- Combined capability offering of both companies creates a unique and compelling value proposition for east coast India deepwater developments
- Agreement builds on successful collaboration that resulted in the recent award of Vashishta Deepwater Greenfield development
- Long-term, mutually exclusive agreement provides strategic relationship to address significant deepwater opportunities offshore India
HOUSTON and CHENNAI, India, Feb. 22, 2016 (GLOBE NEWSWIRE) -- McDermott International, Inc. (NYSE:MDR) announced today that the company has signed a long-term exclusive agreement with L&T Hydrocarbon Engineering (LTHE), a wholly owned subsidiary of Larsen & Toubro, focused on subsea projects offshore the east coast of India.
“This exclusive agreement further strengthens the relationship between McDermott and LTHE, both companies that have successfully cooperated on several earlier projects in India and, more recently, won the Vashishta deepwater development project,” said David Dickson, McDermott’s President and Chief Executive Officer. “With the emerging east coast of India deepwater market offering attractive development opportunities for our clients, we believe this long-term collaboration provides a compelling value proposition for the successful design and delivery of subsea projects.”
“Together, we leverage McDermott’s proven track record in subsea engineering, procurement and installation with our versatile fleet and lay technologies that will be further enhanced by the upcoming delivery of the Derrick Lay Vessel 2000 and our in-market capabilities and strategically-positioned LTHE fabrication yard and spoolbase at Kattupalli,” Dickson added.
“Through this agreement, LTHE and McDermott have developed an approach which includes utilization of LTHE’s state-of-the-art facility, strategically located Kattupalli near Chennai, for fabrication and local spoolbase in India, and offer an optimized and reliable EPCI solution for emerging deepwater projects in India,” said Subramanian Sarma, Chief Executive Officer and Managing Director of LTHE.
The agreement follows the December 21, 2015 announcement that a consortium of McDermott and LTHE had been awarded an engineering, procurement, commissioning and installation (EPCI) contract for the Vashishta and S1 Development Project, a greenfield deepwater development off India’s East coast.
McDermott is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. The Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning for complex Offshore and Subsea oil and gas projects to help oil companies safely produce and transport hydrocarbons. Our clients include national and major energy companies. Operating in more than 20 countries across the world, our locally focused and globally integrated resources include approximately 10,600 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices. We are renowned for our extensive knowledge and experience, technological advancements, performance records, superior safety and commitment to deliver. McDermott has served the energy industry since 1923 and is listed on the New York Stock Exchange. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, please visit our website at 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 the expected benefits and value to be realized by McDermott from the entry into the exclusivity agreement with LTHE. 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: 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 business partners, difficulties executing on the project and changes in industry norms. 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, 2015. 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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