HOUSTON, March 26, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today a sizeable* contract award from Unipetrol RPA for engineering, procurement and construction management (EPCM) services for its refinery in Litvinov, Czech Republic.
The contract includes the full suite of EPCM services for the upgrade of Unipetrol's hydrocracking unit. McDermott previously completed the feasibility study and basic engineering design and will now execute the procurement and installation phase.
"This award is testament to McDermott's long-standing relationship and extensive track record with Unipetrol," said Tareq Kawash, McDermott's Senior Vice President for Europe, Africa, Russia and Caspian. "We believe our ability to combine local knowledge and global expertise makes us uniquely positioned to execute this project."
During the last two decades, McDermott has successfully executed a number of feasibility studies, front end engineering and design (FEED) and EPCM projects for Unipetrol at their refineries and petrochemical facilities in the Czech Republic.
The project is scheduled to be fully executed from McDermott's Brno, Czech Republic, office with completion expected in second quarter 2020.
Work on the project will begin immediately and the contract award will be reflected in McDermott's first quarter 2019 backlog.
* - McDermott defines a sizeable 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 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.
The Unipetrol Group is the largest refinery and petrochemical company in the Czech Republic. It focuses primarily on crude oil processing, distribution and sale of fuel and petrochemical products — particularly plastics and fertilisers. In all these fields, the group is a key player on both the Czech and Central European market. The Unipetrol Group includes refineries and production plants in Litvínov and Kralupy nad Vltavou, Paramo with the Mogul brand in Pardubice and Kolín, Spolana in Neratovice, and two research centres in Litvínov and Brno. Unipetrol also owns the Benzina network of petrol stations with 409 stations, which is the largest chain in the Czech Republic. Unipetrol is one of the largest companies in the Czech Republic in terms of turnover. The group created revenue of over CZK 130 billion last year and employs more than 4,700 people. In 2005, Unipetrol became part of the PKN Orlen Group, the largest crude oil processor in Central Europe.
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, 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, 2018. 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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