Mexico: McDermott Bags EPCI and Commissioning Contract of PEMEX Production Platform

McDermott International, Inc. (“McDermott” or the “Company”) announced that one of its subsidiaries has received a letter of award for a turnkey contract for the PB-Litoral-A production platform for PEMEX Exploracion y Produccion in the Litoral Tabasco Tsimin-Xux fields. The value is approximately US$230 million and will be included in McDermott’s fourth quarter 2012 backlog.

“This project reaffirms our Altamira, Mexico fabrication facility as a key player for both domestic and international offshore construction projects,” said Steven W. Roll, Vice President and General Manager, Atlantic region. “Our investments in Altamira are beginning to show dividends as we continue to grow the facility and supporting resources in this strategic location.”

McDermott’s global resources support turnkey engineering, procurement, construction and installation (“EPCI”) solutions and offer PEMEX the most competitive solution for the PB-Litoral-A production platform. Coupled with the Company’s broad experience designing and fabricating crude oil conditioning facilities, McDermott’s advanced float-over technology for heavy topsides is a reliable and cost-effective method for topside installation and the Company’s proven track-record speaks for its consistency to deliver.

The PB-Litoral-A project scope includes front end engineering design, detailed engineering, procurement, fabrication, load-out, sea fastening, transport, installation, hook-up, commissioning and start-up of an eight-legged 1,800-tonne jacket, 4,500-tonne topsides and 2,000 tons of tripods, bridges and piles. The total weight of the facility is approximately 8,300 tonnes. McDermott will also provide training to PEMEX personnel for operation and maintenance of the facility once commissioned.

Engineering work is expected to begin in early 2013 by McDermott’s Houston and Chennai engineering offices, with fabrication at Altamira, Mexico, where at peak, more than 550 craft personnel are expected to be engaged on the project.

McDermott will carry out installation of the topsides by the float-over method using its Intermac 600 float-over barge, and the recently upgraded and improved McDermott Derrick Barge 50 will install key platform components and provide additional support.

In addition to the PB-Litoral-A scope, McDermott will undertake bridge and piping tie in, as well brownfield work on the CA-Litoral-A HP compression platform.

Full project completion is expected during the second quarter of 2015.

Press Release, January 14, 2013

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