McDermott books Arabian Gulf EPCI contract

McDermott Jebel Ali facility McDermott Jebel Ali facility

MARCH 6, 2014 — McDermott International, Inc. (NYSE: MDR) reports that a subsidiary has been awarded a large engineering, procurement, construction and installation ("EPCI") project by an operator in the Arabian Gulf. The award is included in McDermott's fourth quarter 2013 backlog.

The contract includes the engineering, fabrication, transportation and installation of four new offshore topsides facilities, plus modification of two existing production facilities to extend the current deck space and maximize the size of modules. The combined total weight of the structures will exceed 3,500 metric tonnes. The awarded scope also includes the installation of a 12-inch subsea pipeline of approximately 15 kilometers. Water depths range between 10 to 14 meters.

Commenting on the award, David Dickson, President and Chief Executive Officer said, "The project is part of a plan to boost oil production from existing fields, by the implementation of gas injection technology, and the installation of new production wells. Our ability to provide sound technical solutions in both brownfield and greenfield scopes supported by our regional capabilities in providing fabrication, marine and manpower resources has helped us secure this award."

Engineering and fabrication for the project will be undertaken by McDermott at its Jebel Ali facility in Dubai, with transportation and installation carried out by vessels from the McDermott global marine fleet. Offshore operations are expected to commence in the fourth quarter of 2014, with project completion, including hookup and commissioning, planned for the first quarter of 2015.