An affiliate of engineering and construction firm McDermott International Inc. (MDR - Free Report) received contracts for two projects of Saudi Arabian Oil Company – Saudi Aramco. The projects are in the Karan, Safaniya and Zuluf fields in the Arabian Gulf.
Although the value of these contracts will be included in McDermott's second quarter 2012 backlog, the company did not divulge the financial terms of the deal.
For the first project – Karan-45 – McDermott will extend services that include fabrication of a new wellhead platform, auxiliary platform, jacket and link bridge. The Houston, Texas-based company will work on subsea installation of a 20-inch flowline and a 15-kV composite power and fiber optic wire.
Project management, engineering and procurement works – expected to be completed in the first quarter 2014 – will be developed at the facility of McDermott in Al-Khobar, Saudi Arabia.
The second job – slated to be over by the first quarter of 2013 – involves the procurement of flexible flowlines along with the fabrication, transportation and installation of pipelines and subsea tie-ins.
McDermott management believes that know-how and experience gained from the previous contract in the Karan field will help the company in executing the current deal with perfection and on time.
McDermott, which currently retains a Zacks #3 Rank (short-term Hold rating), 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.
Given its geographic footprint in high-growth regions, technology leadership and efficient execution skills, the company is poised to benefit from strong industry fundamentals for offshore construction activities through 2012 and beyond.
The company competes with firms such as FMC Technologies Inc. (FTI - Free Report) and Superior Energy Services Inc. (SPN - Free Report) .