McDermott International

McDermott International, Ltd provides engineering and construction services to the energy industry. Operating in over 54 countries, McDermott has more than 30,000 employees, as well as a fleet of specialty marine construction vessels and fabrication facilities around the world. Incorporated in Bermuda,[2] It is headquartered in the Energy Corridor area of Houston, Texas.[3][4]

History

In 1923, Ralph Thomas McDermott established J. Ray McDermott & Company Incorporated at the age of 24 upon receipt of a contract to build 50 wooden drilling rigs for a wildcatter in Luling, Texas. Knowing he could benefit from his father's long-time experience in the lumber and oilfield construction businesses, Ralph made John Raymond McDermott a partner and the company's namesake.

In 1930, it expanded the business from its original headquarters in Eastland, Texas, to Luling after a boom in oil exploration in the area. In 1932, the company moved to Houston, Texas with the continuing oil boom. It provided different services to the oil industry through three McDermott family-owned businesses: J. Ray McDermott & Co., Elmax Construction, and Stall & McDermott.

Becoming McDermott International

In 2010, McDermott International share-holders agreed to spin off the U.S.-based government contracting services company Babcock & Wilcox and its related other domestic companies. The oil & gas services company, J. Ray McDermott, discontinued use of the J. Ray McDermott brand; and continued its oil & gas services contracting under the name McDermott International. [5]

2017–2018

On December 18, 2017, CB&I and McDermott agreed to combine and form a fully vertically integrated onshore-offshore company.[6] The merger was approved in May 2018.[7] In March 2018, the company announced that it had new business with Baker Hughes and BP, with David Dickson still CEO.[8] CB&I's stock ceased being listed on the NYSE on May 11, 2018. Gary P. Luquette was the chairman of the combined company.[9] In May 2018 the company became a member of the S&P MidCap 400, replacing Diebold Nixdorf.[10]

In August 2018, McDermott signed a contract with Shell to work on the Perdido development in the Gulf of Mexico.[11] Also, that month, the company was sued by TechnipFMC over allegedly stolen trade secrets.[12]

Post combination

After the combination, LNG projects in Hackberry, LA & Freeport, TX and Power projects experienced challenges and the company sold a portion of its pipe fabrication operations.

McDermott secured a $1.7B credit deal. This deal carries super senior credit terms that are structured with the "kind of terms they would receive if they were to convert their debt to a debtor-in-possession loan in bankruptcy."[13]

The company purchased Siluria Technologies, which developed oxidative coupling of methane processes, in 2019.[14]

Restructuring

On January 21, 2020, McDermott announced that it had filed for Chapter 11 bankruptcy, cancelling all shares of common stock.[15]

The bankruptcy case was filed as prepackaged restructuring in the United States District Court for the Southern District of Texas and includes the parent company, McDermott International, Inc. and 247 affiliated companies. The primary case is identified as case number 20-30336.[16]

In six months, McDermott emerged from Chapter 11 bankruptcy with a new structure and strategy in June 2020..[17]

Fueling the Energy Transition

McDermott emerged from restructuring positioned to continue to meet client needs as the industry shifted. It saw a significant increase in opportunities to apply its technical expertise to achieve the Energy Transition as operators made—and then worked to meet—carbon reduction goals. McDermott secured front-end engineering and design projects from Michelin Group. [18] The company was tapped to provide EPC services for Tennet’s offshore grid connection project: BorWin6 980MW high-voltage, direct current (HVDC). [19]

Secured contract to deliver EPC services of power-to-gas facility [20] in New Jersey.

Under a contract with Viva Energy Australia [21], McDermott delivers FEED services for a new modularized production unit that will produce ultra-low sulfur gasoline to meet the proposed changes to Australia's fuel quality standards from the end of 2024.

type	Private
foundation	1923
founder	Ralph Thomas McDermott
location	Houston, Texas, U.S.
key people	Michael McKelvy, President and CEO
industry	Energy Engineering and Construction
num employees	~40,000 (2021)
footnotes	‡R1R‡