McDermott International, Inc. (NYSE:MDR) has announced a letter of award for a significant* contract from Reliance Industries Ltd. for the KG-D6 subsea field development in the Krishna Godavari Basin, located off the east coast of India.

McDermott will provide engineering, procurement, installation and pre-commissioning of subsea flowlines, vent lines, and a pipeline-end manifold for connection with six subsea wells in the R-cluster field at a water depth of up to 6,890 feet (2,100 meters), including in-field pipelines, Monoethylene Glycol (MEG) line, pipeline-end terminals, jumpers, risers, umbilicals system and the modification of the control riser platform to interface with the new facilities.

“We look forward to working with Reliance on this important and challenging project and building on our recent experience and expertise in deepwater projects across the region,” said Hugh Cuthbertson, McDermott’s Vice President for Asia. “McDermott’s selection underscores the confidence and trust we’ve built with our customers to deliver challenging projects within budget and on schedule, like our recent success on ONGC’s Vashishta project.”

In addition to the R-Cluster of six subsea wells, the option for five to seven more subsea wells can be exercised by the client for an optional S-cluster package. The optional scope also consists of two additional subsea structures and flowlines at a water depth between 4,593 feet (1,400 meters) and 5,905 feet (1,800 meters).

McDermott plans to leverage its significant experience and presence within India including its Engineering Center of Excellence office in Chennai providing engineering and project management oversight for the project. The Company also plans to use its successful One McDermott Way approach with support from its office in Kuala Lumpur, Malaysia and key vessels from its global marine fleet.

The significant lump sum contract award is expected to be reflected in McDermott’s fourth quarter 2017 backlog. The contract is scheduled for completion by the second quarter of 2020 for the base scope, and the first quarter of 2021 for the optional scope.

Reliance is developing deepwater gas and oil fields in the KG-D6 block (more commonly called KG-D6) in the Krishna Godavari Basin offshore on the east coast of India. The north-western boundary of the block is about 24 to 37 miles (40-60 kilometers) southeast of Kakinada in water depth of between 1,312 feet (400 meters) and 7,545 feet (2,300 meters). R-Cluster and Satellite-Cluster discoveries are in the KG-D6 block. Reliance is planning to develop these discoveries in phases.

* - McDermott defines a significant contract as between USD $250 million and USD $500 million.

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