McDermott Signs Strategic Memorandum of Understanding to Construct Offshore Production Solutions in Saudi Arabia
March 08 2017 - 4:00AM
McDermott International, Inc. (NYSE:MDR) announced today it plans
to construct offshore production solutions in Saudi Arabia.
McDermott signed a memorandum of understanding with Saudi Aramco
for a long-term land lease at the new maritime facility at Ras Al
Khair in Saudi Arabia, currently being developed by Saudi Aramco.
With a long-term phased approach, McDermott plans to build a new
fabrication and marine complex expected to use state-of-the-art
facilities, increased automation and an optimized layout to
increase McDermott’s abilities to service its growing Middle East
and Caspian markets.
“We are excited about this strategic move and believe it expands
and strengthens our ability to service all our growing Middle East
markets and our decades-long leadership position with Saudi Aramco
and in the Middle East,” said David Dickson, McDermott’s President
and Chief Executive Officer. “When we look at our next 50 years of
business in the Middle East, we see strong benefits to moving our
business operations to Saudi Arabia, including the opportunity to
modernize our facilities, move closer to Saudi Aramco and other key
customers in the region as well as provide McDermott’s world-class
training programs to Saudi Arabia’s talented workforce to further
enhance McDermott’s Middle East operations.”
McDermott expects to expand its capabilities and capacity in the
region to serve its customers in offshore and subsea markets
throughout the Middle East, Caspian and other markets in the
Eastern Mediterranean Sea and offshore India and East Africa. The
future fabrication facility at Ras Al Khair is expected to provide
up to 16-million manhours of capacity, up from 8-million manhours
at McDermott’s current Jebel Ali facilities, with a gradual
transition from McDermott’s operations in Jebel Ali expected by the
mid-2020s.
The move also demonstrates McDermott’s support of Saudi Arabia’s
Vision 2030 and Saudi Aramco’s In-Kingdom Total Value Add (IKTVA)
program. The IKTVA program intends to expand KSA-based business
operations to help drive domestic value creation and maximize
long-term economic growth, diversification, job creation and
workforce development, to support a rapidly changing Saudi
economy.
For more information about the MOU, visit the Investors page of
McDermott’s website at www.mcdermott.com.
About McDermottMcDermott is a leading provider
of integrated engineering, procurement, construction and
installation (EPCI) services for upstream field developments
worldwide. The Company delivers fixed and floating production
facilities, pipelines and subsea systems from concept to
commissioning for complex offshore and subsea oil and gas projects
to help oil companies safely produce and transport hydrocarbons.
Our customers include national and major energy companies.
Operating in approximately 20 countries across the world, our
locally focused and globally integrated resources include
approximately 12,400 employees, a diversified fleet of specialty
marine construction vessels, fabrication facilities and engineering
offices. We are renowned for our extensive knowledge and
experience, technological advancements, performance records,
superior safety and commitment to deliver. McDermott has served the
energy industry since 1923. As used in this press release,
McDermott includes McDermott International, Inc. and its
subsidiaries and affiliates. To learn more, visit our website at
www.mcdermott.com.
Forward-Looking StatementIn 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: the details regarding the
transactions contemplated by the MOU; the three bullet point
statements at the beginning of this press release and the expected
benefits to be derived from those transactions (including the
expansion and strengthening of its ability to service its growing
Middle East and Caspian markets, the modernization of its Middle
East facilities and ability to recruit from Saudi Arabia’s talented
workforce); and the timing and results of the development of the
new fabrication yard and marine base at Ras Al Khair and the
transition of McDermott’s Middle East operations from Jebel Ali.
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: our inability to agree with Aramco and
other third parties on the contractual arrangements referred to in
this press release, the effects of competition, actions of third
parties and changes in conditions and other factors affecting our
industry. 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, 2016. 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.
McDermott International, Inc.
Investor Relations
Kathy Murray
Vice President, Treasurer and Investor Relations
+1 281.870.5147
kamurray@mcdermott.com
Media Relations
Adam Morgan
Director, Global Communications
+1 281.253.9005
amorgan@mcdermott.com
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