HOUSTON, Dec. 6, 2018 /PRNewswire/ -- McDermott
International, Inc. (NYSE: MDR) announced today a sizeable*
contract award for front-end engineering design (FEED) services of
the Davis Refinery Project in Billings
County, North Dakota, a grassroots refinery that is being
developed by Meridian Energy Group Inc.
The new Davis Refinery will leverage the prolific crude oil
feedstocks generated from the recent Bakken shale revolution –
specifically from the Williston
Basin in North Dakota. Touted as
one of the most environmentally-friendly refineries in the U.S.,
the new refinery will utilize modern technology and improve
operational efficiency while maintaining strict environmental
stewardship.
"This partnership with Meridian is a key and strategic
opportunity to design one of the most advanced and
environmentally-compliant refineries in the world," said
Richard Heo, Senior Vice President
for North, Central and South
America. "Early engagement during the FEED phase is a
strategy that is proving beneficial to McDermott customers.
McDermott intends to develop the FEED within the context of an
expected modular execution and construction approach for this
project. We are excited to be part of this ground-floor opportunity
on the Davis Refinery Project and look forward to the opportunity
to partner with Meridian from FEED to EPC."
Capacity of the new refinery is expected to be 49,500 barrels
per day and will include the production of ultra-low sulfur diesel
and premium gasoline. After conclusion of the FEED study, both
parties will endeavor to enter into an EPC agreement to build the
refinery.
The contract award will be reflected in McDermott's fourth
quarter 2018 backlog.
*McDermott defines a sizeable contract between USD
$1 million and $50 million.
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. As used in
this press release, McDermott includes McDermott International,
Inc. and its subsidiaries and affiliates. To learn more,
visit www.mcdermott.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 backlog
may be viewed as an indicator of future revenues or profitability,
and statements about the expected value and scope of the FEED
contract and expectations for the follow-on EPC contract 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-feed-contract-by-meridian-energy-group-for-north-dakota-grassroots-refinery-300761427.html
SOURCE McDermott International, Inc.