HOUSTON, Feb. 18, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced two sizeable* contracts, one from Sarawak Shell Berhad (SSB) and one from Sapura Exploration and Production (SEP), to provide transportation and installation of offshore structures, pipelines and pre-commissioning work for the Pan Malaysia field development located off the shore of Sarawak, Malaysia.
McDermott's scope of work for SSB includes the transportation and installation of jackets, topsides and pipelines for the Gorek gas field. The company's scope of work for SEP includes the transportation and installation of jackets, topsides and pipelines for the Larak and Bakong gas fields. McDermott will also fabricate risers and spools for SSB and SEP.
"These two contracts give McDermott the opportunity to strengthen our long-standing relationship with Sarawak Shell Berhad and develop a new relationship with Sapura Exploration and Production," said Ian Prescott, McDermott's Senior Vice President for Asia Pacific. "They also provide an excellent opportunity for McDermott to execute offshore projects in Malaysia using many of the company's assets, from our highly-skilled and talented workforce to our marine assets and our global fabrication expertise."
McDermott is scheduled to use its installation vessel, the Malaysian-registered Derrick Barge 30, for these jobs. The project management team will be based in Kuala Lumpur using the maximum Malaysian workforce to meet the local content requirement. Fabrication of the risers and spools is scheduled to be performed at McDermott's global execution center in Batam, Indonesia. The offshore campaign is expected to begin in Q2 2019.
The awards mark McDermott's first contracts in Malaysia since relocating the regional headquarters to Kuala Lumpur. McDermott has since increased its local workforce from 90 to nearly 700 employees. "We have grown significantly in a relatively short space of time. Our Kuala Lumpur office is one of the company's centers of excellence supporting our global projects. This gives our local employees excellent development and growth opportunities. We are extremely pleased to secure the Pan Malaysia field development work which enables us to support the growth of the Malaysian oil and gas sector and the country," said Prescott.
McDermott is continuing its hiring process in Malaysia to meet the growing business prospects in the region and its recent combination with CB&I that opens up onshore petrochemical business opportunities in addition to its offshore business portfolio.
The Pan Malaysia contracts will be reflected in McDermott's first quarter 2019 backlog.
* McDermott defines a sizable contract as between USD $1 million and USD $50 million.
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.
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 scope, execution, value and timing of the projects 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.
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SOURCE McDermott International, Inc.