McDermott and Larsen & Toubro Enter Exclusivity Agreement

McDermott International, Inc. (NYSE: MDR) announced that the company has signed a long-term exclusive agreement with L&T Hydrocarbon Engineering (LTHE), a wholly owned subsidiary of Larsen & Toubro, focused on subsea projects offshore the east coast of India.

“This exclusive agreement further strengthens the relationship between McDermott and LTHE, both companies that have successfully cooperated on several earlier projects in India and, more recently, won the Vashishta deepwater development project,” said David Dickson, McDermott’s President and Chief Executive Officer. “With the emerging east coast of India deepwater market offering attractive development opportunities for our clients, we believe this long-term collaboration provides a compelling value proposition for the successful design and delivery of subsea projects.”

“Together, we leverage McDermott’s proven track record in subsea engineering, procurement and installation with our versatile fleet and lay technologies that will be further enhanced by the upcoming delivery of the Derrick Lay Vessel 2000 and our in-market capabilities and strategically-positioned LTHE fabrication yard and spoolbase at Kattupalli,” Dickson added.

“Through this agreement, LTHE and McDermott have developed an approach which includes utilization of LTHE’s state-of-the-art facility, strategically located Kattupalli near Chennai, for fabrication and local spoolbase in India, and offer an optimized and reliable EPCI solution for emerging deepwater projects in India,” said Subramanian Sarma, Chief Executive Officer and Managing Director of LTHE.

The agreement follows the December 21, 2015 announcement that a consortium of McDermott and LTHE had been awarded an engineering, procurement, commissioning and installation (EPCI) contract for the Vashishta and S1 Development Project, a greenfield deepwater development off India’s East coast