HOUSTON, Jan. 24, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today a significant* contract award by BP Trinidad & Tobago, LLC (bpTT) for the engineering, procurement and construction (EPC) of the Cassia Compression Platform, located 35 miles (57 kilometers) southeast off the coast of Trinidad.
"This award demonstrates how, through strong collaboration and consistent project execution, we continue to build our relationship with bpTT," said Richard Heo, McDermott's Senior Vice President for North, Central and South America. "To ensure project execution excellence, we will leverage our One McDermott Way operating model to safely and efficiently deliver the Cassia Compression Platform with the highest quality."
McDermott will provide engineering, procurement, construction, hook-up and commissioning of the 8,928 ton (8,100-metric ton) Cassia C topsides, a 3,747 ton (3,400-metric ton) jacket and a 793 ton (720-metric ton) bridge to link Cassia C with the existing Cassia B platform that currently sits in 223 feet (68 meters) of water. The scope also includes Brownfield modifications at Cassia B. The compression platform will be fabricated and constructed at McDermott's world-class fabrication facility in Altamira, Mexico – where another recently delivered project for bpTT, Angelin, was fabricated. Trinidad Offshore Fabrication Company (TOFCO), a fabricator in Trinidad, will fabricate the jacket and the bridge landing frame.
Engineering services will be provided by McDermott's offices in Houston, Chennai and Dubai, with the project management team and procurement being performed from their office in Houston.
This EPC contract follows the completion of a detailed engineering and long lead procurement services contract McDermott completed for Cassia C earlier this year, as well as the completion of the engineering, procurement, construction, installation and commissioning (EPCIC) contract of the Angelin project for bpTT.
Cassia C is bpTT's third Cassia platform, handling gas coming from its operations in the prolific Columbus basin. Cassia C will receive 1.2 billion standard cubic feet per day (BSCFD) of hydrocarbon gas through new piping from Cassia B across the bridge. The gas will be compressed in three gas turbine driven compressors and returned to Cassia B for export. Liquids from Cassia C and Cassia B will be combined and boosted for export.
* McDermott defines a significant contract as $250 million to $500 million. The contract was awarded in two phases, with an initial booking in the fourth quarter of 2018 for early engineering and procurement work. The remainder of the award will be reflected in McDermott's first quarter 2019 backlog.
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 value, scope, and execution and timing of the project 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.
Vice President, Investor Relations
+1 832 513 1068
Global Media Relations
Global Vice President, Communications
+1 281 870 5269
SOURCE McDermott International, Inc.