McDermott Wins Saudi Amiral Work
Major US contractor McDermott International has been awarded a “large” contract (worth between $50 million and $250 million) for Aramco and Total’s joint-venture Amiral petrochemical complex in Jubail, Saudi Arabia.
The Saudi and French companies announced in April 2018 they had signed a Memorandum of Understanding to build the complex, which will be centered on a mixed-feed steam cracker producing 1.5 million t/y of ethylene.
Under terms of the agreement, McDermott will provide a suite of licenses, a basic engineering package, extended basic engineering, training, technical services and proprietary equipment.
Licenses and engineering will be supplied by McDermott’s Lummus Technology division for olefins, low pressure recovery (refinery off-gas recovery and treating) pygas hydrotreating, MTBE production and back cracking of MTBE to produce high-purity isobutene and methanol. Lummus will also provide BASF’s N-methylpyrrolidone-based butadiene extraction process as well as its own proprietary Short Residence Time (SRT) heaters for ethylene production.
Leon de Bruyn, McDermott’s senior vice president, Lummus Technology, said the award strengthens its “industry-leading ethylene position by taking on the role of master licensor for multiple licensed units.”
In separate news, the Houston-based engineering group said it has agreed access with some of its lenders for up to $1.7 billion of additional financing. It will have immediate access to $650 million, comprised of $550 million on a term loan and $100 million as a letter of credit.
“The agreement provides near-term liquidity for the company to manage working capital and provide performance guarantees on expected new awards,” president and CEO, David Dickson, said.
The company added that it continues to pursue a “strategic alternatives process” for Lummus as well as a sale of the remaining portion of its pipe fabrication business.
Last month, McDermott announced it was mulling a potential sale of its technology arm after receiving unsolicited bids for all or parts of the business. The contractor, however, has decided to abandon a sale of its industrial storage tank business.
At the same time, the group announced it is withdrawing its previously stated guidance for full-year 2019 financial results.