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Mcdermott Wins Significant Subsea Fabrication Work

Source: 10/11/2010, Location: Not categorized

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McDermott International, Inc. announced that one of its subsidiaries has been awarded a contract from Vetco Gray Australia Pty Limited for the fabrication of subsea structures and spools for Chevron's Gorgon Upstream Project. The value is expected to be in excess of US$50 million and will be included in McDermott's fourth-quarter 2010 bookings.

The project involves the construction of 12,000 tonnes of subsea structures and spools, which will be carried out at McDermott's fabrication facility in Batam Island, Indonesia.

"This project is a significant win for our company and further strengthens McDermott's strategic positioning as a service provider in the fast developing subsea, umbilicals, risers and flowlines ("SURF") market in Asia Pacific," said Stephen M. Johnson, McDermott's President and Chief Executive Officer.

The scope of work encompasses the fabrication of various eight-slot, six-slot and four-slot manifolds, including pipeline termination structures, pipeline end terminations, spools, well jumpers, and subsea pig launchers/receivers.Work is scheduled to commence later this year, with completion expected in the last quarter of 2012.

This is the second contract McDermott has won for the Gorgon project. Earlier this year, the company was contracted to supply more than 60 pre-assembled racks and units with an estimated combined weight of approximately 25,000 tonnes.

The Gorgon Upstream Project supports Chevron's development of the Gorgon and Janz fields located offshore Northwest Australia. Gorgon is the world's largest subsea to beach Liquefied Natural Gasdevelopment, and is Australia's largest known gas resource.

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