McDermott Wins Pipeline Installation Project in Gulf of Mexico
May 31 2011 - 8:00AM
Business Wire
McDermott International, Inc. (NYSE:MDR) (“McDermott”),
announced today that one of its subsidiaries was awarded a contract
by PEMEX Exploración y Producción for procurement, construction and
installation of three oil and gas pipelines ranging from 8 to 20
inches in diameter, in Mexico’s Bay of Campeche. The contract is
valued at more than US$50 million and will be included in
McDermott’s second quarter backlog for 2011.
McDermott's DB16 will perform
installation work for Pemex this year in the Bay of Campeche.
(Photo: Business Wire)
“We are pleased to be working again for PEMEX in the Gulf of
Mexico. Our installation solution for this project will be
supported by our subsea engineering design group in Houston and
fabrication work from our construction yard in Altamira, Mexico,”
said Stephen M. Johnson, McDermott’s Chairman, President and Chief
Executive Officer.
Pipeline installation engineering is expected to begin in the
second quarter of 2011, with subsequent fabrication of the risers,
clamps and guards, subsea tie-in assembly and additional platform
piping and structural items from Altamira. McDermott’s DB16 will
perform the installation work, with completion expected by the end
of the year.
DB16 is outfitted with a customized Automatic Welding System
that offers high weld production rates and production flexibility.
The vessel and its crew are recognized for producing repeatable
high-quality welds with exceptional mechanical properties. Also
impressive is the vessel’s underwater block, capable of lifting
large amounts of tonnage into deepwater.
The field development in the Gulf of Mexico sits in
approximately 170 feet of water. The pipelines will run from the
Kambesah Wells Recoverer Structure to the Kutz TA platform and the
Ixtoc-A platform.
More about DB16
DB16 is a dynamically positioned, shallow and deepwater
combination barge with the flexibility of installing structures or
S-Laying pipe up to 48-inch in diameter. The vessel is equipped
with three 100 kip tension machines and five pipelay welding
stations, an abandonment and recovery hoist for laying down
pipelines in deep water. The DB16’s 200-foot long deep water truss
stinger with an A-Frame and an underwater block enables it to lower
heavy structures up to 62 tons into water 10,000 feet deep, and
lift up to 94.5 tons in water depths of 6,000 feet.
More about Altamira Fabrication
Facility
Altamira offers significant advantages for McDermott’s customers
such as cost efficiency and space, and with a new enclosed assembly
building nearing completion; this facility will offer the largest
under cover assembly bays of any of McDermott’s competitors on the
Gulf Coast.
Located in the Port of Altamira, Mexico, the McDermott
fabrication facility is one hour’s flight time from Houston, Texas
and 30 minutes flight time from Brownsville, Texas. Strategically
and competitively positioned for turnkey offshore construction of
modules, hulls and substructures, as well as rig repair and upgrade
services, this expansive yard has direct, unrestricted access to
open sea and an extensive 40-foot deep quayside (47.5-feet expected
September 2011).
Altamira’s equipment and infrastructure, material flow and
management are designed for optimum performance, delivering safe,
efficient, cost-effective offshore construction and rig repair and
upgrade solutions.
This yard caters to customers throughout the Gulf of Mexico and
Atlantic region.
ABOUT McDERMOTT
McDermott is a leading engineering, procurement, construction
and installation (“EPCI”) company 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, the
Company’s integrated resources include more than 15,000 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, and the
expected quayside depth and timing of improvements at the Altamira
fabrication facility. 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
report on Form 10-Q. . This news release reflects management’s
view 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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