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McDermott completes more Aramco platforms

US player makes progress with Safaniyah Phase 5 work and reveals first-quarter operational results

McDermott International has completed work on the first two platforms for the Safaniyah Phase 5 project off Saudi Arabia.

The US contractor said engineering and procurement activities on the projects “are nearing completion” as it also revealed offshore work in the field relating to the Long Term Agreement 2 project from Saudi Aramco “is now substantially”.

McDermott is working on a number of phase developments at Safaniyah for Aramco, but the fifth phase involves nine jackets and decks in a deal thought to be worth more than $700 million. The Safaniyah Phase 6 project is proceeding as per the project schedule, and the first steel plate was cut on March 12, 2018, with Saudi Aramco senior management in attendance.

“ The Safaniyah Phase 6 project is proceeding as per the project schedule, and the first steel plate was cut on March 12,” the Houston-based player said in its first-quarter results guidance on Thursday of work on the sixth phase.

Another contract recently awarded by Aramco for 13 jackets “is proceeding at a fast pace”, McDermott said, “with the first structural steel expected to arrive at our Jebel Ali fabrication yard in the second quarter”.

That contract, confirmed in January, is for jackets for the Zuluf, Berri, Marjan and Abu Safah fields.

McDermott also said on Thursday that the subsea engineering, procurement, installation and pre-commissioning project set-up for Indian player Reliance Industries at KGD6 is now complete, while its workscope for the Inpex-led Ichthys liquefied natural gas project in Australia is also substantially complete.

The design job on a subsea tie-back for ExxonMobil’s West Barracouta gas field off Australia was completed last month, McDermott said.

The company also revealed that its total bid pipeline has increased by $500 million since the end of last year to around $25 billion at the end of March. This includes estimated backlog of $3.4 billion.

The order intake in the first quarter was around $320 million, with revenues around between $600 million and $610 million and net profit of between $45 million and $50 million.

The company has maintained its full-year guidance of revenues of between $3.1 billion and $3.3 billion and net profit of between $120 and $145 million.

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