McDermott Completes Final Offshore Campaign for Ichthys LNG Project

HOUSTON, April 29, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE:MDR) announced today it has recently successfully completed the final offshore campaign for the INPEX-operated Ichthys LNG Project, located offshore Western Australia.

This was the second of two remaining work packages left under McDermott's contract, which was the largest subsea contract ever awarded at the time. Most of the EPCI for the SURF contract awarded in January 2012 was completed by the end of 2017.

The final offshore campaign involved subsea tiebacks to new drill centers and was executed by McDermott's Lay Vessel 108 (LV 108). The vessel has recorded 813,694 hours without any lost time incidents (LTI) since its first campaign in 2015.

"The final campaign was executed in a live producing field, and as such, we put in place additional risk and controls management that ensured our success and met all of the customer expectations. This has demonstrated McDermott's execution capability on a large-scale, complex SURF EPCI scope," said Ian Prescott, McDermott's Senior Vice President for Asia Pacific. "Our outstanding record of accomplishment confirms our expertise and ability to execute one of the world's largest subsea contracts to date."

McDermott recorded more than 500,000 engineering workhours from offices across the world, including a Perth led Project Management team that was in place from 2012 and consisted of 160 personnel at its peak in 2017; procured over USD $600 million in-field equipment; built 48 subsea structures weighing a total of approximately 28,660 tons (26,000 metric tons) that included one of the largest riser support structures in the world at the time and used three of the company's deepwater installation vessels (DLV 2000, LV 108 and Intermac 650) and other contracted vessels to execute the project.

McDermott has a small fabrication scope remaining to be completed at its fabrication yard in Batam, Indonesia, which will conclude its work packages for the Ichthys LNG Project in its entirety in 2019.

About the Ichthys LNG Project
The Ichthys LNG Project is one of the largest and most complex resource developments in the world. Located about 136 miles (220 kilometers) offshore Western Australia, it lies in an average water depth of 820 feet (250 meters). The Ichthys LNG Project is effectively three mega-projects rolled into one, involving some of the largest offshore facilities in the industry, a state-of-the-art onshore processing facility and a 553 mile (890 kilometer) pipeline uniting them for an expected operational life of 40 years.

The project involves liquefying natural gas lifted from the Ichthys gas-condensate field offshore Western Australia at an onshore gas liquefaction plant constructed in Darwin, Northern Territory, and producing and shipping approximately 8.9 million tons of liquefied natural gas (LNG) and approximately 1.65 million tons of liquefied petroleum gas (LPG) per year, along with approximately 100,000 barrels of condensate per day at peak.  Approximately 70 percent of the LNG produced by Ichthys LNG is scheduled to be supplied to Japanese customers. Ichthys LNG will help to meet growing energy demand in the region, while contributing to the Australian way of life.

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 32,000 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.

Contacts:

Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
[email protected]

Global Media Relations
Gentry Brann
Global Vice President, Communications and Marketing
+1 281 870 5269                                                
[email protected]

Asia Pacific Media Contact
Miki O'Farrell
Manager, Marketing APAC
+60 12 305 3609
[email protected]

SOURCE McDermott International, Inc.

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