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Middle East market helps drive increase in revenues at McDermott

Wed 25 Apr 2018 by David Foxwell

Middle East market helps drive increase in revenues at McDermott
McDermott said projects in the Middle East are driving fabrication and offshore activity at the company

McDermott International says projects in the Middle East are helping to drive utilisation of its marine assets.

“We reported Q1 2018 revenues of US$607.8M, an increase of US$88.4M, compared to revenues of US$519.4M for the prior-year first quarter,” said the company when announcing its latest results.

Key projects driving revenues for Q1 2018 were the Saudi Aramco LTA II Lump Sum and Saudi Aramco Safaniya Phase 5 project.

“The increase from the prior-year first quarter was primarily due to the settlement of a significant change order in Asia and an increase in activity in the Middle East,” said the company.

In the Middle East McDermott experienced high levels of fabrication activity and utilisation of marine assets, as the majority of the Saudi Aramco long term agreement II (LTA II) platforms left the Jebel Ali yard to be installed.

Offshore work in the Safaniya field relating to the LTA II project is now approaching completion. Preparation for the Header 9 offshore campaign is progressing well, and the work is scheduled to start early in Q2 2018. Engineering and procurement activities on the Safaniya Phase 5 project are nearing completion, with the first two platforms 100% complete. They will be loaded out onto the cargo barge in Q2 2018.

Fabrication of the remaining structures is ongoing, and they will be ready for loadout in line with the agreed project schedule. All the structures on the four jackets and three observation platforms have been installed and the completion activities will be concluded in Q2 2018.

A recently-awarded Saudi Aramco project for 13 jackets is proceeding at a fast pace, with the first structural steel arriving at the company’s Jebel Ali fabrication yard in Q2 2018. Pipelay has commenced on the Total PRP project in Qatar, with final handover scheduled in Q2 2018.

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