McDermott Bags Orders in Qatar and Saudi Arabia

IndraStra Global

McDermott Bags Orders in Qatar and Saudi Arabia

By IndraStra Global News Team

McDermott Bags Orders in Qatar and Saudi Arabia

Image Attribute: Offshore Energy Today

On July 11, 2019, McDermott International, Inc. (NYSE:MDR) announced it has been awarded a sizeable contract (valued between USD $1 million and USD $50 million) by Qatar Petroleum (QP) to carry out front-end engineering and design (FEED) work for offshore wellhead platforms, pipelines, and cables associated with the North Field Expansion (NFE) project. The North Field covers an area of more than 6K sq. km, equivalent to roughly half the land area of the state of Qatar.

The scope includes the design of four offshore trunk lines with intra-field pipelines, eight wellhead platforms and power and fiber optic (PFO) subsea cable rings. The FEED contract will be executed from McDermott's Doha offices, with drafting to be executed in Chennai, India. Work on the project will begin immediately, and the contract award will be reflected in McDermott's second quarter of 2019 backlog.

Just a day ago, MDR shares rose more than 10% during Wednesday's session after Saudi Aramco awarded it a US$ 1.5 billion contract for engineering, procurement, construction (EPC) and installation services for offshore gas facilities and pipelines. The engineering phase will commence during the third quarter, with completion by year-end 2020.

The US$ 1.5 billion contract follows a separate $3 billion-plus project awarded by Saudi Aramco for its Gas-Oil Separation Plant (GOSP) in consortium with China Offshore Oil Engineering Company. McDermott will lead the consortium that aims to build the GOSP offshore in the eastern flank of the Arabian Gulf, increasing production from 500,000 to 800,000 barrels per day (bpd).

Earlier this year, the company announced better-than-expected first quarter revenue that tripled to US$ 2.21 billion, but earnings missed analyst consensus forecasts. The company's backlog increased 41% year over year to US$ 15.4 billion, but full-year revenue guidance was in line analyst estimates at about US$ 10 billion for the year.