A subsidiary of energy-focused engineering and construction
McDermott International Inc.
) has inked a contract for Mexico's state oil monopoly Petroleos
Mexicanos, or Pemex's PB-Litoral-A production platform. This
platform will serve the Litoral Tabasco Tsimin-Xux fields.
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Estimated at $230 million, the engineering, procurement,
construction and installation (EPCI) contract will form part of
McDermott's fourth quarter 2012 backlog.
Per the deal, McDermott is entitled to front-end engineering
design, detailed engineering, procurement, fabrication, load-out,
sea fastening, transport, installation and hook-up. The company
will also be responsible for commissioning and start-up of an
eight-legged 1,800-ton jacket, 4,500-ton topsides and 2,000 tons
of tripods, bridges and piles.
After commissioning work, McDermott will train Pemex personnel
for operation and maintenance of the facility. Total weight of
the facility is approximately 8,300 tons. McDermott will also
carry out bridge and piping tie in along with brownfield work on
the CA-Litoral-A HP compression platform.
The engineering work is expected to start in early 2013 and the
project will be completed by second quarter 2015. McDermott's
Houston and Chennai engineering offices will undertake the
engineering work while fabrication will be carried out at
Incorporated in 1959, Houston, Texas-based McDermott
International Inc. is an engineering and construction company,
solely focused on the offshore oil and gas business. McDermott
primarily serves the worldwide offshore oil and gas field
developments, including front-end design and detailed
engineering, fabrication and installation of offshore drilling
and production facilities, as well as installation of marine
pipelines and subsea production systems.
Additionally, the company provides project management and
procurement services. It operates in most of the major offshore
oil and gas producing regions, including the U.S., Mexico,
Canada, the Middle East, India, the Caspian Sea and Asia Pacific.
However, we believe that the transfer of the Power Generation
Systems and Government Operations segments into a separate,
independent and publicly traded entity -
The Babcock & Wilcox Company
), has left McDermott with a less diversified business, thereby
heightening its risk profile.
McDermott, which currently retains Zacks Rank #3 (Hold), shares
business ties with
Williams Partners L.P.