25 February 2015
Petrofac and McDermott Enter Strategic Alliance for SURF Sector
Petrofac, the international oil and gas facilities service provider, has entered into a Memorandum of Understanding (MoU) with offshore engineering, procurement, construction and installation (EPCI) company McDermott International, Inc. (McDermott) (NYSE:MDR) to form a strategic marketing alliance.
Under the terms of the five year Alliance, which is subject to any regulatory approvals, the two companies will jointly pursue opportunities in the deepwater subsea, umbilicals, risers and flowlines (SURF) sector. The aim is to develop a first-class SURF market position targeting EPCI projects in the US Gulf of Mexico, Mexico, West Africa, Brazil, Mediterranean and North Sea.
The Alliance will give both parties a wider geographic reach and enhanced access to world-class opportunities. The blend of experience, assets and capabilities will enable us to offer clients a very competitive integrated solution for their deepwater developments. It will also offer a broader range of assets to widen the potential market and optimise asset use.
Bringing together the combined expertise of the two companies will open up further EPCI opportunities for Petrofac’s world-class JSD6000 offshore installation vessel. Integrating its J-Lay, S-Lay and Derrick functions in conjunction with McDermott’s speciality and established SURF fleet, including its new Derrick Lay Vessel DLV2000 and strong subsea fabrication capability, the Alliance will offer access to high-end turnkey projects in the deepwater and SURF markets.
Yves Inbona, Managing Director for Petrofac’s Offshore Capital Projects business, said: “We are delighted to be working with McDermott who are natural partners to progress our offshore strategy in a challenging but ultimately rewarding market.”
“The strategic value of this alliance benefits our clients by combining each company’s strengths to create a new competitive top-tier market participant,” said Scott Cummins, Senior Vice President, Commercial for McDermott. “As a leading offshore and subsea EPCI contractor, McDermott has a demonstrated track record of delivering complex, subsea projects such as the ongoing INPEX Ichthys gas condensate SURF project offshore Australia. We look forward to partnering with Petrofac on projects of this complexity and scale in the deepwater environment.”