On Jun 23, oil and gas-focused engineering and construction firm McDermott International Inc. MDR announced that it has received a ‘sizeable’ contract from LLOG Exploration Offshore, LLC. However, the financials details of the deal were not disclosed.
The contract is for LLOG Exploration’s Otis field subsea tieback project, located in the Gulf of Mexico. McDermott stated that this contract would be added to its second-quarter backlog.
Contract for the Otis development project involves project management, engineering, fabrication and installation of an insulated rigid flowline and steel catenary riser (SCR). The contract also contains provision for pipeline end termination (PLET) and jumper as well as pre-commissioning activities.
McDermott primarily serves the worldwide offshore oil and gas field developments. The company’s services include front-end design and detailed engineering. The firm also specializes in fabrication and installation of offshore drilling and production facilities. Moreover, the company installs marine pipelines and subsea production systems.
Additionally, the company provides project management and procurement services. McDermott operates in most of the major offshore oil and gas producing regions, including the U.S., Mexico, Canada, the Middle East, India, the Caspian Sea and the Asia Pacific.
The company is expected to benefit from new management, which is focused on cost improvements and streamlining of operations.
McDermott currently carries a Zacks Rank #3 (Hold).
Better-ranked companies from the broader energy sector include NuStar Energy L.P. NS, PetroChina Co. Ltd. PTR and CNOOC Ltd. CEO. All these stocks sport a Zacks Rank #1 (Strong Buy).
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