McDermott International, Inc. announced a sizeable* contract award by PEMEX Exploración y Producción for subsea pipeline flowline installation in support of its Ayatsil field, located 50 miles northwest of Ciudad del Carmen in the Bay of Campeche offshore Mexico.

The scope of work includes design and detailed engineering, procurement, construction and installation of two subsea pipelines. The first line (L1) is a 24 inch diameter, approximately 1.9 miles (3.2 kilometers) length natural gas pipeline that will connect the PP-Ayatsil-C and PP-Ayatsil-A platforms. The second line (L10) is an 8 inch, approximately .9 of a mile (1.5 kilometers) in length oil pipeline that connects to the PP-Ayatsil-C platform.

"This award follows on the proven track record we have had in Mexico with PEMEX – including the fabrication and installation of the Ayatsil-C platform and the fabrication and future installation of Abkatun," said Richard Heo, McDermott's Senior Vice President for North, Central and South America. "This opportunity enables us to demonstrate our subsea capabilities in offshore Mexico. We look forward to working closely with PEMEX to successfully delivering this project with safety and quality at the forefront throughout the execution."

McDermott's operating center in Mexico City will perform project management and engineering. Offshore installation is scheduled to be completed in early 2019.

The lump sum contract award is reflected in McDermott's second quarter 2018 backlog.

Located in the Bay of Campeche, the Ayatsil field is a heavy crude oil field and is PEMEX's largest discovery to date. Water depths in the area are approximately 375-400 feet (114-121 meters).

*McDermott defines a sizeable contract as between USD $1 million and USD $50 million.

About McDermott

McDermott (NYSE: MDR) is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world.

About Pemex

Pemex, Mexico's state oil company, is engaged in the exploration, production, transportation, refining, storage and sale of hydrocarbons and derivatives. Its products include petrochemicals, natural gas, liquid gas, sulphur, gasoline, kerosene and diesel. Pemex operates 344 production fields, 6,382 production wells, 225 off-shore platforms, 6 refineries, 8 petrochemical complexes, 7,896 km of gas pipeline, 4,548 km of oil pipeline, and 19 LPG distribution terminals.