McDermott International has recently 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, McDermott said on Monday announcing the completion of the contract.
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 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,” 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 work hours 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 $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.
Red ink in 1Q
Also on Monday, McDermott posted a loss of $70 million, impacted by $69 million of restructuring and integration costs – which included costs to implement our Combination Profitability Initiative (CPI) program, change in control, severance, professional fees and settlement of litigation – as well as $4 million of transaction costs associated with the ongoing process to sell the company’s non-core storage tank and pipe fabrication businesses. In the first quarter of 2018, McDermott recorded a profit of $35 million.
McDermott reported first quarter 2019 revenues of $2.2 billion compared to $608 million in the same period of 2018.
Offshore Energy Today Staff
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