| J. Ray McDermott Awarded EPCI Project by Saudi Aramco |
| HOUSTON, Mar 24, 2010 (BUSINESS WIRE) -- J. Ray McDermott, S.A. ("J. Ray"), a subsidiary of McDermott
International, Inc. (NYSE:MDR) ("McDermott"), has been awarded a project
to upgrade crude gathering and power supply facilities in Saudi Aramco's
Safaniya field. The infrastructure upgrade and electrification project
will help sustain crude oil production to meet Saudi Aramco's Maximum
Sustainable Capacity targets for the field by 2013.
Steve Johnson, President and Chief Executive Officer of J. Ray said, "Innovative engineering, global procurement strength, installation by our new pipelay barge LB32 in tandem with other vessels from our fleet, and our firm understanding of Aramco's requirements enabled us to develop an execution strategy to deliver this significant project to meet the customer's demands." The work includes engineering, procurement, construction, and installation ("EPCI") of a new tie-in platform (STP-20) with a 6,000-ton topside, a new electrical deck module for an existing platform (STP-18), a 53-kilometer, 42-inch trunk line, four new in-field lateral flowlines and valve skids, 156 kilometers of subsea electrical cable, and the modification and electrification of nine existing wellhead platforms. Saudi Aramco has continuously employed ground breaking methods and technology for the electrification of the Safaniya field, incorporating the largest power cables in the region. Engineering design work will begin in the second quarter of 2010 with contract completion expected during 2013. The multi-faceted nature of this project will allow J. Ray to demonstrate its full range of services, from design development, detailed engineering, procurement, construction of new facilities, and installation of platforms, pipelines and cables, as well as brownfield modifications to existing facilities from its regional headquarters in Jebel Ali. J. Ray has successfully executed Maintain Potential Projects for Saudi Aramco in the Berri, Marjan, Zuluf, Abu-Safah and Safaniya fields since the early 1980's. McDermott is an engineering and construction company, with specialty manufacturing and service capabilities, focused on energy infrastructure. McDermott's customers are predominantly utilities and other power generators, major and national oil companies, and the United States Government. With its global operations, McDermott operates in over 20 countries with more than 25,000 employees. In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott International, Inc. cautions that statements in this press release which are forward-looking and provide other than historical information involve risks and uncertainties that may impact McDermott's actual results of operations. The forward-looking statements in this press release include, among other things, the expected scope, execution, and timing associated with this project. Although McDermott's management believes that the expectations reflected in those forward-looking statements are reasonable, McDermott can give no assurance that those expectations will prove to have been correct. Those statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including without limitation, changes in project design or schedules, contract cancellations, change orders and other modifications, and difficulties executing on the project. 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 report on Form 10-K for the year ended December 31, 2009. SOURCE: McDermott International, Inc. McDermott Investor Relations & Corporate Communications |