, The Netherlands and Brno, Czech Republic.

Work on the project will begin immediately and is expected to be completed in the fourth quarter of 2020.

McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,400 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.

* - McDermott defines a sizeable contract as between USD $1 million and $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 more than 42,000 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 and value 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, 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

Local Area Media Relations
Zoe Keenan
Communications Manager
Europe, Africa, Russia and Caspian
+447917581727
zakeenan@mcdermott.com

SOURCE McDermott International, Inc.

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