HOUSTON, Nov. 15, 2018 /PRNewswire/ -- McDermott
International, Inc. (NYSE: MDR) announced today a contract award
for concept and engineering services for Talos Energy Inc. for the
Zama field development project – the first offshore Mexico block awarded to a private operator.
The contract award is for engineering services, including concept
selection and follow-on pre-FEED.
McDermott will execute this contract award with io oil & gas
consulting, a joint venture between McDermott and Baker Hughes, a
GE company (BHGE). McDermott will manage all phases of the
engineering services process and will workshare engineers and
designers in Mexico City and will
receive continuous support from io and input from the customer.
Based on the final concept solution identified by io, McDermott
will provide the follow-on pre-FEED services for the Zama
development. Work on the concept selection has begun with expected
completion in the third quarter 2019.
"The Zama discovery is a significant and historic project for
Mexico, and our customer, Talos
Energy," said Richard Heo, Senior
Vice President for North, Central and South America. "Early engagement during the
conceptual and pre-FEED phases is a strategy that is proving
beneficial to our customers. With high estimated oil production,
designing an efficient concept solution, in combination with the
integrated pre-FEED studies, allows us to help Talos maximize the
value of this important greenfield project."
The Zama field is located in Block 7 of the Sureste Basin
offshore Mexico in the
Gulf of Mexico and has a water
depth of approximately 540 feet (165 meters). The field was
discovered in July 2017, and Zama-1
was the first exploration well drilled offshore Mexico by a private sector operator. Talos
estimates the field has 400-800 million recoverable barrels of oil
equivalent (MBOE), with an estimated peak production of
approximately 150 MBOE/day. Appraisal activities are planned for
late 2018 with two additional wells and first oil is expected by
2022.
The Zama field development project has shared participating
interest among Talos Energy (35%), Sierra Oil and Gas (40%) and
Premier Oil (25%).
The contract award will be reflected in McDermott's fourth
quarter 2018 backlog.
About McDermott
McDermott is a premier, fully integrated provider of technology,
engineering and construction solutions to the energy industry. For
more than a century, customers have trusted McDermott to design and
build end-to-end infrastructure and technology solutions to
transport and transform oil and gas into the products the world
needs today. Our proprietary technologies, integrated expertise and
comprehensive solutions deliver certainty, innovation and added
value to energy projects around the world. Customers rely on
McDermott to deliver certainty to the most complex projects, from
concept to commissioning. It is called the "One McDermott Way."
Operating in over 54 countries, McDermott's locally focused and
globally-integrated resources include approximately 40,000
employees, a diversified fleet of specialty marine construction
vessels and fabrication facilities around the world. To learn more,
visit www.mcdermott.com.
About io oil & gas consulting
io oil & gas consulting is a strategic consultancy created
to provide greater certainty and higher decision quality to
operators and help bring more projects to sanction by disrupting
traditional approaches. io is unique with its integrated
strategic-techno-commercial capabilities ensuring a balanced
approach between commercial, technical and strategic priorities
capitalizing on multi-discipline capabilities in subsurface,
drilling, subsea, marine, facilities, decommissioning/life
extension and environmental alongside economic modelling. We are a
joint venture between Baker Hughes, a GE company, and McDermott and
are unique in having their know-how, expertise and data 'hard
coded' into our DNA. For powerful thinking, visit
www.iooilandgas.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995, McDermott cautions that
statements in this press release which are forward-looking, and
provide other than historical information, involve risks,
contingencies and uncertainties that may impact McDermott's actual
results of operations. These forward-looking statements include,
among other things, statements about backlog, to the extent this
may be viewed as an indicator of future revenues or profitability,
and the expected scope, execution, value and timing of the project
discussed in this press release. Although we believe that the
expectations reflected in those forward-looking statements are
reasonable, we can give no assurance that those expectations will
prove to have been correct. Those statements are made by using
various underlying assumptions and are subject to numerous risks,
contingencies and uncertainties, including, among others: adverse
changes in the markets in which we operate or credit markets, our
inability to successfully execute on contracts in backlog, changes
in project design or schedules, the availability of qualified
personnel, changes in the terms, scope or timing of contracts,
contract cancellations, change orders and other modifications and
actions by our customers and other business counterparties, changes
in industry norms and adverse outcomes in legal or other dispute
resolution proceedings. 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 and
quarterly filings with the Securities and Exchange Commission,
including its annual report on Form 10-K for the year ended
December 31, 2017 and subsequent
quarterly reports on Form 10-Q. This press 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.
Contacts:
Investor Relations
Scott
Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870
5269
Gentry.Brann@McDermott.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-conceptual-and-engineering-services-contract-by-talos-energy-for-zama-field-development-project-in-mexico-300750765.html
SOURCE McDermott International, Inc.