| J. Ray McDermott Awarded Fabrication Work on the Gorgon Project |
HOUSTON, May 06, 2010 (BUSINESS WIRE) --McDermott International, Inc. (NYSE:MDR) ("McDermott") announced today that a subsidiary of J. Ray McDermott, S.A. ("J. Ray") has been awarded a contract by the Kellogg Joint Venture-Gorgon on behalf of Chevron Australia Pty. Ltd., operator of the Gorgon Project. Contracts of this nature are typically valued in excess of $150 million and this contract will be included in McDermott's second quarter 2010 backlog. More than 60 pre-assembled racks and units with an estimated combined weight of approximately 25,000 tonnes will be constructed at J. Ray's Batam Island fabrication facility in Indonesia. Steve Johnson, President and Chief Executive Officer of J. Ray said, "This significant project underscores J. Ray's comprehensive fabrication capabilities at Batam Island, Indonesia and further strengthens our position in the Liquefied Natural Gas module fabrication market." J. Ray will provide services for project management, fabrication engineering, procurement and material management, construction, commissioning assistance, quarantine compliance, loadout and seafastening. The pre-assembled structures, when completed, will be installed as part of the Liquefied Natural Gas plant currently under construction on Barrow Island, on Australia's North West Shelf. Work is expected to start in the fourth quarter of 2010, with project completion after two years. 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 value, 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 |