McDermott Announces Early First Gas on ONGC's 98/2 Block Project

HOUSTON, April 1, 2020 /PRNewswire/ -- McDermott International, Inc. today announced that early first gas has been achieved on India's Oil and Natural Gas Corporation's (ONGC) 98/2 Block in the Krishna Godavari Basin, offshore India.

Awarded in October 2018, the largest subsea project in India brings together leading subsea equipment and services to provide ONGC with end-to-end project delivery. The integrated subsea package includes the supply of all subsea production systems (SPS), including 26 deepwater trees, and the installation of subsea umbilicals, risers and flowlines (SURF) at a water depth of between zero to 4,265 feet (1,300 meters). Early first gas involved the tie-back of a single well to the existing Vashishta facility. At 4,265 feet (1,300 meters), the first well that has been opened for early first gas is the deepest water depth opened by ONGC.

"McDermott is a leader in the subsea space and we have worked incredibly hard to fast-track the production to early first gas," said Ian Prescott, McDermott's Senior Vice President for Asia Pacific. "To deliver this accelerated schedule is an exceptional achievement and testament to the benefits of the collaborative commercial model put forward to ONGC. Production from a deepwater well in less than 14 months is an outstanding achievement for the deepwater exploration and production industry.

"In line with the 'Made in India' approach for the 98/2 project, a substantial amount of engineering and project management has been led from McDermott's operations in Chennai. This local approach is a new initiative in the deepwater subsea space for McDermott. We look forward to continuing our work in the Bay of Bengal as we help ONGC meet India's growing energy demands."

About McDermott 
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally integrated resources include more than 42,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com. 

Forward-Looking Statements 
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2019 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement. 

Contacts:

Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
[email protected]

Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269                                             
[email protected]

Asia Pacific Media Relations
Miki O'Farrell
Manager Marketing Asia Pacific
+6012 305 3609                                              
[email protected]

SOURCE McDermott International, Inc.