• Award marks McDermott's fifth contract to date for the Safaniya field, a testament to McDermott's operational expertise in offshore Saudi Arabia
  • McDermott to provide full suite of EPCI services for 9 slipover jackets, 10 production deck modules, an electrical distribution platform and associated cables and pipeline
  • Contract award builds on long term relationship with Saudi Aramco and supports Saudi Arabia's Vision 2030

DUBAI, November 20, 2017 - McDermott International, Inc. (NYSE:MDR) today announced a major* contract award from Saudi Aramco for engineering, procurement, construction and installation (EPCI) services in the Safaniya onshore and offshore field.

The contract, awarded under the existing long-term agreement with Saudi Aramco, includes the full suite of EPCI services including design, fabrication, installation and pre-commissioning of 9 slipover jackets, 10 production deck modules, an electrical distribution platform and associated cables and pipelines. The combined weight of the structures will exceed 22,000 short tons (20,000 metric tons), with the pipelines totaling over 16 miles (26 kilometers) and the cables totaling around 13 miles (22 kilometers).

'McDermott continues to receive contracts under the long-term agreement for Saudi Aramco's most considerable projects. This award is a continuation of our long-standing relationship and successful track record with Saudi Aramco,' said Linh Austin, McDermott Vice President, Middle East and Caspian. 'We plan to execute much of the project from our Al Khobar office and Dammam fabrication facility, increasing our local content in country, in support of Saudi Arabia's Vision 2030 and Aramco's In-Kingdom Total Value Add (IKTVA) program.'

Located approximately 125 miles (201 kilometers) north of Dhahran in the Arabian Gulf, the Safaniya oil field is currently the largest offshore oil field in the world, by production. This brownfield project is the next phase of a wider campaign to replace aging facilities with electrified platforms to maintain and enhance the field's production.

Work on the contract is expected to begin immediately and will be reflected in McDermott's fourth quarter 2017 backlog.

McDermott has committed to a nine initiative plan to increase its contribution to the country's localization efforts and aid Saudi Aramco in meeting its 2021 objectives.

McDermott plans to use its engineering and procurement teams in Dubai, Chennai and Al Khobar, Saudi Arabia. Construction is expected to take place at McDermott's facilities in Dammam, Saudi Arabia and Jebel Ali, Dubai. Vessels from McDermott's global fleet are scheduled to perform the installation work.

* - McDermott defines a major contract as between USD $750 million and USD $1,500 million.

About McDermott
McDermott is a leading provider of integrated engineering, procurement, construction and installation ('EPCI'), front-end engineering and design ('FEED') and module fabrication services for upstream field developments worldwide. McDermott delivers fixed and floating production facilities, pipelines, installations 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 customers include national and major energy companies. Operating in approximately 20 countries across the world, our locally focused and globally integrated resources include approximately 12,000 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 shares of its common stock are 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, visit our website at www.mcdermott.com.
Forward-Looking Statements
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 backlog, to the extent backlog may be viewed as an indicator of future revenues, and the expected value, scope, execution and timing associated with the project discussed in this press release. 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: adverse changes in the markets in which we operate or credit markets, 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 other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. 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, 2016 and subsequent quarterly reports on Form 10-Q. 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.

McDermott International, Inc.

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McDermott International Inc. published this content on 20 November 2017 and is solely responsible for the information contained herein.
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