FEBRUARY 24, 2015 — McDermott International, Inc. (NYSE: MDR) and London based international oilfield services provider Petrofac Limited have formed a strategic marketing alliance to pursue top-tier deepwater subsea, umbilical, riser and flowline ("SURF") projects.
The five-year alliance expects to provide oil and gas companies a competitive, integrated solution across a broad range of complex engineering, procurement, construction, installation ("EPCI") subsea projects in deep and ultra-deepwater across the U.S. Gulf of Mexico, Mexico, Brazil, the North Sea, Mediterranean and West Africa.
The companies say the alliance will open up further EPCI opportunities by combining McDermott's specialty SURF fleet, its new Derrick Lay Vessel DLV 2000 and strong subsea fabrication capability with Petrofac's world class JSD 6000 installation vessel.
As we reported earlier, the JSD 6000 is a customized Ulstein SOC 5000 design vessel developed by Ulstein Sea of Solutions, the Ulstein Group's Netherlands based design unit.
Currently under construction at the ZPMC shipyard in China, the JSD 6000 complements McDermott's vessels, offering top-tier functionality for a wide range of ultra-deepwater pipelay, subsea lowering and above surface construction work, through its combined J-lay, S-lay and ultra-heavy lift capabilities.
"The strategic value of this alliance benefits our clients by combining each company's strengths to create a new competitive top-tier market participant," said Scott Cummins, Senior Vice President, Commercial for McDermott. "As a leading offshore and subsea EPCI contractor, McDermott has a demonstrated track record of delivering complex, Subsea projects such as the ongoing INPEX Ichthys Gas Condensate SURF project offshore Australia. We look forward to partnering with Petrofac on projects of this complexity and scale in the deep water environment."
Yves Inbona, Managing Director for Petrofac's Offshore Capital Projects business, said: "We are delighted to be working with McDermott who are natural partners to progress our offshore strategy in the challenging yet ultimately rewarding SURF markets."
Key terms of the alliance are:
Territory: U.S. Gulf of Mexico, Mexico, West Africa, Brazil, North Sea and Mediterranean.
Scope: SURF projects above US$200 million
Duration: Five years (plus follow-on time to deliver secured projects)
Structure and scope: project scope is anticipated to be split between partners roughly equally, but according to the specifics of a particular opportunity, and governed by separate project agreements.