McDermott Awarded INPEX Ichthys Subsea Contract
January 25 2012 - 8:00AM
Business Wire
McDermott International, Inc. (NYSE:MDR) (“McDermott”) announced
today that its Australian subsidiary has received and signed a
letter of award for the Ichthys Gas-condensate Field Development
subsea umbilical, riser, flowline (“SURF”) project by INPEX. The
contract value is in the order of magnitude of US$2 billion and is
the largest subsea contract McDermott has been awarded to date.
McDermott's specialty subsea vessel North
Ocean 102 will undertake the installation of subsea hardware,
moorings, risers, umbilicals and flowlines for Ichthys SURF
project. (Photo: Business Wire)
This project includes engineering, procurement, construction,
installation (“EPCI”) and pre-commissioning of production flowline
systems, a MEG injection system, plus start-up condensate transfer
and fuel gas transfer flowline systems, control systems as well as
other associated SURF elements in water depths up to 275 meters.
McDermott will also install mooring systems for the Floating
Production, Storage and Offtake vessel and Central Processing
Facility as well as installation engineering for future flowlines,
risers and umbilicals.
McDermott has already begun engineering and procurement work and
is expected to start fabrication of more than 16,000 tonnes of
subsea equipment, including a subsea Riser Support Structure and
installation aids, at its Batam Island, Indonesia fabrication
facility beginning in 2013. The complex offshore installation
campaign will see McDermott undertake the installation of subsea
hardware, moorings, risers, umbilicals and flowlines utilizing its
specialty subsea vessels Emerald Sea and North Ocean 102. McDermott
is working with Heerema Marine Contractors (“Heerema”) for
transportation and installation of a portion of the offshore scope,
utilizing the heavy lift, J-Lay and Reel-Lay capability of
Heerema’s new-build vessel Aegir.
Stephen M. Johnson, Chairman of the Board, President and Chief
Executive Officer, McDermott said, “McDermott has a long track
record working on EPCI projects offshore Australia. This major SURF
award firmly endorses McDermott’s core EPCI competencies and our
competitive subsea construction vessels, combined with Heerema’s
installation strength and the team’s alignment with INPEX. This is
a large scale and complex development, and we are firmly behind
promoting the success of this LNG project.”
The Ichthys LNG Project is a Joint Venture between INPEX (76%,
the Operator) and Total (24%). Gas from the Ichthys Field, in the
Browse Basin approximately 200 kilometers offshore Western
Australia, will undergo preliminary processing offshore to remove
water and extract condensate. The gas will then be exported to
onshore processing facilities in Darwin via an 889-kilometer subsea
pipeline. The Ichthys LNG Project is expected to produce 8.4
million tonnes of LNG and 1.6 million tonnes of LPG per annum,
along with approximately 100,000 barrels of condensate per day at
peak.
ABOUT McDERMOTT
McDermott is a leading engineering, procurement, construction
and installation group of companies focused on executing complex
offshore oil and gas projects worldwide. Providing fully integrated
EPCI services for upstream field developments, the Company delivers
fixed and floating production facilities, pipelines and subsea
systems from concept to commissioning. McDermott’s customers
include national and major energy companies. Operating in more than
20 countries across the Atlantic, Middle East and Asia
Pacific, our integrated resources include approximately 14,000
employees and a diversified fleet of marine vessels, fabrication
facilities and engineering offices. McDermott has served the energy
industry since 1923.
To learn more, please visit McDermott’s website on the internet
at www.mcdermott.com
FORWARD LOOKING
STATEMENTS
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, 2010 and subsequent quarterly reports on Form
10-Q. This news 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.
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