McDermott International, has confirmed 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.