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LinQ > 2017-12-22-McDermott-Awarded-Tyra-Redevelopment-Project

Home McDermott Awarded Tyra Redevelopment Project

December 22, 2017

A view of Tyra East in the Danish North Sea.

McDermott was awarded a substantial* contract from Maersk Oil for engineering, procurement, construction and
commissioning (EPCC) services for the Tyra Redevelopment project, located offshore in the Danish sector of the North Sea.
The contract was signed on December 22.

"This award heralds our return to the North Sea and is a part of our strategic growth strategy," said Scott Munro, Vice
President of Americas, Europe and Africa. "By executing our part of the Tyra Redevelopment project from Kuala Lumpur
and Batam, the project showcases our vertically integrated One McDermott Way approach to project execution and delivery,
which demonstrates our global engineering and fabrication capabilities. This is one of several projects executed in this way.
We have had a long relationship with Maersk Oil, and are committed to ensuring the efficient use of resources to meet their
needs for a safe, on-schedule, within budget project, and one that fully meets the stringent requirements for automation and
corrosion resistance, ensuring a long and productive life for the new facilities."

McDermott will provide engineering, procurement and construction for two separate work packages for Maersk Oil under the
redevelopment project. McDermott will provide its full suite of EPCC services for 7 topside structures, 6 connecting bridges
and 6 jacket extensions, all meeting the stringent technical requirements for the Danish sector of the North Sea. With a
combined weight of all structures provided by McDermott at nearly 29,000 metric tons, the scope of work represents one of
the largest combined projects for McDermott in the North Sea.

McDermott plans to perform project management, engineering and supply chain management from its office in Kuala
Lumpur, Malaysia and will fabricate and assemble the structures at its fabrication yard at Batam Island, Indonesia.

Work on the contract is expected to begin early next year and the lump sum contract will be reflected in McDermott's fourth
quarter 2017 backlog. McDermott is scheduled to complete its work packages for sail-away by February 1, 2020 and
February 1, 2021.

Project Details

One McDermott work package consists of Tyra East G platform's gas processing topside of approximately 16,500 metric
tons and includes two 100 meter connecting bridges, of 425 and 700 metric tons respectively, and a 137-meter-long flare.

The other McDermott work package consists of two wellhead topsides for Tyra East B and Tyra East C at 1,600 and 1,240
metric tons respectively; a 2,250 metric ton riser topside at Tyra East E; two wellhead topsides for Tyra West B and Tyra
West C at 1,290 and 1,350 metric tons respectively; and a riser topside at 304 metric ton at Tyra West E. Also included are
four connecting bridges ranging from 55 to 1,000 metric tons. McDermott will also fabricate six module support frames
(MSF) totaling 1,170 metric tons to raise the existing platforms 13 meters to account for seabed subsidence. The existing
four wellheads and two riser topsides along with the old bridges will be removed by others while retaining the original jackets
to accept the new topsides with their MSFs.

Located approximately 225 kilometers west of Esbjerg, Denmark in the North Sea, the Tyra gas field is located in blocks
5504/11 and 12 and is the center of Denmark's national energy infrastructure, processing 90 percent of the nation's gas
production. First production was from the field in 1984.

* - McDermott defines a substantial contract as between USD $500 million and USD $750 million

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