McDermott Wins Lump Sum Contract by Saudi Aramco

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McDermott Wins Lump Sum Contract by Saudi Aramco

McDermott International, Inc. (NYSE:MDR) announced it has been awarded a lump sum contract by Saudi Aramco for brownfield work in various fields offshore Saudi Arabia.

Work on the contract is expected to be executed through the second quarter of 2018. The award follows the June 2015 signing of a second Long Term Agreement (LTA) between McDermott and Saudi Aramco for engineering, procurement, construction and installation (EPCI) opportunities in various fields offshore Saudi Arabia.

The package of various EPCI projects that make up the lump sum award represent the largest single award for McDermott’s Middle East Area operations in company history. Revenue from the fixed-price award will be included in McDermott’s third quarter 2015 backlog.

“Winning this important award and signing the new LTA sends a clear signal that our increased engagement with key clients is generating concrete results,” said David Dickson, McDermott’s President and CEO. “Our detailed knowledge and understanding of Saudi Aramco’s objectives, as well as our proven excellence in the Kingdom and the region continue to set us apart. Delivering on strong project execution and integrating McDermott’s local knowledge are critical to future success as we execute these and other projects for Saudi Aramco.”

Tom Mackie, McDermott’s Vice President, Middle East, said, “As one of the original two contractors for Saudi Aramco’s first LTA in 2007, we understand Saudi Aramco’s offshore fields, standards and specifications – and the value that Saudi Aramco places in McDermott’s fully integrated EPCI solutions.”

During the execution of the projects under the fixed price contract, McDermott plans to maximize in-Kingdom execution activities with a significant portion of the engineering and fabrication scope expected to be carried out by its engineering office in Al Khobar and fabrication facility in Dammam, respectively.

Additional services are expected to be provided by McDermott engineering teams in Dubai, United Arab Emirates and Chennai, India. Procurement is expected to be managed by McDermott’s Global Procurement Office based in Dubai and vessels from the McDermott global fleet, including specialized shallow-water installation vessels, are scheduled to undertake offshore installation.

McDermott provides its investors with information relating to estimated contract value in its quarterly supplemental financial information slides which can be found on the Investor Relations section of McDermott’s web site. This award would fall into the largest descriptor range included in these slides.

Link & Source: EPC Engineer

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Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.