Press Release
25 February 2015
PETROFAC AND McDERMOTT ENTER STRATEGIC ALLIANCE FOR SURF SECTOR
Petrofac, the international oil and gas facilities service provider, has entered into a Memorandum of Understanding (MoU) with offshore engineering, procurement, construction and installation (EPCI) company McDermott International, Inc. (McDermott) (NYSE:MDR) to form a strategic marketing alliance.
Under the terms of the five year Alliance, which is subject to any regulatory approvals, the two companies will jointly pursue opportunities in the deepwater subsea, umbilicals, risers and flowlines (SURF) sector. The aim is to develop a first-class SURF market position targeting EPCI projects in the US Gulf of Mexico, Mexico, West Africa, Brazil, Mediterranean and North Sea.
The Alliance will give both parties a wider geographic reach and enhanced access to world-class opportunities. The blend of experience, assets and capabilities will enable us to offer clients a very competitive integrated solution for their deepwater developments. It will also offer a broader range of assets to widen the potential market and optimise asset use.
Bringing together the combined expertise of the two companies will open up further EPCI opportunities for Petrofac's world-class JSD6000 offshore installation vessel. Integrating its J-Lay, S-Lay and Derrick functions in conjunction with McDermott's speciality and established SURF fleet, including its new Derrick Lay Vessel DLV2000 and strong subsea fabrication capability, the Alliance will offer access to high-end turnkey projects in the deepwater and SURF markets.
Yves Inbona, Managing Director for Petrofac's Offshore Capital Projects business, said: "We are delighted to be working with McDermott who are natural partners to progress our offshore strategy in a challenging but ultimately rewarding market."
"The strategic value of this alliance benefits our clients by combining each company's strengths to create a new competitive top-tier market participant," said Scott Cummins, Senior Vice President, Commercial for McDermott. "As a leading offshore and subsea EPCI contractor, McDermott has a demonstrated track record of delivering complex, subsea projects such as the ongoing INPEX Ichthys gas condensate SURF project offshore Australia. We look forward to partnering with Petrofac on projects of this complexity and scale in the deepwater environment."
Ends
For further information contact:
Alison Flynn
Head of Media Relations
Petrofac
[email protected] +44 (0) 20 7811 4913
Petrofac Investor Relations +44 (0)20 7811 4900
Jonathan Low
Jonathan Edwards
[email protected]
Tulchan Communications Group Ltd
Stephen Malthouse
Martin Robinson
[email protected] +44 (0) 20 7353 4200
Notes to Editors
Terms of the Alliance
The key terms of the Alliance are:
· Territory: US Gulf of Mexico, Mexico, West Africa, Brazil, Mediterranean and North Sea
· Scope: SURF projects above US$200 million
· Duration: Five years (plus follow-on time to deliver secured projects)
· Structure and scope: project scope will be split between partners roughly equally, but according to the specifics of a particular opportunity, and governed by separate project agreements
Petrofac
We are an international service provider to the oil and gas production and processing industry, with a diverse customer portfolio including many of the world's leading integrated, independent and national oil and gas companies.
We design, build, operate and maintain oil and gas facilities, delivered through a range of innovative commercial models, enabling us to respond to the distinct needs of each client and helping them to transform the value of their assets across the oil and gas life cycle. Our service offering is underpinned by our ability to develop resource holders' local capability through the provision of skills training with competency development and assurance frameworks.
Around 20,000 employees operate out of seven strategically located operational centres, in Sharjah, Aberdeen, Abu Dhabi, Woking, Chennai, Mumbai, and Kuala Lumpur and a further 24 offices worldwide. Petrofac is quoted on the London Stock Exchange (symbol: PFC).
For additional information, please refer to the Petrofac website at www.petrofac.com.
McDermott
McDermott is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. The Company delivers fixed and floating production facilities, pipelines 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 clients include national and major energy companies. Operating in more than 20 countries across the world, our locally focused and globally integrated resources include approximately 13,800 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 is listed on the New York Stock Exchange, (symbol: MDR).
