HOUSTON, May 18, 2016 (GLOBE NEWSWIRE) -- McDermott International, Inc. (NYSE:MDR) has joined with 14 other leading offshore companies in signing a Memorandum of Understanding (MOU) to establish engineering industry standards.
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/2b6594c1-dd01-4fcb-9a05-a57bf7ebe4a4
Known as the Standardization Unified Joint Industry Project (JIP), the one-year agreement sets out the terms and conditions upon which the signing parties shall establish industry standards for offshore engineering. The objective is to reduce cost and increase predictability without compromising safety in international offshore oil and gas engineering, procurement and construction (EPC) topside projects by using standardized bulk materials and equipment, construction and qualification procedures, and documentation requirements.
As part of the agreement, all parties also agreed to comply with all applicable laws, rules and regulations in the performance of the MOU and in particular with all applicable anti-trust, anti-competition and anti-bribery laws.
Joining McDermott for the signing ceremony at Offshore Technology Conference, Houston, Texas were officials from offshore engineering companies Wood Group Mustang, DNV Korea Limited, Technip, Samsung Heavy Industries Co., Ltd. (SHI), Daewoo Shipbuilding and Marine Engineering Co., Ltd. (DSME), Hyundai Heavy Industries Co., Ltd. (HHI), Royal Dutch Shell, Chevron and MODEC International. Classification societies signing the agreement were American Bureau of Shipping (ABS), Bureau Vitas (BV), Korea Offshore & Shipbuilding Association (KOSHIPA), Korea Marine Equipment Research Institute (KOMERI) and Lloyd’s Register.
Vaseem Khan, Vice President, Engineering for McDermott, said that McDermott welcomes the opportunity to partner with stakeholders, customers and industry peers ”to craft standards that deliver sustainable cost reductions without compromise to safety or operability.”
“McDermott, with its unique and worldwide engineering-through-installation expertise is well placed to understand the challenges of standardization and has built its reputation for engineering excellence over the past 94 years,” Khan said. “As the industry moves to arrest and reverse the cost and schedule inflation of the past decade, a core element is offshore and subsea product standardization with a move to agnostic solutions which are industry specific but operator independent.”
About McDermott
McDermott is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. The Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning for complex Offshore and Subsea oil and gas projects to help oil companies safely produce and transport hydrocarbons. Our clients include national and major energy companies. Operating in more than 20 countries across the world, our locally focused and globally integrated resources include approximately 11,200 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices. We are renowned for our extensive knowledge and experience, technological advancements, performance records, superior safety and commitment to deliver. McDermott has served the energy industry since 1923 and is listed on the New York Stock Exchange. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, please visit our website at www.mcdermott.com.
Forward-Looking Statement
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 expectations regarding the impact of the MOU and challenges of offshore and subsea product standardization on McDermott’s business going forward. 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: 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 business partners, difficulties executing on the project and changes in industry norms. 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, 2015 and subsequent quarterly report 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.
The photo is also available via AP PhotoExpress.